Evaluation of Construction Project / Credit Offer

Now to the somewhat provocative statement by HilfeHilfe:

Well, I see the 8.3k net as a satire contribution. Regardless: I don’t think 40% of the net is that wrong, 3-4% repayment, however, is exaggerated. I would set the repayment so that you are definitely done by retirement age. Maybe 2.5%. With a 15-year commitment according to the calculator 1900€ per month plus 400€ incidental costs plus 200€ kitchen. That nicely puts us at 2500€ just for the house. : Can you come to terms with such an amount? Is there enough left to live on?

I structured it a bit differently, but currently our calculation looks as follows:

Repayment rate house: €1,500 per month
Additional costs house: €555 per month (includes a maintenance reserve of €140 per month)

This amounts to €2,055. We have included the kitchen in the total amount and thus in the financing.

After deducting all other costs and €600 for food shopping per month, we have a surplus of a little more than €1,300 per month. This would initially be completely freely available to us, i.e. we would not starve, our two vehicles would be fully maintained (gasoline, insurance, taxes, inspection, tires, reserve for new purchase, etc.) and some aspects of leisure activities (see below) were also taken into account.

In this calculation, I would initially have no concerns; the variable component was completely disregarded, as was the annual tax refund.

As soon as the child and the wife’s part-time job come into play, the surplus would decrease somewhat (€800-900 per month, possibly €1,000 per month with prior tax class optimization), but I see this as necessary in order to really be able to live comfortably. With the variable salary and the tax refund, we would additionally have about €10,000 per year available.

Therefore, my approach would be to initially keep the installments in the range of €1,500-1,600 per month and depending on how the situation develops, to make an extra repayment annually.

In addition to the factors mentioned above, some entertainment factors were also considered (Netflix, Amazon Music, Readly, we both have job bikes, mobile phone tariffs, ...).

After reflecting on everything again, we think we can manage the whole project.

From your point of view, does it make sense to design the monthly installment so that a buffer remains, and then to make special repayments annually depending on the situation? Or what would speak against it?

As soon as the child and part-time of the wife come into effect, the surplus would decrease slightly (800-900,- € per month, possibly 1,000,- € per month with prior tax class optimization), but I consider this necessary in order to be able to live comfortably. With the variable salary and the tax refund, we would also have about 10,000,- € more annually available.

Go ahead, but there is certainly nothing reflective about you, otherwise you would have come to a different conclusion. You seem to me currently to act more “emotion-driven” than rationally. Your decision was probably already made before your inquiry here. Let’s see what you ultimately actually contribute as special repayments from the special payments. My tip (without meaning it badly): You’d better spend the money on a nice vacation.