Financing purchase of existing house BW, 800-850k€

1. Financing amount too high
2. Equity saved up yourself?
3. Two-family house = there is always an annoying tenant
4. Rental income is taxable
5. Conversion to heat pump pointless, as consumption is too high and old underfloor heating probably with 15cm or more installation spacing
6. Interest rate fixation of 10 years too low, low repayment = high follow-up financing risk
7. Calculation with child(ren) and only one income?

Hi Benutzer200 and thank you for your post :)

1. Financing amount too high - Can you explain that a bit with numbers? Or do you think one simply shouldn’t finance that high?
2. Equity saved up yourself? Partly yes, why is that relevant?
3. Two-family house = there is always an annoying tenant - fortunately it is an isolated granny flat, basically it is a single-family house
4. Rental income is taxable - I tried to take that into account in the 800€
5. Conversion to heat pump pointless, as consumption is too high and old underfloor heating with probably 15cm or more installation spacing - I can’t assess that yet but there must be some possibility of sensible energy retrofit, right?
6. Interest rate fixed for 10 years is too short, low repayment = high refinancing risk - from what remaining debt after 10 years would you consider the refinancing risk reasonable?
7. Calculation with child(ren) and only one income? The cushion of 100k€ is intended for such losses which we (according to the current plan) do not want to touch otherwise (We hope for an average annual return of ~5% on the capital market on top of that which is not yet factored in)

Regards

I would personally probably invest more equity and then see how much you can still save afterwards and put that money into ETFs. With an amount of 600,000 I would be relaxed with your salaries. And: Sure, when children arrive, the belt has to be tightened a little temporarily, but especially if afterwards there is still room for salary increases, you can always save. You are still so young!

I would personally probably contribute more equity and then see how much you can still save afterwards and put that money into ETFs. With an amount of 600,000, I would be relaxed with your salaries. And: of course, when children come, the belt has to be tightened a bit temporarily, but especially if afterwards there is still room for salary increases, you can always save. You are still so young!

Thank you very much for your post! The decision all-in vs as far as necessary is indeed a question we haven't been able to clarify 100% for ourselves yet. In our calculation, the return of the capital market by far exceeds the interest costs even if we calculate pessimistically. But as you already say, we are the generation that has grown up in immediate confrontation with these capital market returns. Possibly we are somewhat blind to "bad times."

Hi ArmAberSexy, first of all, congratulations on such a "catch" - and for the solid information. A few remarks from my side:

1.) In financing forums, the rule of thumb of "110 net monthly salaries" for the financing amount often circulates. As long as you don't have children, that fits quite well. You could possibly deduct an amount. If you have two children and receive parental allowance instead of salary for 14 months per child and then return to full-time work (with appropriate care), you can calculate the loss of income.

2.) Does the stated sale price for the house come from a discount negotiation already conducted with the owner? Or has the owner already raised the price (e.g. due to numerous inquiries)? The listing mentions a significantly higher price than you used in your calculation. With the price indicated there, it might be tight.

3.) As a consequence of point 2: If you look at the standard land values of neighboring communities (at the location of the house BORIS does not show a land value), then the plot is roughly worth €200k. The house on it would then be priced at about €2500 - €3000 per m² (excluding land value!) - and that seems to me clearly too much for a (even partly modernized) property from the 70s (also energetically unmodernized with oil heating). Why do I write this? The bank could ruin your plans by setting the lending value so low that your equity is not sufficient.

Now I have taken a closer look at the advertisement again and in the meantime I have some doubts about its seriousness. What I notice:

a) Ads with fake names always seem suspicious to me

b) Roof insulated with 20 cm of insulation between the rafters, but exposed roof structure with drywall cladding that already extends several cm between the rafters? How should 20 cm fit on top of that? Maybe the insulation experts can say something about that.

c) The facade does not seem to be insulated separately (i.e. later than the year of construction). From the photos it is apparent that the walls are relatively thin. Also, I cannot imagine that after facade insulation the asbestos slate would have been hung on it again.

d) Air conditioning required in the bedroom? That does not look like super roof insulation either.

e) Consequence from b+c+d: How does that lead to an energy certificate with efficiency class C?