Financing option - Assessment - New construction

Your net income is not 6k. The private health insurance (PKV) is missing. Although it is listed in your expenses, the amount would need to be known. Only then do you have the actual net income...

The outstanding debt behind the loans would be interesting. With KFW, there is still a significant amount left after 10 years. How does the large loan look after 30 years?

I think 600k is too much for your income. The rate of 1,900 can only be managed with a low repayment rate, which means you will have a high remaining debt at the end.

Positive are the equity and salary at your age. This will increase over time. As mentioned above, I would put as much as possible on 30 years. KFW only if you get a repayment subsidy, otherwise leave it completely. Yes, the interest rates are low, but only for 10 years. Compared to the 30-year loan, it loses out.

I think at the beginning, one salary will go entirely towards the house (rate + additional costs + reserves).

Edit: Instead of option 1, do the entire 600k on 30 years. If you get an interest rate of 1.25% with 2.5% repayment, the rate is about 1900€. Then you have complete security and can plan better than with KFW. In 10 years, the 1,900€ will feel like 1,300-1,400€ thanks to inflation and salary adjustments...

Hello everyone, thank you very much for the feedback and suggestions. I’ll try to go through the individual points:

I'm not a financing expert, so just a superficial question from me: if children are planned in the medium term, how will your income change? Is the childcare arranged in such a way that you can both quickly return to full-time work? Do you even want that? Is more than one child planned and how will the childcare work then? If not both parents are back to full-time work for all children after at most one year, I would immediately calculate with the lower income in the back of my mind.

What does the remaining debt look like in each case? Basically, I would tend to option two. But personally, the situation would be a bit too risky for me if there is a temporary loss of income.

That is a good critical suggestion and inquiry. We have already thought about salary loss & childcare. The available income alongside the installment and expenses will be deliberately saved up by then to build a certain buffer. But it is also clear that my wife will return to (part-time) work after parental leave. Of course, everyone has their own opinion on this topic, but that is a different discussion. Salary increases are quite realistic for us in the short or long term and may provide a buffer.

The 1.25% for 30 years sounds almost too good to be true to me given the conditions. Where does that come from? If you can, I would take the KFW153 and €480,000 for 30 years at 1.25%. I believe the chance that a follow-up financing will be significantly cheaper than 1.25% is rather low.

I don’t know if I’m allowed to name the bank here. It comes from a current promotion "30 years of interest rate security at conditions of 15 years." But honestly, I was also positively surprised by the good interest rate. The suggestion sounds good and goes in the same direction as . I will inquire like that. Thanks!

That is a valuable hint. At the same time, at the end of your 20s you are usually quite far from the peak of salary development. Depending on how your career develops and what prerequisites it is based on now, an increase in income can easily compensate for the loss of part of the income due to a break or part-time work. You should definitely consider that.

Nothing is certain anyway; we could fall over tomorrow. From conversations with older people, I have gained the impression that people regret more what they didn’t do than what they did. If you fall on your face, you just get up again. If you never start, you don’t experience anything. Often it’s good to turn the gut feeling a little louder without switching off the head.

To me, all that sounds quite doable. It’s probably a matter of personality.

I am an optimist and pity pessimists, as they allow themselves little anticipation. My wife is a pessimist and pities optimists, as they are hardly ever positively surprised.

Thanks for the quite positive feedback! We feel similarly – I would classify us more among the optimists

Does your net income of 3000 euros still have health insurance deducted?

Best regards Sabine

For my wife, the private health insurance is still deducted, yes. See "expenses per month."

I don't know if I am allowed to name the bank here. Comes from a current campaign "30 years interest rate security at conditions of 15 years".

Please name it! Thank you! mini

You have already had the promotion, the only disadvantage was the long processing time, which is no surprise since the conditions are good.

Therefore, if you want to proceed with this plan, I would take the full 600k at 1.25%...

Therefore, if you want to do this project, I would take the 600k completely at 1.25%...

Personally, I probably would not want to forgo the Energy Efficient Building subsidy. It's at least 18-30k.
Plus a few thousand saved through lower interest.
Also, the question is whether you would even get the conditions if you give up on KfW...

Hello is feasible, however the belt is tightened very tightly with children