heltino
2013-02-04 00:27:03
- #1
4500 euros net, no equity saved at all (your 5k euros don't count...) and then you yourself put a TV (!!!) on credit?
How are you supposed to manage a 110% financing with that?
Interest rates are beyond 4%, you have to repay, especially if you build without equity, with AT LEAST 2%, better 3%...
And so far you have "lived comfortably" off your net income.... how sure are you that you
a) want to give that up
b) can give that up
and c) will really manage that
?
Have you ever kept an honest household budget?
Honest = writing EVERYTHING down for several months, every parking ticket, every cola.
THEN you know reliably what your usual standard of living costs and see what is realistically feasible.
Your circumstances make all my red lights go off, sorry.
With that income you'll probably get a loan, but don't overreach with the financing.
That quickly goes wrong.
PS: 68k euros retirement provision, available in 2042.... is by far not enough and is also useless when it comes to "paying off the house."
The annual inflation rate averages 2%... calculate your living costs in 30 years ;)
Or roughly, to illustrate, put into mathematical facts:
if you take 68k euros credit, pay only 2% interest for it and plan to pay it off in 30 years with a special repayment from your retirement provision, which would be nonsense anyway, a funny picture emerges:
your retirement provision with 68k euros stands, your credit of 68k euros has almost doubled to a slim 123k euros (!!!) in 30 years with compound interest.
or the other way: we simply discount 68k euros against inflation: this results in a purchasing power of 37,500 euros... a little more than half (that's why the retirement provision is massively too low, you have to do more!)
How are you supposed to manage a 110% financing with that?
Interest rates are beyond 4%, you have to repay, especially if you build without equity, with AT LEAST 2%, better 3%...
And so far you have "lived comfortably" off your net income.... how sure are you that you
a) want to give that up
b) can give that up
and c) will really manage that
?
Have you ever kept an honest household budget?
Honest = writing EVERYTHING down for several months, every parking ticket, every cola.
THEN you know reliably what your usual standard of living costs and see what is realistically feasible.
Your circumstances make all my red lights go off, sorry.
With that income you'll probably get a loan, but don't overreach with the financing.
That quickly goes wrong.
PS: 68k euros retirement provision, available in 2042.... is by far not enough and is also useless when it comes to "paying off the house."
The annual inflation rate averages 2%... calculate your living costs in 30 years ;)
Or roughly, to illustrate, put into mathematical facts:
if you take 68k euros credit, pay only 2% interest for it and plan to pay it off in 30 years with a special repayment from your retirement provision, which would be nonsense anyway, a funny picture emerges:
your retirement provision with 68k euros stands, your credit of 68k euros has almost doubled to a slim 123k euros (!!!) in 30 years with compound interest.
or the other way: we simply discount 68k euros against inflation: this results in a purchasing power of 37,500 euros... a little more than half (that's why the retirement provision is massively too low, you have to do more!)