Financing rate: living expenses, insurances, etc. OK?

Morning!

Such fictional considerations taking individual amounts of 20 or 35 euros into account are really cute. You only find out what it actually looks like with a household book.

I miss expenses for leisure and clothing in your listing - did I overlook something?

The consideration of depreciation (reserves) seems commendable but is likely illusory in the first years after building the house due to expenses for the garden, curtains, vases, pictures.......The same applies when a child arrives.

Our surprise package was the other expenses. For many, many small things plus birthday presents plus plus plus, there have been unnoticed 400 € (at least) every month so far.

If you build without a basement and don’t want to stay just the two of you: build bigger! Funny enough, the first 100 sqm cost a fortune, then it becomes significantly cheaper.

Best regards, Tomtom.

Hello Tomtom

Thank you very much for your comments.
Fictitious, the amounts of €20 and €35 are of course not. These are amounts that are debited from the account almost every month in the same amount.
And the more I filter out the "small stuff," the smaller the item "Miscellaneous" becomes.
I have not made a detailed household budget, but I have been observing our account movements for years.
I work in accounting/controlling. That probably says it all
Cash payments are harder to track here.

Clothing and leisure are listed under Miscellaneous for me. If I go shopping 1-2 times a year, it always becomes a bigger item. For my wife, it’s rather gradually. And the leisure area isn’t that big for us. Occasionally cinema. We rather give ourselves the more expensive leisure activities for birthdays/Christmas. Therefore, it’s difficult to quantify monthly.
In general, however, we do not have any large thoughtless expenses.

At the moment, we also still have a large buffer with which we can easily cover the initial purchases.
If I were to go by yesterday’s bank conversation, after deducting the planned loan installment and all expenses estimated by the bank, there would still be €1300 left at the end of the month. Would be nice
However, the buffer disappears if the desire for children comes true or if someone becomes unemployed.

Building bigger would of course primarily be nice at first, but it still costs quite a bit more and must also be maintained in old age.
I think with a planned child, 120-130m² should be enough.

Best regards
The Musketeer

Hello!

Sure, 120 to 130 sqm is sufficient. The only question is whether one burdens oneself with so much debt and restricts oneself elsewhere in the future in order to be sufficiently accommodated.

We had initially planned the same. But since an additional 20 sqm hardly made a difference in price, we now have 150 sqm. This includes a larger living room, a nice hallway, a bigger bathroom, a guest toilet with shower, a dressing room......
And in old age, instead of children's rooms, I will have a sauna (appropriately prepared), a guest room, a TV room, a workshop, a reading room - and if I really don't need a room, I just lock the door.

There is only too little space – too much would probably only be conceivable starting from 200 or 300 sqm.

Best regards,
Tomtom

PS. Just keep a household book for a month or two – I guarantee surprises.

In one of the first plans, we also shifted the wall outward by one meter.
That amounted to about €12,000 for approximately 16m² of additional living space, if I am not mistaken.
Percentage-wise it becomes cheaper per additional m² because the expensive items such as heating, stairs, sanitary fixtures, and doors are included regardless of the size of the house.
I never wanted to have to limit myself financially for the house construction. So rather only 120m² and be able to go on vacation every year than 150m² and have to forgo vacations.

You have somewhat unsettled me now with the costs though.

Therefore, I have now done a cross-check by comparing the account balances from a year ago with the current account balances and deducted everything that was extraordinary expenses (wedding, honeymoon) and related to ancillary costs and rent.

Without vacations, without reserves, without rent and ancillary costs, I come to costs of €1250/month and am thus €150/month cheaper than my own calculations.
The difference rather results from received interest and not having too large car repairs in the last year.
Overall, the total sum of my costs should therefore be fairly accurate.

If you now add the planned ancillary costs, reserves, and average vacation costs, I am at €2350 costs/month.
The planned loan rate is €900. Then we currently still have plenty of buffer, which we will still need during the parenting phase.

Then get ready for the tax back payment in the four-digit range.... Parental allowance is tax-free, but subject to the progression clause. That means the income is added to your total income and thereby increases your tax rate. We discussed this trick with the tax advisor, and he said quite clearly that it is hardly worth it, unless you have high write-offs to offset it.

Of course, it always depends on the income of the respective partners. The higher the tax rate, the less worthwhile it is. You obviously have to calculate that in advance.

Since at least your wife earns more than we do and I assume that you also don't earn too badly, it may be that it is not worthwhile for you because parental allowance is capped at 1800€. For us, it is definitely worth it. I worked for years at a tax advisor.