Evaluation of our financing offer

Hello,

my fiancé and I are planning to buy a house and I would be very grateful for an assessment of our project. Since we are both currently still students, my parents will be co-signing the loan contract for the first 2 years.

General information about you:

[*]Who are you? my fiancé (31 years old) and I (30 years old)
[*]Are there children? no
[*]Are children planned? yes (2)
[*]What do you do professionally? currently both still medical students, my fiancé will graduate this year --> start working from 01/24, I will graduate next year --> start working from 01/25
[*]How many hours do you work? planned both full-time

Income and asset situation:

[*]What income do you have (gross/net)? his income from 01/24: approx. 3300 euros net + bonuses, hers: 1100 euros, financial support from parents until I also work: 1300 euros
[*]How much equity do you have? approx. 320,000 euros
[*]How much equity do you want to invest in the house project? 280,000 euros

Expense situation:

[*]current cold rent: 450 euros
[*]current warm rent: 640 euros
[*]electricity: 45 euros
[*]telephone, internet, mobile phone: 40 euros
[*]other living expenses including insurance etc.: approx. 700 euros

General information about the property:

[*]How large is the plot? 700 sqm
[*]What is the standard land value? 300 euros
[*]New build, old building (year built), house type? existing property, year built 2010
[*] ? 1
[*]How big is the house? ( / usable area) 185 sqm + 80 sqm basement (white tank, fully habitable)
[*]The house has a heat pump, solar system with hot water preparation, ventilation system, air conditioning, SmartHome

Construction or purchase costs:

[*]

[*]Incidental acquisition costs (notary, court, property transfer tax, broker): 67,050 euros
[*]Construction or purchase costs (incl. , ): 710,000 euros

Cost summary:

[*]Total costs: 777,050 euros
[*]Deductible equity: 280,000 euros
[*]Financing amount: 497,050 euros

Necessary loan details:
(for multiple components, provide details for all components, for multiple variants please clearly separate them):

[*]Type of loan (e.g. annuity loan, bullet loan etc.): annuity loan
[*]Interest rate (p.a. nominal, otherwise effective): 3.94%
[*]Fixed interest period: 10 years
[*]Initial repayment rate: 2%
[*]Monthly rate: 2458 euros
[*]Are special repayments possible? (amount to be specified) up to 25,000 euros/year

We have approximately the same loan amount for our house.
The income situation is similar.
I have 3,200 and she 2,300.
We were at the bank last week and were offered a loan of 300,000 euros at an interest rate of 3.69%.
The remaining 200,000 are supposed to be covered by a cheaper loan from the KFW.

About you:
Equity is really very, very high. Probably not all saved by yourselves, but that takes you a good step forward.

Regarding the income situation:
Your salary prospects in the future are probably very good; I consider a loan for 2,500 euros in your current situation difficult.
Sure, you have a small apartment with low rent, but at the moment 2,500 euros is really a lot of money for you.

What if you wait another year to see where both get a job and have found a place to settle?
I don’t know how it looks after medical school. Do you get a position in the area?

I didn’t even know that a bank would agree to something like that (future earnings).

Congratulations on having such a high equity!

monatliche Rate: 2458 Euro

ca. 3300 Euro netto + Zuschläge, sie: 1100 Euro,

Pretty ambitious!
What happens if your salary disappears again because of children?
700€ living expenses alone won’t be enough, including insurance and mobility?! The additional costs for a house are also around this amount…

my parents would initially cover 1300 euros (about half of the mortgage payment), so we would only have a monthly burden of about 1200 euros. My boyfriend already has a job prospect, we will stay here. Due to our future work situation, the location of the house is perfect, since my parents live only a few houses away. The house matches 99% of our expectations, if that were not the case, we would definitely want to wait another year.

with future doctors that seems to be possible, but basically my parents are also on the loan contract and they also have an income to show. Parental allowance is initially 1800 euros for me and my boyfriend's salary increases every year; possibly the parents would also support us again during that time. We have 2 cars, the insurances etc. are paid by our parents, fuel costs are quite low because we ride our bikes a lot. But of course living costs increase in the house. With a total income in 2024 of at least 4400 euros per month and half the loan installment of 1200 euros, 3200 euros should be sufficient for living, I think.

my parents would initially cover 1300 euros (so about half of the mortgage installment), so we would only have a monthly burden of about 1200 euros. My boyfriend already has a job prospect, we will stay here. Due to our future work situation, the location of the house is perfect, as my parents live only a few houses away. The house matches 99% of our ideas, if that were not the case, we would definitely want to wait another year. with future doctors that seems possible, but basically my parents are also on the loan contract and they also have an income to show. Parental allowance is initially 1800 euros for me and my boyfriend's salary increases every year, possibly the parents would also support us again during that time. We have 2 cars, the insurances etc. are paid by our parents, fuel costs are quite low because we travel a lot by bike. But sure, living expenses rise in the house. With a total income in 2024 of at least 4400 euros per month and half the loan installment of 1200 euros, 3200 euros should be enough to live on, I think.

So if your parents are offering such financial support and the house is so well located, then I wish you good luck with the house purchase :)

Ultimately, we are talking about many eggs not yet laid. Currently, you do not have your real living expenses when the parents pay for much. The salary will also be different than today. A real assessment is therefore difficult. Basically, it should be possible for two doctors to manage financing with 500k, even with 1.5 salaries. And on the used market, you can also get worse than a house from 2010, which apparently was also fairly well equipped. If proximity to the parents is an important factor and the price otherwise fits...