Home financing - check our options

Hello,

actually I am a happy tenant and also satisfied with my apartment. But since we miss having a garden a bit and with an apartment that has a garden share the difference to ownership is no longer very high, we have dealt a little with real estate. Over the past few days, I have intensively searched this forum, talked with colleagues, and also made an appointment with an independent financial advisor.

Our requirements would be a semi-detached house or a terraced middle house with a maximum plot size of 300m² and a living area of about 100m². We have no children and neither planned nor unplanned ones are expected.

We are my partner (27, permanent employment, 1250 euros net) and I (31, permanent employment in public sector, 2610 euros net + part-time job (400 euros)). Resident in the district of Unna (NRW). In total, therefore, 3860 euros. Our equity currently amounts to 25,000 euros. Why so little? So far, we have not thought about buying and preferred to live well. Vacation, Christmas bonuses or other allowances amount to about 2500 euros per year but should not be taken into account. I will not do the part-time job anymore for 5 years, so I have mentioned it but do not include it in the calculation. A collectively agreed salary increase of about 150 euros is expected only in 5 years.

Our current monthly fixed costs are as follows:

[*]Life insurance 112 euros
[*]Saving for vacation 100 euros
[*]Telekom 62 euros
[*]Mobile phone 33 euros
[*]Public transport ticket 65 euros
[*]Car 240 euros
[*]Fuel 70 euros
[*]Insurances (annual costs converted to monthly) 60 euros
[*]Groceries 400 euros
[*]Other expenses (clothes, eating out, etc.) 600 euros

The total expenses therefore amount to 1742 euros. I have added a small safety margin each for the items "Groceries" and "Other expenses." This results in a remaining amount available for financing of 2103 euros.

For additional costs (property tax, waste disposal, water, electricity, etc.) I have calculated 300 euros (100m² x 3 euros) and for reserve formation 250 euros. In total therefore 550 euros.

For the financing itself, I would initially set only 1200 euros for a first calculation. We want to be finished by retirement at the latest. The sooner, the better.

Now the questions:
- Would a financing amount without additional costs of 250,000 euros - 270,000 euros be realistic for us?
- It really does not matter if it takes one or two years longer. Should we wait longer and save up equity? Is an extreme interest rate jump expected in that time?

The financial advisor said that up to 300,000 euros is "no" problem. But when I saw the remaining debt after 20 years, I almost wanted to flee the room. :-) She also hinted that we should wait and save up equity first.

And one more personal question: loans from the KFW Bank were also calculated. Isn’t this quite a risk when the loans mature after 10 years? As far as I have seen, the monthly burden is quite low with this, but the final amount to be paid is all the higher.

Many thanks in advance for suggestions, tips and opinions!

Hello!

Basically, one can ask the question why you have 2k left over per month but have only saved 25k in equity... But good living is good living :) You should ask yourselves much more whether you might miss the good life with property. One thing is certain, the fixed burdens will increase. And at some point, repairs will be needed.

Do you want to buy new? Are these price expectations realistic for you?

Regarding the fears. Yes, indeed, 10 years is an interest rate risk. That’s why you should try to either agree on a higher repayment rate for the KfW portion or save money in parallel for the repayment. Especially with the KfW70/55 etc., the conditions are too good not to take advantage of. The main financing should of course be chosen for a longer term given the interest rate level. At least 20 years. Feel free to contact an intermediary as well.

Good morning,

my list above does not include the current rent. This is currently 700 euros (warm + electricity).

Whether new build or existing property is actually irrelevant, or rather we are open to both. There are advantages and disadvantages to both. In the first step, we wanted to first find out our financial scope.

For the price mentioned, something should actually be findable in the area.