Health risks of the primary earner in financing

  • Erstellt am 2024-05-07 22:47:00

GalileoHystery

2024-05-07 22:47:00
  • #1
Aloha,

first of all: I am aware that in the end, we can only give ourselves the answer. The purpose of this thread is primarily, from my point of view, to gather other perspectives that we might not have considered ourselves, in order to evaluate our situation.

Here is the situation: we (me 35, her 29 and 2 children) currently live in a rented semi-detached house, 30 years old, rather simple standard, enough space but could be bigger, (for us) almost dream location. The city is currently in the process of preparing a new development area in our district from a planning law perspective, where building plots may become available in the next few years. We are generally satisfied, but with the rent from a private landlord and the ever-present latent risk of an owner-occupier termination, we are of course not completely happy. Therefore, our wish is: if we have the chance to get such a plot (or come across an interesting existing property), we want to be able to decide on the purchase purely based on "do we want it, does it fit us?" and not have to say no from the outset for financial reasons if we would otherwise have liked to try.

Current key data:
Equity about 25k (recently made a gross salary jump of 24k, before that the calculation was much more hand-to-mouth than now)
Household net: 6k currently (tax class 4 with refunds >5k, there is still potential here for special repayments / higher net or reserve)
Rent: 1,250
Savings rate: 1,500

Basically, the plan is now to build capital first and ideally, if something comes up around the corner, to finance it properly with the saved money and the proven possible repayment of at least 2.7k.

Now comes the big but:

As the main earner, I have an, let's say, eventful medical history with Langerhans cell histiocytosis. A disease rare enough to have been the resolution of an episode of Doctor House. I had it at 11, a relapse at 15 and a second relapse at 25. Each time I received (for chemo standards) gentle chemotherapy, so far emerging unscathed. But I was indeed out of commission for 6-8 weeks each time, and no one guarantees that next time it won’t be worse. I was able to take out a term life insurance in favor of my wife after several attempts last year, probably because the inpatient hospital stays were long enough ago now.

Now back to the above scenario. Without the medical history, one can calculate what sums one could finance with 2-3% repayment, depending on how much has already been saved. But how does the health aspect now change the calculation? What questions would you ask yourself, what answers might you already see?

Thanks in advance for your input!
 

nordanney

2024-05-07 23:16:30
  • #2
Honestly? I wouldn’t even consider the health aspect. If you base it on that, you will probably be annoyed at 80 about everything you DIDN’T do in your life because of possible health problems. To put it bluntly: What’s the worst that can happen? Death? I googled your medical condition and saw that the long-term prognosis isn’t supposed to be that dramatic (according to the internet). Alternatively, disability. And then it doesn’t matter whether you live in a rental apartment that you might not be able to afford anymore including care, or in a house. Yes, giving up the house is probably harder. But it’s just a utility item like a car or a phone (at least for me – at 51 I’m currently living in my fifth (or depending on how you count, even sixth) own property according to life situation. So live your life the way you like it. Go for it and see if you can get a nice own little house. P.S. Off-topic: In your current financial situation I (still) don’t see the potential for building a house of the necessary size.
 

ypg

2024-05-08 00:13:43
  • #3

I see it the same way.

Not at all. (I'm not going to google the disease now, because age and, in general, uncontrolled chance/worst case can play a role in others as well.)

However, a lot still needs to be saved for a small house. But you are still young.
 

MachsSelbst

2024-05-08 00:18:09
  • #4


Well then? Let’s go! Nordanney googled it, so it’s not that bad after all! Chin up, what’s the worst that can happen to you? An early death, don’t whine...

So... now seriously.
Your equity is far, far too low, interest rates are insanely high right now, and prices have barely dropped.

Nordeney might already be living in his 6th house, how he always managed to recoup the property transfer tax of 3.5-6%... fine...
Doesn’t help you. In the worst case, you get the next relapse, are out for 3 months, your employer doesn’t like that... and you don’t find a buyer for your place... and then? Do you ring Nordmann’s doorbell?

You need security... otherwise this is a gamble. Can your wife take over as the main earner if necessary, and you take care of the children? If that doesn’t work... then you’re playing with full risk involving your children here. Good luck.

You can completely forget about ypg, she has no children and therefore no clue about responsibility for little people who can’t take care of themselves if dad, the main earner, is out.
 

MachsSelbst

2024-05-08 00:31:26
  • #5
Sad, no question. I had a colleague who was diagnosed with MS quite early in life. We all wondered why he lived so frugally and saved every, really every cent... until he told us he had MS and that it would probably end badly for him... So he had comfortably saved 60% equity for his home by his mid-30s because he knew exactly that he couldn't repay a 30-year loan with 10% equity... Unfortunately, you have to be this realistic, even if it hurts. When you go under the ground because of illness, the wife and children inherit all the debts and are... with dad as the sole earner, usually ruined for years (decades)... You can close your eyes tightly to that and argue from the perspective of a childless couple in their mid-60s that people shouldn’t make such a fuss... but it doesn’t help at all. From the moment they come into this world, the welfare of the children should always be the priority. Always. And here, with the equity and a construction project at 3,x% interest rates, unfortunately, that is not guaranteed. It is vabanque. Nothing less.
 

markusla

2024-05-08 05:50:23
  • #6
How high is the sum of the RLV? I see it like nordanney (also have something chronic) and children. Better to fail than not to have tried. But that is a life philosophy.
 

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