Finance and buy or continue renting in the Stuttgart area?

You have saved 34k per year over the last two years - thanks to Corona. What was it like before? Why do you have so little equity with a good salary? Hypothesis: Corona took you out of your normal spend-money-with-open-hands lifestyle and inevitably made you a saver. Now you have a little something set aside and think a garden would be nice. Otherwise, I can’t understand how you managed to save so little with almost no rent.

The question you should ask yourself, in my opinion, is the following (we now assume that Corona is over and everything is opening up again)

Do you enjoy the lifestyle in your shared apartment? Are you the party person who likes to spend money? Do you always take the convertibles from the OEM at 1%?

If the answer is yes, then better keep renting. You’re more flexible and much freer!

Oh, quick PS: You are very, very far from "civil servant status" at the OEM.

Interest payment = usage fee like cold rent
Repayment performance = loan repayment = in your case €56k in five years = if you were to sell in five years at the former purchase price, you would have €56k cash in your pocket after repaying the loan. But since you had incidental purchase costs of €35k at the beginning, a surplus of €21k remains

Understood, thanks for the explanation. I should also build reserves for maintenance during the 5 years to get a complete picture, right? How much is usually allocated for that in a new build?

You saved 34k per year in the last two years – thanks to Corona. How was it before? Why did you have so little equity with a good salary? Hypothesis: Corona pulled you out of your normal big-spending lifestyle and inevitably made you a saver. Now you have a little something on the side and think a garden would be nice. Otherwise, I cannot understand how you could save so little with almost no cold rent.

The question you should ask yourself, in my opinion, is the following (we now assume Corona is over and everything is reopening)

Do you enjoy the lifestyle in your shared flat? Are you the party person who likes to spend money? Do you always take the OEM convertibles at 1%?

If the answer is yes, then better keep renting. You are more flexible and much freer!

Oh, quick PS: You are far, far from "civil servant status" at the OEM.

Hi askforafriend,

many points. I will try to answer a few. I have not had this salary for ages, if that is your assumption. Five years ago I started at the current company with an annual salary of €53k. In the 2nd year it rose to €60k. After 2.5 years I switched to a new position within the company (was lucky and at the right place at the right time) and my salary rose to €88k, last year to €96k, and this year it will be €105k (of the 105k, €4k are variable).
That Corona certainly had a share in the savings rate, I have already mentioned and am aware of. That I only have €100k equity is your interpretation. (€100k is the maximum equity I want to put into the apartment). Could it have been more? Certainly. Could it have been less? That is also conceivable.

Party lifestyle – I don’t think I do more than other people my age, but that’s also a matter of opinion. If I were still enjoying the lifestyle in the shared flat, this thread probably wouldn’t exist. Priorities change in life – and accordingly also the spending situation. Will I still save €34k in the next years without Corona? I don’t know. But I don’t want to spend €2800 for the apartment either.

By the way, I never claimed to work at the OEM. I am very far from the automotive industry.

PS: about the car. I get a new car every six months. Unfortunately, I have no influence on that, as it runs through the Sixt company leasing. Currently, I drive a VW – no convertible. A smaller car would actually be enough for me… but this special wish cannot be fulfilled for me due to the contracts being fixed (with Sixt, you don’t choose a model, but a vehicle class).

Regards

Great – I’m glad if I could give you one or the other food for thought – hope that helps you a bit further

Then I expressed myself incorrectly. My total gross including 14 salaries, vacation pay + bonus is 105k. Sorry for the misunderstanding.

How much is that currently net with tax class 1?

Therefore I want to finance the apartment alone. Without family etc., the property would be more than enough for me.

That first has to be decided by everyone for themselves. As your girlfriend, I might not remain your girlfriend for long if you make such a solo move – after all, you are both at the prime age for nest building and procreation. You don’t really make great experiments there anymore if you plan on having a family. But luckily everyone is different. Maybe she also enjoys being a guest in your new apartment, keeps hers, or is completely fine with moving into your place together.

There was once a user here who clearly said: my house, my pearl (wife), my rules. She was basically just his appendage, allowed to enjoy herself there because of that. If something no longer fit, she was allowed to leave.

What confuses me is that you do name your girlfriend here, but from the wording of the explanation you seem to plan more on the singular.

I would probably have rather considered the option of living together first, so that you can basically grasp the goal more clearly to see where it’s going for both of you, because the variable is that it could end up that the togetherness doesn’t work.

Often, another factor regulates the consideration: it might be that you cannot get your financing alone. I don’t really believe it, but we are not in church. Banks like the security of two earners.

What do you do for a living? (M) Team leader in project management, (F) clerk at OEM

By the way, I never claimed that I work at the OEM

Interesting... How should this be understood now? True, (F) is at the OEM. ;)

How much is that currently net with tax class 1? Everyone has to know that for themselves first. As your girlfriend, I might not be your girlfriend for much longer if you make such a solo move – after all, you are both at the best age for nest-building and reproduction. You don’t make great experiments then if you are planning a family. But luckily, everyone is different. Maybe she also enjoys being a guest in your new apartment, keeps her own or is completely fine moving in with you. There was once a user here who clearly said: my house, my pearl (wife), my rules. She was basically only his appendage and was allowed to enjoy herself with him for it. If something no longer fit, she had to leave. It irritates me that you name your girlfriend here, but from the words of your explanation, you plan more in the singular. I would probably consider living together first so that basically you can grasp the goal better, where it goes for both of you, because the variable is that it can turn out that living together doesn’t work. Often another factor regulates the consideration: it might be that you can’t get the financing alone. I don’t really believe that, but we are not in church. Banks like the security of two earners.

Hello ypg, that is a very very good point. And I am also handling this topic very sensitively. I have already discussed all this with my girlfriend. If we move in together into the apartment, then I don’t want any rent or anything else from her. Therefore, it is really important to me that I can manage the apartment alone. How would you solve the topic? Rent together at first? My concern is simply that after 2 years prices will have risen so much and I will regret it afterwards. In general, we are aligned on this point and she apparently has no problem with it. That she would feel like my “appendage” in this case – I don’t believe that. But really good point, I will definitely think about it again and talk to her again. With tax class 1, that is about €4700 monthly. But the car is still deducted with the 1% rule (about €240 monthly).

Interesting... How are we supposed to understand that now? That’s right, (W) is at the OEM. ;)

What is your question? What do I do? We manage PMO topics for different projects of the company.