Construction of a Single-Family House - Assessment of Our Financial Situation

How do you come up with the value of the apartment? Doubling in value in three years sounds rather astonishing even with the current development. Or bought cheaply from friends/family?

[QUOTE="GeradeSchräg, post: 448061, member: 53113]
Living expenses:

[*]1600.- as a flat assumption

Savings:

[*]Never deliberately saved for that, the money there is used for the vacation. Of course, in a healthy amount!

I didn’t quite understand that. (Maybe I’m just too stupid right now)
You list your monthly expenses in detail. And then suddenly there is a 1600 Euro lump sum.
Savings aren’t clear either...

Do you know your current average monthly balance?

A lot depends on that.
As several people have already written here:
Could you afford not to receive rent for a few months? It doesn’t have to be a rent dodger. Sometimes you simply don’t immediately find a suitable new tenant for the apartment.

Just as there are unpredictable expenses for the apartment where the condominium fund is not sufficient.
[/QUOTE]

Living expenses:

[*]Groceries/personal care/drugstore 750.-
[*]Restaurant costs 50
[*]Pets (food, vet, medication, stable costs) 0.-
[*]Medication
[*]Clothing 150
[*]Furniture 150
[*]Daycare/school fees (and meal money) 300
[*]Tutoring 0.-
[*]School supplies and books 20
[*]Club fees/gym 10.-
[*]Babysitter 0.-
[*]Toys 50.-
[*]Cleaning
[*]TV/video/audio/CDs/DVDs 20
[*]Tickets (football, cinema, concerts etc...) 20
[*]Donations 0.-

Totals 1520.-

That’s that.
Honestly, I have to admit at this point that we don’t keep our household budget structured as in the categories listed above. Rather, everything falls under the item living costs/expenses of daily life. If I had to split it up, it would look something like this.

Our current average monthly balance is >1800€

Vacation is mostly paid from part of my bonus payments as well as the 13th salary. Bonuses and extra salaries I consider as additional money for the family, which in my opinion should not flow into the household budget calculation and are exactly for things like vacation.

The question of lost rent is justified and cannot be answered so generally. Probably it depends on the circumstances you have so far. Maybe you save a small buffer additionally for this case. It depends on the final burden caused by the house. Salary increases have also already been announced by the company.

Currently, you can still work on making the situation of lost rent more manageable...

How did you come up with the apartment’s value?
Doubling value in three years sounds rather amazing even with the current development.
Or bought cheaply from friends/family?

[/QUOTE]

I bought the apartment well below market value and refurbished and modernized it.

[QUOTE="GeradeSchräg, post: 448061, member: 53113]
Cost of living:

[*]1600.- as a flat assumption

Savings:

[*]Never consciously saved for it, the money there is used for the vacation. In a healthy manner, of course!

I don’t quite understand that now. (Maybe I’m just too dumb right now) You list your monthly expenses in detail nicely. And then suddenly there is such a 1600 euro lump sum. Savings are also not so clear …

Do you know your current average monthly balance?

A lot depends on that. As some have already written here: Could you afford to go a few months without rent? It doesn’t have to be a tenant skimmer. Sometimes you just don’t immediately get a suitable tenant for the apartment.

Just as unpredictable expenses for the apartment, where the house fund is not enough.
[/QUOTE]

Cost of living:

[*]Groceries/Personal care/Drugstore 750.-
[*]Restaurant costs 50
[*]Pets (food, vet, medication, stable costs) 0.-
[*]Medication
[*]Clothing 150
[*]Furniture 150
[*]Daycare/School fees (and meal money) 300
[*]Tutoring 0.-
[*]School supplies and books 20
[*]Club fees/Gym 10.-
[*]Babysitter 0.-
[*]Toys 50.-
[*]Cleaning
[*]TV/Video/Audio/CDs/DVDs 20
[*]Tickets (football, cinema, concerts etc.) 20
[*]Donations 0.-

That makes 1520.-

That’s that. To be honest, I have to admit at this point that we do not keep our household book structured as in the categories listed above. Rather, everything falls under the item cost of living/ daily expenses. If I had to divide it, it would look approximately like this.

Our current average monthly balance is >1800€

Vacation is mostly paid out of part of my bonus payments as well as the 13th salary. Bonuses and extra salaries I see as additional money for the family, which in my opinion should not flow into the household cash calculation and is exactly for things like vacation.

The question of rent loss is justified and cannot be answered so generally. Probably it depends on what circumstances one has had so far. Possibly one saves a small buffer additionally for this case. It depends on the final burden caused by the house. Salary increases have also already been announced by the company.

Currently, one can still work on making the situation of rent loss more controllable... .

That all looks pretty healthy already.

The 500 euro savings rate seems too tight for me. After all, that’s the buffer you have. I would personally increase it to 1000 euros. Then, in option 1 (selling the apartment), you would have a total monthly installment of just under 1300 euros for the combined financing of the land and house.

It’s similar with option 2. With a 1000 euro savings rate/buffer, you could also absorb the 900 euro rent loss for a while.

Don’t forget that the additional costs will almost certainly be more expensive than the current 140 euros.

Hmm, the birth rate has actually been rising again since the 2000s. It was also higher in 2019 at 1.54 than for example in 1975 (old federal states). 2021 will certainly be one of the years with the highest birth rates of the surrounding decades. When you just sit around at home and have eventually watched all Netflix series, cuddling is just nice again.

Off-topic: You have not quite understood the key figure. There are 1.54 children per woman of childbearing age - that is more than before, but clearly below 2. There are only 1.54 successors per woman and her partner. This number, as you could see from the source at destatis, is already lower than that of the previous year. More in the time series live births: Germany, years, gender Women are on average 30 years old at birth - that means today's births still come from cohorts with 800,000 annual births. The cohorts with less than 700,000 births are yet to come. At the same time, inevitably the cohorts before the Pill rush to the top of the distribution, each with well over 1,000,000 births in the cohort.

Nope, I just looked up one figure to illustrate a positive trend. Another one is the positive net migration and finally the ever-lower death rate / longer life expectancy. All trends that contradict your thesis. In addition, with regard to the required living space, there is the trend towards more and more space needed per person, as mentioned above. So yes, of course we will get a pension problem, but all the singles will still need housing...