Financing purchase project single-family house 580TE before upcoming parental leave

I understand. That’s tough. Fortunately, I talked my wife out of something like that, otherwise we’d still be hanging around in a rental apartment in a similar area. Means 760k€ (580 x1.1 +120) total volume -120k€ equity = 640k€. The bank probably values the property significantly lower than 580k€. Therefore, I think it’s not only the income that will be a challenge, right?

Yes, that's true! But for the right property, we would take on this challenge; unfortunately, you always have to make compromises...

So, I have to be honest, this is really borderline, even with your two salaries. If this were a new build from a developer with a price guarantee, I might just barely say: Yes, it’s somehow doable. But here you have a significant risk, the risk of the "hidden." You only see that once you tear the place open. There is hardly any room for additional financing in case of emergency. In the end, only the family remains, would there be anything to get from them if push comes to shove?

We definitely do not want a new build, at least not in a new development area. Yes, of course, it is and remains a risk. No, nothing will come from the family.

I see it similarly. For €120,000, the house certainly won't reach new build standards. 170m² at €1000/m2 for core renovation costs already indicates the direction. But aside from that: "Floor, kitchen, doors, electrics / water pipes." What about the heating system? Do you want to stick with gas now, or switch to a heat pump + underfloor heating? And if so, can you insulate the house accordingly on the exterior walls? Should rooms be enlarged/combined? Should larger windows be installed? How old are the windows? What else needs to be done outside? [/QUOTE] The heating system is like new, 2 years old. Radiators are not. Yes, rooms should be slightly altered (non-load-bearing walls). The windows are from "back then." The outdoor area, meaning the garden, is the highlight. Absolutely top. The owner has maintained it very well.

Again, that is a loan of 640k€ with a lending value of possibly 464k€ (=580x0.8). That means you ask your bank for 640k€ and the bank tells you the house is only worth 464k€. Whether the bank values the 120k€ as 100% appreciation depends on the bank.

This means you will per se have to pay more interest or make a certain repayment or provide more equity (in any combination of these).

I see a payment over 20 years with 3% repayment and thus 2400€ + 450€ monthly ancillary costs.

Regardless, the salary does not fit a 640k€ financing.

I see it similarly. For €120,000 the house definitely will not meet new build standards. 170m² at €1000/m2 core refurbishment costs already points in that direction. But aside from that: "Floor, kitchen, doors, electrics / water pipes." What about the heating system? Do you want to stay with gas now, or switch to a heat pump + underfloor heating? And if so, can you insulate the house accordingly at the exterior walls? Should rooms be enlarged/merged? Should larger windows be installed? How old are the windows? What else needs to be done outside?

The heating system is new, 2 years old. Radiators are not. Yes, rooms should be changed slightly (non-load-bearing walls). The windows are "from back then." The outdoor facilities, meaning the garden, are the highlight. Absolutely top. The owner has maintained it very well. [/QUOTE] Well, do you want to buy a park or a solid building? :) A new heating system alone – gas condensing boiler? – by itself is not expensive. That was not my question either – the question is – how do you want to heat in the future? So, over 25-30 years, during which you will repay the loan? With the breakthrough of electric cars, oil will drastically lose importance and that will also show in the price. The gas price is linked to it. Hence the question.

Well, financing that much with 5k net is something you have to like! Personally, I don't like it!