Hello again,
thanks again for your contributions. I still find them important for our planning and really don’t want to "clear them away," but to discuss them. I also don’t want to get financing confirmed with just a nod, but equally not to have it dismissed too quickly.
Our income is transparent and accessible online to absolutely everyone. A secondary school teacher in BW earns A13 and starts at the basic salary level 5. This increases at fixed intervals with years of service. My better half and I are currently in our second service year, so we are affected by the entry salary reduction of 8% (a total of 16%(!)) that applies for the first three service years. This will fall away next year in October 2017, then taking into account the rising basic salary level, the family allowances, as well as the supplement for married employees and (theoretically) adding two child benefits, you get to roughly €7,000.
Depending on which year you consider, this figure is naturally higher due to the results of the salary rounds (usually about 2% per year) and the corresponding next higher basic salary level, but it increases by at least €100 each year. I have not even included these salary rounds in my calculations, but instead assume zero increases every year.
The fact is... the income amounts to at least €7,000 with two children, whether I want it or not.
How much of that and especially why remains, is stated in the Hamburg planners. The contribution for the children regarding the private health insurance is actually not included. I will find out what that will cost. Thanks for the hint! Otherwise, with the two children for the reasons described above, just as without children, roughly €1,100 remains (minus this item which still needs to be clarified). The additional costs for care and provisioning are offset by the additional income and hardly noticeable adjustments in two or three control variables.
Regarding the house, you are absolutely right Jochen. The final division of costs is still a mystery for us. We have 12 meters of elevation over 35 meters to overcome. I have attached two pictures that basically depict both the plot and our idea of the house one-to-one. The first architect estimated €600,000, the second €700,000. We are now trying to arrange a third preliminary discussion and will be a bit wiser then… or not… In any case, we will definitely take your ideas into this discussion!
The conditions for the loan are also clear by now.
€700,000 at 1.85% effective annual interest and 2% repayment fixed for 20 years with a special repayment option of 5% of the loan amount per year. This makes a monthly rate of €2,250 and a remaining debt after 20 years of €360,000.
If you now consider annual special payments of €4,000 (this is the amount of our tax refund), we end up with a remaining debt of €265,000.
If we now assume, regarding the described income and expense development, that we (averaged over 20 years (!!)) can save €500 every month, we would have a remaining debt of €120,000.
You are absolutely right, Abzahler. When we started dealing with this topic, I (especially) had enormous qualms about such an amount, which was even lower back then. But after playing through one or the other thought, I believe it is absolutely doable.
The big BUT: Only with two salaries (at least for 25 years), only without flying to Dubai every year, and only without a divorce
I don’t think I am ignoring the concerns in a stubborn and incorrigible way (I personally consider teachers the worst people on earth and don’t like staff rooms at all ), I am just trying to counter them with counterarguments... I think that’s a huge difference and of course I’m still thinking about it, because it obviously is not understood that way.
