Financing a single-family home beyond retirement?

Whether 1100 EUR is enough can only be shown to you by your own self-maintained household budget. I find it too little. Your other savings (250€ per month + 13th salary + vacation pay + tax refund of about 6000€) will be spent on a family vacation, special expenses, and building reserves for, for example, a new car.

I would really recommend to anyone who wants to build to keep a household budget over a longer period (at least 1 year). And do not exclude special or one-time expenses (car repair, new dryer, children's class trip, etc.). That is deception. These special expenses always occur and belong to normal life. Then in 2 years it is not a new dryer again but, for example, new winter tires/laptop/great grill/other household appliance or whatever.

On average, we spend just under 1700 EUR for 4 people (2 small children) on food, drugstore items, consumption (so all clothing and other expenses, whether a birthday present or a new toaster), leisure activities (admission fees, eating out without the canteen). We don't really pay attention to our expenses (so we don't actively save, but have been keeping an accurate household budget for years), but to get by with 1100 EUR and one more person we would have to restrict ourselves to an extent that I cannot imagine.

However, of course I cannot assess what additional "special budget" you have besides the 1100. So it might already be sufficient. But you know that best with a household budget.

Greetings, thanks a thousand for the many answers. Crossy, what exactly do you mean by Sonderbudget?? In "all costs," for example, 150 euros per adult are also planned for discretionary spending.. Whether the woman buys a dress or the man goes to football is what is meant by that

I am unfortunately unable to make a valid statement about personal living expenses, but financing up to retirement age is no problem.

So 150 EUR per adult in addition to the 1100 EUR?

Yes, that’s what I mean by special budget. Everyone groups and budgets their expenses differently. I just came up with the following classification for my household book: 1. Groceries 2. Consumption (clothing, all Amazon and co purchases, decorative stuff, small purchases for the household, etc.) 3. Drugstore 4. Going out/leisure activities (admission fees)/eating out (excluding canteen)/sports club, etc. 5. Fuel 6. Insurances 7. Electricity/water/GEZ/phone/mobile/Netflix/other (entertainment) subscriptions 8. Cash (cash withdrawals that disappear into dark, untraceable channels) 9. Vacation 10. Mortgage

The 1700 EUR are then for me category 1 + 2 + 3 + 4 + 8. So generally speaking, daily necessities expenses.

And I strongly assume that the 1700 EUR will continue to rise. The children are getting older and cost more. Besides, I see myself that over 3 years on average we have spent more like 1500 EUR, call it price increase or "consumption habit." At least it won’t get less.

I unfortunately cannot make a valid statement about personal living expenses, but financing up to retirement age is not a problem.

As someone "affected," I would be more nuanced. The bank would still give me loans in retirement, so that's okay. The question is whether I can already largely overlook my income in retirement, or what happens if something comes up. Basically yes – but you really have to be brutally honest with your calculations and realize that you have to keep it up like that your whole life from now on. Basically, if possible, I would tend to a version where I am debt-free in retirement and can then enjoy the benefits of rent-free living with a possibly modest pension. Maybe build smaller or elsewhere.....?? But as so often, there is no right or wrong here either. Euphoric calculations usually come back to bite you at some point.

I also always find the period of 20-25 years dangerous. Many homebuilders have no children or no children yet. In about 20 years, children who are often in training or studying will really cost a lot of money. At the same time, initial (cosmetic) repairs on the house may become due. If that then coincides with retirement (even with a good pension, income will usually decrease somewhat) it can become tight. Not necessarily so tight that the house is in danger, but still enough so that the new retiree may not be able to enjoy their gained free time as much as they want. I would therefore avoid having children's education + additional house payments + reduced income from retirement all coincide.