Financing a condominium with a salary

Does a young woman and student really want to tie herself to a property for the rest of her life? I know some examples who have taken exactly this path and have, so to speak, made the second step before the first. Unfortunately, it all went wrong when it became clear that maybe something was or already has been missed. This is not meant to sound smart-alecky, and there is no guarantee that the order in the conventional variant of study-wedding-children-house, as in my case, will work out.

my husband


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This year, however, we bought a new car (€30,000 without credit), although we actually didn't want to buy anything yet, but now this apartment is really perfect.

The original poster is obviously already married and the apartment search was quite loose, hence the car purchase. Still, of course, it's bitter now.

I also view the apartment purchase critically in your case since it is not yet clear where you will go during/after the legal clerkship?

With civil service status (A12/A13) you can usually afford double household maintenance financially well with a small apartment, but depending on the place of work it may not be a permanent solution? I also think you have to stay at the assigned school for a few years?

As nice as the apartment may be, maybe better to finish your studies first to be on the safe side.

By then there will be more equity and higher income, the employment question might be resolved and you will surely find an even nicer (= more expensive) apartment that you can also afford more easily if you want to.

I don’t know how it is in BW regarding teaching positions, but here in NDS the likelihood of ending up at a school you don’t want to go to is more of a theoretical one. With some subjects more than others, but you can pretty much always find something that’s reasonably manageable in terms of commuting.

If you plan to buy an apartment or house, you shouldn't afford a car for 30k. With that salary, I don't see that either... But that's just my personal opinion.

As I said, a house/apartment was planned for a later time. We didn't want to buy an old car again, where you never know when it will need repairs again. We didn't take out a loan and haven't spent all our savings, so we still have reserves.

Basement apartment: Those were also our thoughts/concerns, that the apartment in the basement might not be legally allowed to be rented out. We have a conversation and viewing coming up soon, then I want to address that.

So we informed ourselves a bit beforehand. The upper apartment was already sold some time ago by the owner of the house and now he wants to sell the rest because he is moving out. The upper apartment is rented out and we know the landlord vaguely.

We have been married and together for a few years now. We live in the countryside and no one wants to go there. The chance of getting your desired school is VERY high. That's what they told me at the RP. The headmaster from our town already offered me a spot as soon as I have to start the teacher training. We also said from the beginning that I will be the commuter and we will coordinate according to his workplace.

Thanks for all the answers. You have also understood our worries and thoughts well. We will take a look at the apartment and see if it would really be something for us. And a consultation at the bank, of course. The worst we can get is a no. Then we would just continue according to plan and buy or build later. I just wanted to hear a few assessments regardless. Can't hurt to hear some experiences :)

Granny flat: Those were also our thoughts/concerns, that the apartment in the basement may not be legally rented according to building regulations. We have a meeting and viewing soon, then I want to address that.

So we have already informed ourselves a bit beforehand. The upper apartment was sold some time ago by the owner of the house and now he wants to sell the rest because he is moving out. The upper apartment is rented out, and we know the landlord vaguely.

Yes, then it doesn’t look bad. But first clarify everything regarding the homeowners' association! I currently see the biggest sticking point there. Possibly there will be additional costs. In a 3-family house, the simplifications in renting and ancillary costs that would be possible with a pure granny flat also do not apply.

So, about the constellation as such: yes, it is basically possible with only one income. It was the same for us. Husband working shifts, net income like yours, also thanks to tax class 3. Plus extra income from holidays, Christmas bonuses, vacation pay, one-time payments, which are not included here (and shouldn’t be). I was fully retired back then with 150 euros full EU pension. So more like pocket money. We had 7,000 euros in equity, which was enough for the additional purchase costs. Thus, it was a 100% financing, total volume 210,000 euros (139,000 for the house, 10k for "Modernisierung" and 60k KFW renovation loan). The 149,000 for the house were also split again into 50k KFW home ownership program and 99k normal bank loan, mixed interest rate fixed for 5 years ("are you crazy??") 2.5%. I’m mentioning this because I don’t know to what extent the composition of the components influences the banks’ loan approval (different evaluation criteria?).

That was in 2012. After 5 years, we already did the first follow-up financing because the fixed interest period expired and radically changed everything. We terminated both KFW loans (due to bad interest rates) and consolidated everything into a new loan at another bank at 1.4% fixed for 10 years. Total volume 180,000 and the house value meanwhile had risen from 139,000 (initial valuation) to 235,000 (valuation by the new bank). Loan-to-value therefore only just about 77%. In 2017 we still had the same constellation single earner/pensioner, but this time with tightened mortgage credit guidelines. It still just worked out (under the new guidelines, kids are simply assumed even if there are none and none are planned, and you have to be done with the loan by retirement – haha, for me). We agreed on 3.25% repayment back then and it worked out mathematically (the rate was 697, meanwhile we increased repayment to 3.75% because I am working now).

For you, the rate is a bit higher, but the interest rates have gotten lower, plus the credit guidelines have been relaxed again. It may balance out. However, we had no ongoing loans back then. Or is your car paid for in cash? Unfortunately, I can’t recall right now.