Financing single-family house - How much can we afford?

What I want to say: you are still young and more liquidity will come. If you don’t absolutely have to build on the plot, wait a few more years. However, it seems that your father is providing some security, and his stated limit is not entirely unfounded. Calculate it together... back then my father also gave us a larger sum of money to start our own home... but he secured it as a 0%-loan so that in case of a separation the money was secured for him and would not go to the ex-husband. If you want to know more about it, feel free to contact me via PM. Regards, Yvonne

Yes, you are quite right. Unfortunately, we would have to build on the plot if we want to keep it - otherwise we would have to pay a sum X to the developer.

Why is that money thrown away? Whether you pay (cold) rent to the landlord now or interest of the same amount (or more!) to the bank makes no difference, both are gone. But with a rental apartment you don’t tie yourself to a place or a bank. The additional insurances you mentioned – that’s the landlord’s business, just as the reserves to be formed, which would also come to you with a home of your own. Repairs and damages?! -> landlord. Just because interest rates are currently favorable doesn’t mean you have to buy real estate at all costs.

You are of course right about the interest! I also throw that out the window. However, a certain portion is also repayment of the loan – with renting I basically pay 100% interest. And if I don’t want to live in a rental apartment all my life, the issue with the bank loan will come up for me anyway. I can’t really save much money with renting anyway, because the rent has to be paid. And things like repairs & damages, insurances, etc. the landlord passes on to the tenant anyway, right? At least that’s what I would do as a landlord.

Of course, some costs are passed on to the tenant, but not everything can be charged to them. However, I am not exactly familiar with the details. And how should a repair (e.g., new roof covering) be passed on to the tenant? The landlord must build reserves for that, just as a homeowner should.

As an example: With a loan of 250,000 €, 3% interest, and a payment of 1,000 €, you pay 625 € interest in the first month and still about 500 € interest after 10 years (i.e., in month 120).

Everything looks very tight, maybe you should calmly plan for 1-2 more years first, perhaps by then something will have changed in terms of salary.

Hello.
I'm getting back to you regarding the above-mentioned construction financing.

Here are the updated details:

Costs
- House turnkey 285,000 EUR
- Estimated incidental construction costs 29,000 EUR
- Furnishing including kitchen 25,000 EUR
Total costs: approx. 340,000 EUR

Capital
- Equity 90,000 EUR
- Debt capital (financing) 250,000 EUR

The land is already our property - no further costs apply here.

Our (girlfriend and I) current monthly income is approx. 3,500 € net. Both have permanent employment.
In November, I was advised against the financing here in the forum. So why am I still here?

Back then, our net income together was still 3,100 €. The 400 € difference obviously does not change much immediately, but it gives us an additional monthly cushion. In addition, my parents have promised us full support if things get tight. For example, they still own a large building plot (worth 80,000 €), which could be sold as an advanced inheritance "in an emergency". Of course, that is something you ideally don't want to rely on - but it gives additional peace of mind in the back of your mind, just in case.

So much for that - not that anyone should get the impression that I am resistant to advice. I am still open to honest opinions - including critical ones.

Now to my actual concern:

I currently have the following financing offers, but I'm not quite sure which would be more sensible. I especially have trouble with the interest rate I should calculate with after the fixed interest period ends. What would be assumed? 5%? Or is that too optimistic?

We want to pay off 1,000 € per month - we do not want to burden ourselves with more.
Special repayments of 10% of the original loan amount per year are possible.

Option 1:
Interest rate of 2.4% for 10 years
Remaining debt: 182,264 EUR (interest rate risk exists here)

Option 2:
Interest rate of 2.85% for 15 years
Remaining debt: 158,890 EUR (interest rate risk exists here)

Option 3:
TA loan

150,000 EUR through bank
Interest rate of 2.37% for 10 years
Remaining debt: 105,000 EUR (interest rate risk exists here)

100,000 EUR through a home savings contract
Interest rate until allocation maturity: 2.9%
Interest rate after allocation: 3.3%
Term with planned repayment: approx. 28 years, no interest rate risk

Which option would you choose? With option 3, I have worse interest rates, but after 10 years the interest rate risk applies "only" to approx. 100,000 EUR, whereas with option 1 it is already 182,000 EUR. Option 2 might be a compromise?!

I really have trouble assessing the interest rate risk. I definitely don’t want to fall into a hole after 10 years and suddenly be over-indebted because I can’t afford the high interest rates. At the moment, for this reason, I am leaning (intuitively) towards option 3 - but I would somehow have to (how?) recalculate whether the extra interest possibly offsets a rise in interest rates after 10 years.

I would be very, very grateful for opinions/help.

How high is the monthly installment for the home loan?

With the Bausparkombi you have to calculate precisely, do you have a total cost breakdown that really includes all costs? With the correct effective interest rate?

5% ... well, who knows what it will be in 10-15 years. That is definitely not a pessimistic estimate.

Thank you for the response.

Regarding option 3:
TA 100,000 EUR

Savings performance 212 € per month + 237.50 EUR interest installment = 449 EUR monthly costs
From the time of allocation, the monthly costs would be 473 EUR

I have a total cost statement, including the repayment schedule.

Costs:
1000 EUR contract fee
13,000 EUR interest on the home loan

Earnings from the home savings contract:
689 EUR

Costs for the pre-financing (interest-only loan)
42,513 EUR

Total costs from pre-financing and home savings contract
55,824 EUR