Johannes2307
2024-05-15 16:27:51
- #1
Hello dear forum,
after receiving many valuable suggestions here, we have actually stepped away from our plan A) see page 1. We are no longer looking for a two-family house.
Instead, we are looking for a terraced house, semi-detached house, or a single-family house. In the meantime, we have conducted many viewings, learned a lot, and have now found a property that appeals to us and has triggered a certain "must-have" desire. That was the first time I felt that purely based on gut feeling with a house and plot, which was definitely interesting. Unfortunately, the property is certainly at the upper end of our financial capacity.
Seller’s asking price: 750 TEUR. Plus incidental costs, we end up at 820 TEUR.
Recap about us very briefly:
We (man, woman, baby) calculate with a household net income (husband’s fixed salary plus child benefit) of 7,250 EUR and equity that has meanwhile grown to 325 TEUR and will be fully used. Bonus, wife’s part-time salary, or parental allowance are disregarded as they are not certain.
The plot:
580 sqm in a good location, hence standard land value between 800 and 900 EUR per sqm --> it alone should be worth around 500,000 EUR.
The house:
Solid construction, 140 sqm living space and fully basemented, built in 1986. We liked it.
Energy efficiency class E. However, with a calculated TEUR 250 not unfairly priced either.
There are already concrete things to do immediately after purchase, which will cost at least TEUR 60 (measures on the facade and windows).
Against the background of the very valuable standard land value mentioned above, I actually find the owner’s price expectation justifiable, whether we can afford it is another question.
Overall, we end up with a total project budget of TEUR 880.
Ongoing costs (taxes, dues, electricity, heating, water) plus maintenance reserve of 1 EUR per sqm amount to a hefty 850 EUR per month.
So we would need a loan of 555 TEUR.
In our household calculation, I trust we can manage it with 3.5 % repayment, which is a rate of about 3,250 EUR per month.
Special repayments could be added on top if, for example, a bonus works out.
For living, we would then have:
7,250
- 850 ongoing costs
- 3,250 installment
= 3,150 EUR.
That should actually be enough for our normal needs. With around 1,600 EUR we usually manage for the rest.
Still, it already stresses me a lot mentally. Am I too much of a scaredy-cat?
Best regards and many thanks in advance for your and your comments
I don’t understand your approach: on one hand very cautious (although a great starting position) and on the other hand high repayment. I would first go in with 2 or 2.5 so that you manage comfortably monthly and solve the rest through special repayments etc.