Estimate credit limit for property purchase

Banks like to calculate with €2.5 per sqm for the additional costs

But I still don't understand how you set €1400 as the burden; on the other hand, today that's the cold rent + cold additional costs.

You get about a 340K€ loan for a monthly rate of 1400€. But I just noticed that operating costs are already included in the 1400€. That means you won’t get a 340K€ loan, but less. Unless, of course, you increase the rate.

Thanks for the explanation. I think with a higher rate there wouldn’t be enough reserves for savings. What do you think? The 340k would be paid off after 20 years, maybe for increasing the credit line a longer repayment period has to be accepted?
Is it possible to do something here with, for example, KfW etc.?

Banks like to calculate with €2.5 per sqm for additional costs

If you mean the warm operating costs, I agree, we are currently paying about that and I have planned for it.

But I still don’t understand how you calculate 1400€ as the burden; on the other hand today that is the cold rent + cold additional costs.

Unfortunately, I can’t follow that. 1400 is the amount that, after estimating our current expenses, fixed costs, living expenses etc., I consider fully manageable. What about the maintenance reserves you mentioned earlier? What framework should be set here?

The 340k would be paid off after 20 years, possibly accept a longer repayment period for increasing the credit line?

No, they will not be paid off then. Remaining debt about 145k€ after 20 years. Assumed were 2.8% interest over 20 years, the 1400€ monthly rate corresponds to 2.14% initial repayment. For full repayment with 340k€, 2.8% interest and 20 years term you would need to pay a monthly rate of about 1850€.

If you mean the warm operating costs I agree, we also pay that much currently and I have planned for it.

But that is the mistake. In a property you own yourself, in addition to the additional costs you know from the rental property, maintenance costs also arise. These are included in the cold rent of the rental property. One may debate whether this should be accounted for directly in new builds and if so, how much ...

The 2.5€ per sqm would be the cold and warm ancillary costs (except electricity); for new buildings, you can initially calculate another approx. 0.50€ - 1€ for maintenance.

No, they are not paid off then. Outstanding debt about €145K after 20 years. Assumed were 2.8% interest over 20 years, the €1400 monthly rate corresponds to 2.14% initial repayment. For a full repayment, with €340K, 2.8% interest and a 20-year term, you would have to pay a monthly rate of about €1850.

I have so far used several online calculators, also at the house bank the interest rates were rather around ~2 instead of 2.8%. Minus equity, I calculate a framework of about ~300k. With an initial repayment of 3.5%, exactly 271 installments are due. Outstanding debt after 20 years ~ €30K. I plan to cover this by means of special repayments.

But that’s the mistake. In an own property, in addition to the incidental costs you know from the rental property, there are also maintenance costs. These are included in the cold rent of the rental property. One may argue whether you have to factor this in directly for new buildings and if so, how much…

The €2.5 per sqm would be the cold and warm ancillary costs (except electricity); for new buildings you can initially calculate about €0.50 - 1 for maintenance.

In summary: €1/sqm as maintenance reserve would be €120 for 120 sqm living space. That should not be a problem.

So far I have used several online calculators, and even at the house bank the interest rates were rather around ~2 instead of 2.8%. Deducting equity, I am calculating with a limit of ~300k. With an initial repayment of 3.5%, exactly 271 installments are due. Remaining debt after 20 years ~ 30k. I plan to cover this by means of special repayments.

2% over 20 years would currently be very, very good conditions. I would only expect this with <60% financing. You had written that 10% equity is there. But this is completely used up for incidental purchase costs (or not enough for that yet, I had estimated those at 40k € in the scenario with the broker), so I assumed 100% financing.