Zaba12
2018-02-19 09:11:04
- #1
Thank you very much for all the input. When I started the thread, I did not expect so much response in such a relatively short time.
I also know people who have slightly miscalculated their financing for the house and now have to/can work additional jobs in the evening or on weekends.
I myself have now kept my Excel household budget diligently for several years and have really written down every little detail to get a truly realistic picture of my savings performance when I neither live stingily nor financially lavishly.
With a 2% repayment, the expected loan installment would amount to 40% of the household income, with 1% 30%, and with 1.5% 35%. With 3% it would be 52%.
My house bank says that the loan installment should never be more than 1/3 of the net income; on the internet, you sometimes find 40% as the maximum guideline.
My savings performance over 5 years was between 30% and 60%. Sometimes I could easily bear a repayment of 3% or more; at other times it would have been tight with 2%.
From this consideration and taking into account house maintenance costs, I come to the following conclusion (hence the thread):
If no major "issues" arise, I can theoretically afford repayments of up to 3%. But as soon as more accumulates in a short time (car, legal disputes which the legal expenses insurance does not cover, support for needy family members, higher travel costs due to a transfer), such a high rate might then be difficult to manage.
Therefore, my thought was: low rate, less pressure.
Oh... based on your first post I had assumed a more relaxed situation and not that you are already at 30% with a 1% repayment.
You have not written down any absolute numbers so far. Maybe now is the time to do so in order to make a concrete proposal based on your figures as to whether building a house makes sense or not!