Financing a single-family house approx. 450k - How to implement?

a little OT: how do 110K € gross per year (minus 15K bonus) and 3100€ net monthly fit together?

I wonder why there is "only" €65k in equity with €110k and a frugal lifestyle. Shouldn't it be more?

Regarding the financing amount, I can only say that the monthly rate of €1000 would be too low for me, no matter how many bonus payments I would get.

When you enter this into a calculator and look at how the interest and repayment are distributed, it makes me feel sick.

a little off-topic: how do €110K gross per year (minus €15K bonus) and €3100 net per month fit together?

It is €60K fixed and then a revenue share. In recent years a little more than €50K. This year it should go considerably better. It all boils down to achieving the lowest possible monthly rate. If in doubt, I can certainly adjust the salary somewhat to increase the fixed amount. By the way, the bonus is paid quarterly.

I wonder why there is "only" €65k equity with €110k and a frugal lifestyle. Shouldn't it be more?

Why "should"? What must? Everyone here is an adult and can do what they want with their money. No one "must" maximize capital. Maybe he simply enjoys life. Or he hasn't been earning that much for long and had to repay a student loan until now. I find this kind of accusatory questions really presumptuous. He has €65k equity. Why not more or less is no one's business here.

So a lot is going wrong with the planning here. Considering the quite decent gross income of over 100,000 euros per year at 33 years old, I assume the house is supposed to be nice as well. However, you have to take into account that your wife currently has no income and you are thus living off one salary. That relativizes everything, of course.

Because then the basic calculation doesn't fit. A house with 150 m² living space and a basement including kitchen/garden etc. will cost you at least 500,000 euros without the land. But you don’t have any major extras in that! Without a basement, you can plan on at least 450,000 euros. Forget your offer under 300,000 euros as quickly as possible. Those are bait offers like on QVC when they try to sell you two Nicer Dicers for 50 euros.

That banks don’t count bonuses is generally true but can vary. Especially in the current times, banks depend on such loans.

I have to be honest with you, I don’t think it will work out with the house like that. I would try to save more equity and just buy the land first. In 5 years then tackle the house building project and set up the project SOLIDLY.

Cheers!

So many things are going wrong with the planning here.

Actually, I didn't want to write about this again, but after some of the posts here, I feel I have to comment.

What exactly is going wrong???

My question was solely about whether financing with a relatively low monthly rate (about €1000) and high to very high special payments (at least €10k, probably €20-30k per year) is possible and feasible. The basic idea is to agree with the bank on both (monthly rate + special payment) as low as possible (based on 30 years), but then finish much earlier (around 15 - 20 years) due to the actual high amount of special repayments.

It’s not about the price of the house (I consider €300-320k for 150 sqm without a basement very realistic just for the house, that’s also shown by the offers not yet finally negotiated so far). Outdoor facilities, kitchen, etc., I can pay in cash from this year’s variable salary portion. This will probably come too late to count as equity for the financing.

It’s also not about the question of why only €65k equity is available.

It’s not about whether my wife has an income or not; she currently has €450 and it will never be less, even with a second child. Together with my fixed salary, it is currently more than sufficient for living.

So if it is indeed the case that the variable salary portion is completely ignored by banks and building societies, that’s okay, then I have to figure out another approach. Buying the land first would be one option. By the time I have to build, I should have accumulated another €100k in equity.

All other comments are really unnecessary.