Financing options for a rather high-priced single-family house

Interest on loans for rented properties is deductible as income-related expenses within the framework of V+V – however, interest on loans for owner-occupied properties is not. Since these are already unencumbered properties, you should discuss this with the tax advisor.

And that is the core problem! The property is already owned and unencumbered. The tax office looks at this very closely and rigorously disallows the interest if it is not related to the property. And it is not. The capital was borrowed for the purchase of owner-occupation.

Good evening again,

things are slowly becoming a bit more concrete. We now have the opportunity to look at a promising house. We also sat down again and compared income and expenses and are a bit perplexed that the €1700 payment won’t be quite that easy.

Here is the calculation, maybe you can say something about whether this is calculated too cautiously:

Income:
Salary: 4600
Rental income after income tax: 1000
Child benefit: 408 (planned 2nd child)
Photovoltaic system on rental house after tax: 150
Total: 6150

No 2nd salary planned (+~€1000 part-time), no salary increase, no tax class 3 for me as sole earner.

Expenses:
Loan payment: 1700
1st child: 800
2nd child: 800
House additional costs (max. 200sqm living space * €4/sqm incl. electricity, gas, water, waste, property tax (1000sqm plot), etc.): 800
Groceries: 600
Vacation: 500 (important point for us, non-negotiable)
Reserves rental houses: 200 (€1/sqm living space)
Reserves own house: 200 (€1/sqm living space)
Car reserves: 150 (repairs / new purchase)
Fuel: 70
Car insurance + tax: 50
Bahncard 100: 300
Appliance reserve (washing machine, dishwasher, ...): 50
ADAC: 11
Spotify: 10
Internet / GEZ / TV: 60
Liability insurance: 2*7 (not married)
Household contents insurance (for larger house): 15
Mobile phones: 40
Donations: 2
Total: 6300

In addition, hobby costs are not included in expenses because we rather have hobbies where expenses are sporadic and unpredictable. Now the good feeling to be able to afford more than the €1700 has definitely shifted to a more pessimistic one. Even if we break even, I see that as far too risky, since e.g. no provisions are made for clothes or any leisure activities – I would prefer a buffer of €500-1000, which I had in mind beforehand :/

The items from fuel onwards are factual points; everything above are estimates.

Potentially, I think we might have overestimated costs in:
- Costs per child (although daycare costs us €600/month, but that’s only 2x2 years) – the costs do not include grocery costs (separate point), no housing costs (that goes via the payment), no vacation costs – but care, clothing, etc.
- House additional costs: sqm * €4 is stated on the Dr. Klein website – elsewhere I have read €2-3/sqm, but probably without electricity, gas etc.?
- Other points?

Or does the calculation fit as it is and it will really only be relaxed if we both work constantly (me full-time, her part-time), get married, take less vacation or sell a house?

On the other hand, we were able to significantly increase our equity capital again, as my girlfriend had forgotten (!) a bank account and a savings contract – after contributions from parents and this action it is now a total of €380k, €330k of which is freely available, the rest in stocks.

Thanks!

Nice that there is an update, thanks

What stands out is how drastically the balance (income - expenses) has changed. In June:

[*]Total income: €6000 + child benefit, definitely trending upwards
[*]Total expenses: €3000, roughly estimated with 2nd child: €3700 (?)
[*]Of which cold rent: €950
[*]Balance: €3000 / from 2nd child €2300

Now:

Income: €6150
Expenses: €6300

I know that by now a fictitious house with loan, incidental costs (feeling way too high) and reserve accumulation have obviously been factored in. But if you adjust this number to the actual situation, so removing the installment and reserves, adding back the old rent + some incidental costs, you end up roughly with expenses of maybe €5000. Still a difference of €2000! For that, you have almost €180,000 of equity found behind the sofa... crazy.

Your handling of money seems very careless to me. Which is nice if you have enough. But for the desire of a "high-priced" property, it is worrying to me, and somewhere the money is finite, and then the parents have to chip in again. But why not, if you have the means.

800€ per child, with housing and food already calculated separately? Do they give two ponies at birth or how is that calculated? 800€ additional costs on 200sqm is also exceptionally generous.

800€ per child, although housing and food are already calculated separately? Do they give two ponies at birth or how is that calculated? 800€ utilities for 200sqm is also exceedingly generous.

Per child, as far as I understand, 600€ daycare fees are included. Otherwise, I can't explain it either.

House additional costs (max. 200sqm living space*4€/sqm incl. electricity, gas, water, waste, property tax (1000sqm plot) etc): 800

I consider that too high. I think 2.50 euros calculated there is a good value. Alternatively, one should not just use a flat rate, but rather determine concrete values. Property tax costs, waste costs, water etc. based on current consumption plus a generous garden surcharge, etc.
You calculate reserves separately anyway.