Do we take on too much when we want to build?

  • Erstellt am 2014-03-31 18:50:35

Dobbylein

2014-03-31 18:50:35
  • #1
Hello everyone,
my wife and I (32 years old) also want to build:

Purchase price semi-detached house 375,000 euros turnkey (no relevant additional costs)
Equity 60,000 euros

With property transfer tax and notary fees, we would have to take out 340,000 euros.

My net salary is 3,100 euros (non-terminable/civil servant) and will legally increase by about 250 euros every 2 years (up to about 4,900 euros net). My wife earns 2,250 euros as a senior employee. We want to have 1-2 children, but my wife definitely wants to go back to work.

We have a financing offer with 2% repayment for 1,250 euros monthly (interest rate 2.3% with 10 years fixed interest). We therefore calculate that 1,650 euros including heating costs etc. would be spent.

Currently we pay 850 euros warm and both still have car installments (I pay 550 euros, my wife 300). These will soon be eliminated without replacement. Currently, despite this burden, we are doing very well.

Do you consider the financial burden realistic with regard to the salaries? I must add that I have a condominium in another city (value 70,000 euros) and will inherit the parental house (150,000 euros) as well as 2 other small condominiums (together 70,000 euros). At present, however, no additional equity can be drawn from this.

Thanks for taking a look!
 

Masipulami

2014-03-31 20:22:31
  • #2
The numbers seem right, I think. However, I would rather choose a fixed interest period of 20-25 years. With the current low interest rates, 10 years is out of the question. Especially with the high financing volume. Calculate for yourself how much the rate would suddenly be if the interest rates were only 2% higher in 10 years.
 

Musketier

2014-04-09 12:55:34
  • #3


Regarding the installment, I suspect these are not very small cars. Since the cars will need to be replaced over the course of the mortgage, a similar amount should be planned as reserves for the replacement purchase.
 

Koempy

2014-04-09 13:19:06
  • #4
Definitely choose a longer fixed interest period. After 10 years, about 260,000 euros will still be outstanding with you. That is quite a chunk. Choose 15 or better yet 20 years. And if it fits, then increase the repayment rate. The problem then, however, is that the payment will rise because the interest rate gets worse with a longer term. But otherwise, I don't really see any concerns with the salaries.
 

HilfeHilfe

2014-04-09 15:33:30
  • #5
Hello

I would also advise you to choose at least 15, preferably 20 years. Allow for special repayments and include KfW funds. There are plenty of loan brokers.
 

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