Hello Mel,
Sorry. I always calculated with the fixed costs. So with 900,- EUR warm rent.
No, you are only allowed to calculate the cold rent (the banks do it the same way), since you will still have additional costs. And if you increase your living space (which is usually the case when moving from a rented apartment to a house), you tend to have higher additional costs than before!
As already described, we currently have 2100,- EUR left for living. And I find that plenty. Only now can we start saving. The question is, wouldn't it be better to pay off a loan right away instead of building equity for years first? I mean, I understand that we won't buy anything tomorrow. But maybe in 1-2 years?
I can understand your reasoning very well. I am still a few years farther from 40 than your husband and we had a little equity (even if it wasn’t much), but we manage with around 1200 euros for our house – with a term of about 32 years.
Our consideration was also – with the interest rates, waiting 1-2 more years to save more equity could be the wrong decision. Keep paying rent, or better build right away? We decided to build. Because if it doesn’t work now, it certainly won’t work in 2-3 years if interest rates rise.
As our financial advisor said so aptly in the first discussions: He can’t promise us that we can afford *that* house (like we envision it), but we can afford *a* house.
That’s how it went: We had to make some compromises with a heavy heart, but at the moment we are building.
Conclusion:
Our starting position was a bit better than yours – but also not as stable as some others. We took the risk and built.
Whether everything really goes as we currently imagine it, or if it will go wrong?!?!
Ask me again in a few years – then I can answer you. (But I assume everything will go according to plan – otherwise I wouldn’t have done it :rolleyes:)
By the way:
Just looking for houses / building plots initially costs nothing – except some time :p
As long as you don’t sign anything, everything is completely non-binding!
Look at used houses, show homes (model house parks), talk to construction companies, etc. This will give you a feeling for "what a house costs" – and what your dreams and ideas would cost.
If you also talk to 2-3 banks / financial advisors in parallel, you get a feeling for what you can afford and when.
And then you can still decide whether your dream is feasible – or will burst.
As I said – as long as you haven’t signed anything yet, everything is completely non-binding!
Best regards
Micha :cool: