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

2014-10-27 17:19:26

: Was the question directed at me now?

It was less a question and more a general questioning of one's own calculation.
Whoever correctly sets up an expense calculation also has short-term leeway in case of unemployment. Fortunately, as employees, we have insurance to receive at least 65% of the last net income, so effectively only 35% needs to be covered.
However, anyone who lies to themselves about their expenses and thinks "I just got a new car, I don't need to factor that in" can, in certain cases, fall flat during short-term unemployment or a total car loss.

In the case of long-term scenarios, it depends on the individual how much security they need.
One person wants to continue paying off the house even in case of occupational disability or reduced earning capacity, another prefers to sell instead.
But everyone has to decide for themselves how much financial leeway they need.

2014-10-27 18:05:26

I fully agree with that!

2014-10-27 20:05:53

For me personally, it is important that at least a certain period of unemployment of a partner can be bridged.

It is said that in the past a single earner was able to finance a house. I don’t know if that’s true, but I would like to believe that it is still possible today. Of course, this person must earn well enough; it "just has to fit." But with a single earner, you just have to take the risk.

I don’t know how you calculated things, but I also included vacation, depreciation of a vehicle, and monthly savings.
If things get really tough, then the vacation in the year of unemployment will be canceled, contributions to long-term savings will be reduced, special repayments won’t be made that year, or the tax class will be changed. Then you can also live on 65% unemployment benefits for a while. In the case of long-term unemployment/long illness, you might still have the option to get rid of the second vehicle. Usually, you also have 2-3 months’ salary as short-term savings.
At least for us, there are so many levers to turn that you can easily bridge such a situation for a certain period.

So, for me, the worst case is not short-term unemployment, since that can be compensated by cost savings.

The worst case for me would be long-term loss of income or loss of income of both partners, and that is something very few can compensate for in the long run.

Agreement!

2014-11-12 21:49:18

"frueher" a """normal""" (i.e. not a high earner, but a regular employee) sole breadwinner could support not only the little house, but also a car, wife and child, and vacation was still possible.

Nowadays, many families with two ""earners"" already have to apply for supplementary benefits – more of a societal problem than a purely financial one?!

2014-11-16 22:58:16

Hello, I have been keeping a household budget with an Excel spreadsheet for several months. It is quite astonishing how little remains despite a decent income and receiving [Kindergeld], or how money slips through the fingers. With 5 people, we have fixed costs of around 1770 per month (with only 550 cold rent) and about 1800 more for daily needs (food, clothing, pharmacy, school supplies, hairdresser, birthdays, etc.). That makes an incredible 3570 per month. Unfortunately, there is hardly anything left for building the house...

2014-11-17 20:32:16

Hello, I have been keeping a household budget with an Excel spreadsheet for several months now. It is quite astonishing how little remains even with a decent income and despite child benefits, or how money slips through one’s fingers.

Well, that’s how it is... By the way, I do it based on the gross income, on the one hand you can see how great I earn, on the other hand, how little ultimately stays in my pocket.

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

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