Finance Single-family house - Feasibility?

  • Erstellt am 2017-10-17 12:09:36

Zaba12

2017-10-17 13:25:46
  • #1
I believe no one can give you a general answer like that.

Some have no problem paying off the house over 35 years, others want a full repayment over 20 years or less. Some manage with €1000 living expenses for four people, others need €2000 for two.

Since we don’t know you and you provide too little information. What are your spending habits and cold rent, savings rate, planned number of children? How do you come up with the house purchase sum? What fixed interest rate period do you want? What burden can you handle including the monthly additional costs of about €400, etc.? An equity ratio of 7.5% with that amount is also not great. Depending on where you live, €5-8k for incidental purchase costs including land register entry with a mortgage of €400k is already gone. So you really only have €22-25k in equity.

How do you come to use your current income as a basis for an assessment like "Can we manage this"?

If children are planned, there are not two full-time incomes. If two children follow one after the other, that situation lasts for about 2-4 years. What about part-time work after that? Spending habits will also change. Depending on where you live, daycare can cost €400 per child per month.

Make an appointment with the bank and get advice, then you will get initial feedback regarding the monthly burden.
 

Zaba12

2017-10-17 13:35:23
  • #2

Doesn't matter, it's still 1500€ according to the above calculation.

My guess is that you will end up somewhere around a monthly rate of 1300-1350€. With 400€ additional costs, that makes 1750€ just for the house. If you want that with 1-2 kids for the next 30 years, then just go for it.

You just have to make sure you can bridge the parental leave of 2-4 years. Because then you will be living hand to mouth....

Sorry, such an amount is only for people with a salary over 5k€. Everything else is madness with kids...
Without kids and with an adjusted lifestyle, that would be perfectly fine.
You can only make it look good with a term of 10 years and 1.5% repayment.
 

stefanc84

2017-10-17 14:05:08
  • #3
Hard but true, what the others are writing. I would like to add that total costs of 400,000€ (or 380 plus buffer) are no longer easily achievable today. For us, only with a lot of own effort.
 

ypg

2017-10-17 14:12:05
  • #4
With a bit more equity, let's say 100000, that would be doable.
 

MIA_SAN_MIA__

2017-10-17 14:28:07
  • #5


hi ,

how is a couple, let's say late twenties, early thirties, supposed to have 100k equity + a certain buffer for unexpected expenses (car,...) saved up? I find that somewhat unrealistic, especially if 1000€ rent has to be paid monthly.

to the OP,
maybe you should consider choosing a relatively low monthly burden but allowing yourselves the right to make special repayments. That way you're more flexible but this right also costs correspondingly more in interest. However, not every bank offers this or only within certain limits.
 

Zaba12

2017-10-17 14:45:48
  • #6


It's possible. Just lower your standard of living.

- Quit smoking
- No more eating out including cafe, bistro, bar, etc.
- No more buying food at the canteen + 2 coffees, but bring everything nicely from home
- Reduce mobile, internet, telephone costs
- Stop impulse purchases
- No Netflix, Apple Music, etc.
- Limit wellness & summer vacation to the essentials (e.g. 2 weeks of camping in a tent)

All of the above we already did this year. That definitely saved us 10k€ without experiencing a personally big loss. But it always involves two people. You also need the woman who goes along with this.



Wrong way!!!
 

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