Hello, and thank you very much for your assessment.
After searching for 3 years for a house purchase / new build, we are now finally in the process of realizing it; the new build starts in August.
The most important thing for us has always been that with our salary / equity / and additional income we have a solid basis without ever getting into trouble... (even if there will be children later on).
Therefore, our budget plan was also recorded in great detail with the financial advisor. Otherwise, we would not have started the project if we could no longer pay the house in 3 years.
You write purely that the salary / loan will not be healthy... well, that may not seem feasible to you at first glance... Well, our budget plan says otherwise... and even with my wife’s pregnancy and a salary reduction of 60%, that would initially still be manageable without any problems.
We definitely have not planned to use every drop of equity for the house, but rather have some reserves left to bridge exceptional situations such as unemployment, longer service interruptions, etc. without problems for a longer period.
The financing is now also with KFW-153 funding, since the house meets the KFW 55 standard.
Single-family house – 175m² with double garage / turnkey / plot 566 m²
285,000€ loan – construction financing at Allianz
120,000€ loan – KFW bank
120,000€ equity
-------------------------------------------
Term 30 years, full repayment at approx. 1290€ for both loans combined
It's a pity that to some it seems as if our house plan or loan plan is foolish... but believe me, my wife and I are the last ones to want to start something reckless.
We both have full-time jobs we love, every cent is earned sensibly... Sure, all that is not really paid as one imagines... but it would really be a shame for Germany if two professionally experienced people could no longer afford their own home...
(and as info, I started school at age 5 (in Bavaria) and attended school for 10 years and achieved a Realschulabschluss)
I believe you are mostly wrong here, no one really envies you anything. You should rather be happy about persistent critics than about backslappers who then buy your house cheaply if you fail. Ultimately, you can and must decide alone but sometimes also have to cope with very painful consequences. Many people remember their own experiences, including myself, unfortunately.
You are supposed to be brave, and if you want that, it will probably work out, even if harder times may come.
But you write somewhat euphorically that you have secured everything in advance and would master virtually every situation. THAT, precisely THAT makes me suspicious, because in the end you know very little about WHAT is coming your way; usually quite different from what you think.
Whether you do the job with love or whether the cent is sensibly earned or found makes no difference for the bank in the worst case. After 25 years, my house bank wanted to shut me off; it felt cold to me because I had also believed in words like “house bank,” 25 years as a regular customer, secure job, etc., the answer was no.
I then helped myself with unconventional decisions and eventually turned it around again, also due to rising real estate prices. But it could also have ended differently.
A €405,000 loan is a package, there is no doubt about that, and that it is a shame that “two professionally experienced people could not afford a home” merely follows an understandable but pious wish.
You will manage it for sure, but people are not against you, don’t confuse that. Backslappers don’t pay your debts later......