Evaluation of financing offer

Hello everyone,

after a long search (my first thread here was about 2.5 years ago) we have now found a house near Hamburg (Stade district) that we really like and already have a financing offer, with which we could go to the notary.

General information about you:

[*]Man + Woman, married since 2015
[*]Man: 31, Woman: 27
[*]Two boys, 3.5 and almost 2 years old
[*]Number 3 is on the way and expected in February
[*]Man: IT manager (Adtech), woman is currently a housewife. Both have a master's degree from the University of St Andrews
[*]I am employed, my wife is a housewife
[*]Working hours: Man: 40, Woman 24/7

Income and asset situation:

[*]Income: Gross 77k (+20% bonus), Net 4285EUR
[*]Child benefit: 404EUR (from February then about 600 child benefit + 300EUR building child benefit)
[*]Parental allowance: No, from February again 375EUR parental allowance for my wife
[*]Equity: 38,000EUR
[*]We want to pay the incidental purchase costs of 20,000EUR from the equity

Expenditure situation:

Housing costs:

[*]Current cold rent: 760
[*]Current warm rent: 960
[*]Electricity: 60
[*]Gas: 60
[*]Phone, internet, mobile: 30

Mobility costs:

[*]Monthly ticket for bus and train (also for the children!): Currently paid by the employer (81EUR, after moving about 70 EUR own contribution as more expensive)
[*]Car loan: 270EUR
[*]Insurance: 90, after moving 55
[*]Taxes: 12
[*]Fuel: 60, similar after moving
[*]Repairs: 20 for maintenance (Have 5 years warranty, the car is only 1.5 years old)
[*]Is there a second car, motorcycle, scooter? Please specify all points again! No, possibly after moving I will use an offer from Jobrad.de via our company for an electric cargo bike with child box on it, that would be about 45EUR net per month

Insurance costs:

[*]Liability insurance (also animals): 8EUR
[*]Capital or risk life insurance: 30EUR (500k risk)
[*]Riester pension: 115EUR
[*]Disability insurance: 30EUR
[*]Household insurance: 8EUR
[*]Legal expenses insurance: 22EUR

Living expenses:

[*]Groceries: 600EUR
[*]Daycare/school fees (and meal money): Currently 0 (Berlin), after moving about 200EUR
[*]For clothes, eating out, children's shoes, canteen consumption, shopping: about 500EUR, very variable since we often eat out, after moving to rural life rather less because fewer restaurants than in Berlin

Savings:

[*]Retirement provision: For each child and wife 100EUR per month into depot, 300EUR

Other expenses:

[*]Loans: 370EUR (KfW study loan)
[*]Mobile phone: Mine is paid by employer, wife 10EUR

Income and expenditure totals:

[*]Total income: currently 4700, after birth of child 3 about 5,500EUR
[*]Total expenses: 3600
[*]Balance: 1100

General information about the property:

[*]Size: 2000m2
[*]Ground reference value: 50EUR/m2
[*]Lending value according to bank: 316,000EUR
[*]Solid house, built 1983, full basement, half converted attic
[*]Double garage
[*]200m2 living space plus 200m2 cellar + approx. 80m2 expansion reserve in the attic

Construction or purchase costs:

[*]Purchase price: 281,000EUR
[*]Additional costs: 19,000EUR
[*]Total costs: 300,000EUR

Other costs:

[*]Kitchen costs: 6000EUR (Ikea self-assembly)
[*]Furniture, lamps, decoration, painting (all own work) etc.: 5000EUR

Cost summary:

[*]Total costs: 311,000EUR
[*]Deductible equity: 30,000EUR
[*]Financing amount: 281,000EUR

Necessary loan details:
(for several components please specify for all, if several variants please clearly separate):

[*]Loan amount: 281,000EUR
[*]Loan type: Annuity loan
[*]Interest rate (p.a. effective): 1.17% (mix of bank + KFW 124)
[*]Fixed interest period: 15 years
[*]Remaining debt at end of fixed interest: 162,000EUR
[*]Fictive total term until full repayment: 34.5 years
[*]Initial repayment rate: 2.35%
[*]Monthly rate: 875EUR
[*]Are special repayments possible? Up to 11,500EUR per year
[*]Repayment rate change possible?: No

My net income (4300EUR) is fixed, in addition, about 10,000EUR net bonus per year, which I do not count. From February, due to the birth of child number 3, net income will increase by 900EUR (3 times building child benefit, plus one-time child benefit for the third child and once 375EUR parental allowance). Afterwards, my wife wants to look for a job, possibly also do training as a nursery teacher, as she does not want office work and the business administration master is already 4.5 years ago. Even if my wife does not work, we therefore have around 5,600EUR net every month, without my bonus. When the parental allowance ends in 2021, there will still be 5,200EUR net. Medium term, further salary increases are possible for me and medium term my wife will certainly also earn 800-1000EUR net in part-time. Nevertheless, I calculate everything without my wife’s income.

I found the offer with 1.17% fixed for 15 years very good. What do you think?

Yes, an offer for full financing is okay. Income fits for financing. Finally, a reasonable inquiry.

Don’t you need money for renovation, new furniture, lamps, etc.?

Edit: ok, I overlooked that. But I think €5000 is far too little for the huge place.

Financially overall, of course no problem for you, but better to calculate the renovation cost seriously again.

30€ per month is not a BU!

30€ monthly is not disability insurance!

Yeah, it will be something around 1000 disability insurance, 1/5 of the income

Yeah, it'll be around 1000 BU, 1/5 of the income

No, that's still too high