Financing a house alone or already building/buying one!?

This is not a common formula but nonsense...

I have never heard of that in my 25 years as a real estate financier. Why not 109 times? What if you pay alimony (for example, about €30,000 go towards that every year in my case), have other debts, or perhaps earn most of your income from freelance work?

Okay, I expressed it incorrectly. The 108 times the net income minus liabilities/loans. Why it is 108, no idea. The financier from Kampa told me that yesterday.

I know a similar rule of thumb with car financing. At a major European bank in this area, it says: Financing up to 15 times the monthly net income is approved without further checks.

Why it is 108, no idea. That's what the financer from Kampa told me yesterday.

He can't tell you the reason either, because for that the number 108 would have to have some basis, which it doesn't.

I know a similar rule of thumb for car financing. A major European bank in that area says: Financing up to 15 times monthly net income is approved without further checks.

But there we are dealing with a completely different product (just like with furniture store or electronics financing).

It is a first point of reference, just like the €2,000/m² as construction costs. The value should not be taken at face value, it depends on many individual circumstances and is still okay for initial estimates... I think didn’t want to express more than that.

Is the 100-fold perhaps less "arbitrary" and more acceptable to you? Because I have read that quite often as well.

Well, the "banks" certainly do not proceed like that, I can assure you from my professional experience. Maybe this is a rough calculation aid from the forum, but it is not reasonable.

With an income of 7.4k, 750k is easily feasible. There still remains well over €4,000 for living expenses. You would have to have an immensely high standard of living not to manage that. And that with 4%, mind you. The usual rate is actually 2-3% for most.
The 100 times is generally quite accurate. If someone can and wants to make compromises, more is possible. If someone still wants to go on South Sea vacations and drive an expensive car, then not.

Hm. That’s simply nonsense. For example, I am privately insured. Because of that, my net income is correspondingly higher – on the other hand, there are the private health insurance contributions. Furthermore, I drive 35,000 to 40,000 km per year for work. The monthly costs for a car amount to around €1,000.

A blanket multiplication of household income by a factor X is the biggest nonsense I have ever heard. Ultimately, household income says absolutely nothing about the ability to service capital and thus creditworthiness.

By the way, anyone who structures a construction loan with an annuity of 2-3% is lost if interest rates rise in the future. Even a calculation with 4% is very risk-taking.

Maybe this is a rough calculation aid here from the forum, but it’s not really useful.

I marked it, you said it yourself. It’s not supposed to be more than that. I don’t know what the problem is!?

Ultimately, household income says absolutely nothing about debt service capacity and thus creditworthiness.

Uh, if not income (plus many other factors, no one denies that!) then what else should be considered? The hair color of the mother-in-law of the second cousin of the childhood friend? I work in the construction sector, not the banking sector, but I assumed that creditworthiness is checked (among other things) by Income - Expenses = Loan payment => Credit limit

I am in the construction sector, not in the banking sector, but I assumed that creditworthiness is checked (among other things) by income-expenses=loan installment=>credit limit

Exactly. And if you disregard the factor "expenses," how do you want to calculate a loan installment, let alone a credit limit?

Household income
./. living expenses
./. other regular expenses
./. special individual expenses
./. future calculable positive and negative changes (elimination of rent; new operating costs; loss of income due to parental leave, etc.)
= surplus coverage

Surplus coverage = debt service limit = maximum possible external capital borrowing