Financing at the house bank - Offer evaluation

The topic of saying goodbye to the boss tomorrow ended the day you start a family. Once you have a child, you don’t just do that casually anymore. No matter what kind of financing or whether it’s rent.

No, that’s not the case. I know plenty of fathers and mothers who have done exactly that. They worked in caregiving, retail, or hospitality. Do you know why? Because they all knew that 200 meters away they would find a job with equal or even better pay or at least better working conditions.

Try that now as a well-paid engineer at the OEM. I’ll tell you: except for a few niches, there’s a hiring freeze everywhere. Outside of internal transfers (for which you first have to be qualified), the opportunities quickly become very limited. It’s just not the case that you get the salary everywhere.

I would also switch at any time if I were no longer satisfied with my employer or boss. The same applies to the content of my job. This form of independence is a luxury for me that, at least as a mid-thirties family man, should not be given up lightly. At mid-fifties, it might look different.

I’ve traveled a bit and know some industries. Yes, there are sluggish industries. Utilities, insurance, banks. Jobs there are relatively secure. The same goes of course for doctors, civil servants anyway, etc. Nevertheless, there are also changes and negative surprises there. Industry is the most cyclical of all sectors. The gas pedal goes up faster there, but in a crisis, conversely, it also crashes deeper and faster. Large companies have so far cushioned this with their financial strength. I wouldn’t feel comfortable relying 100% on that going forward either.

30 years ago, there was already telephone. Sometimes people spontaneously rang, sometimes they called or arranged to meet at school. The important thing was that you were not driven there by the parent taxi, but left the house on your own. But if, as a parent, of course, you want a private school somewhere or put your child in a Chinese course or whatever because the offers from the local music club, football, etc. are not enough for you. Well, then maybe I really have to play taxi. But it is not the case that such a life across all social classes is common, especially not in families with many children. And to conclude: streets and traffic also existed 30 years ago. We are not talking about the 1950s here.

Good morning everyone,
thank you very much for the lively participation in this thread. Unfortunately, I haven't had time to respond in the last few days. Too much stress at the OEM ;) . Joking aside, I understand the objections. Regarding the question:

What bothers me critically is the large income difference. Could this possibly also be due to tax classes?

Among other things (tax classes 3/5). I haven't been in the job as long as my husband because of studying and training. In addition, a company pension scheme is deducted from my gross income, which also amounts to about ~150€.

We are both not the types to sit comfortably in a safe job. We like to work and are passionate about what we do. And therefore I do believe that we could find a position elsewhere. Teaching, for example, wouldn't be so unlikely with my CV. Nevertheless, we (like I think many here in the region) are aware of the dependence on Audi. Even if you don't work there, the saying still applies: "When Audi coughs, Ingolstadt has the flu."

When our house design is finished, I will present it. I don't consider it particularly generous, but maybe that's misleading. As far as financing is concerned, we will probably have to reshuffle the cards again in a few months. Interest rates are falling and the KfW funding will probably be discontinued, making the presented financing plan virtually obsolete :/

s As mentioned by another participant, a rate of 2xxx is usual, that’s not the issue now. As long as it stays with one child and you live frugally and can additionally save into stocks alongside the rate, I also see your Audi concentration risks adequately hedged. But then with 175m2, it remains a very lavish living space for 3 people. You can afford that, but then you work for the house and have to restrict yourself elsewhere. That is comparable to a sporty Porsche. You could afford that too. It’s not really needed, but it’s a nice toy. Just like a sixth room for 3 people.

It’s different with 2 children. Then the size also makes more practical sense. But financially it becomes tighter with increasing burden. But even with 4 children, 175m2 is still the Audi, to stay within the VW group. Only this Audi is rather harder to finance than the Porsche in the 1-child example. You could make it easier for yourselves and reduce risks if the VW would also do. Still a good car, but no longer upscale. You don’t even have to go down to the Seat.

As I said: it’s not per se about the financing being feasible. It is. It’s about how it is feasible. And there, with 2 children, you rely on 2 almost full-time jobs and a rather short parental leave with the current salary level, to avoid making extreme sacrifices elsewhere. That might still work, but then at the latest the question would arise why you put yourself through that. With a somewhat lower rate or otherwise the same rate with more invested but liquidable assets in reserve, which can be accessed if needed (my preferred solution as it’s more flexible and better suited for liquidity shortages in the particularly critical first years), you have a significantly better freedom in choosing your lifestyle.

Have you compared how much interest you will pay over the term, until the house is completely paid off, with a pure annuity loan? Simply compare your offer from the house bank with another one from Dr. Klein only as an annuity without a home savings contract and kfw.