Feasibility: Purchase of single-family house / semi-detached house 450,000€

Good day,

My partner and I have been living in a 2-room apartment for three years and have decided to dare to buy a house. However, we have not yet found the desired property.

About us: We are 31 and 30 years old and both have secure, permanent jobs (for 4 and 2 years respectively). She earns €2400 net, I earn €2500 net. Additionally, there is a 13th salary each. We save at least €1500 monthly, i.e. we save about €20,000 per year. We pay about €1000 monthly for our apartment including all expenses.

Current equity:
- Savings account: €25,000
- Stocks: €5,000
- Invested money, which still runs for three years but can be accessed if needed: €25,000

Children): planned soon.

Our plan: We are targeting houses worth €400,000 - €450,000.

- What credit limit would you recommend to us?
- What amount would be maximally reasonable without having worries?

Thank you very much and best regards
Max

From the gut, I would recommend you to limit the construction sum to max. 350k.

With a loan amount of 400k EUR, you would have to pay a rate of approximately 1,650 EUR with an interest rate of 2.5 % (20 years fixed interest) and a repayment of 2.5 %. The term would then be about 28 years with a constant interest rate. In addition, there are ongoing ancillary costs and maintenance reserves, so a total of at least 2,000 euros per month.

Whether this burden suits you can only be calculated by yourselves by adding up all monthly expenses, liabilities, etc., and calculating the expected costs for children as well as any resulting loss of income.

From gut feeling, I would agree to rather plan in the range of 300k-350k EUR.

I would also like to join in because the woman rarely and rather out of necessity works full-time. So you only have 1/2 income plus child costs. You should plan seriously here. As a comparison, we have a rate of €1100 and an income adjusted for private health insurance of €4000 net with child benefit.