Home financing - low initial rates / rapid increase?

2016-03-22 12:38:40

No, I mean the tax allowance, currently +8652€ p.a.

2016-03-22 12:57:42

So now I unfortunately have to bring you back down to earth here. Both my better half and I work as engineers in the automotive industry. We both have good jobs, partly with personnel responsibility and also already a few years of professional experience. About your mentioned net income of 4-5000€ as it WILL be in the next X years, I can only laugh. What do you dream about at night?? I recommend you take a look at the IG Metall tariff table and then stay grounded and calculate a realistic net income for yourself. You will see, you won’t find that in the tariff table. And to claim right at the start that you will definitely become a department head or divisional manager shows the same overestimation as already calculating with installments of 2,000€. Go to the bank and ask about such repayments, I guarantee you won’t get a loan.

Unfortunately, there are too many fools who think with their university diploma in their pocket that they are untouchable, irreplaceable, and better than everyone else.

It’s not about HOW MUCH it will be in the years. It’s about THAT it will increase. And my question was related to how you deal with it.

2016-03-22 12:59:30

Who says that you are good at your job? Just a few hairs on the....

2016-03-22 13:03:43

The answer to your question you have already received. Sondertilgung, Tilgungsanpassung, and Zinsbindung are the magic words. The same question is faced by everyone.

2016-03-22 13:12:13

It's not about HOW MUCH it will be over the years. It's about THAT it will increase. And my question was related to how you deal with it.

Not considering it at all, but calculating with what you currently have. If you are planning to have children, the additional salary you will have will (partially) compensate for the lost salary of the woman or cover the increasing costs.

If there is even more left, then be happy, pay off the house faster, and enjoy life

Or you wait a few years with building the house until you have reached a better position and have children. Then it can be estimated much better.

By the way, I consider saving 60,000 euros in 2 years to be unrealistic. After graduation, we also wanted to treat ourselves sometimes. "Better" vacations, higher quality food, occasionally eating out at nice places, etc.
After 2 years in the job, we then started saving a fixed amount without having to restrict ourselves too much.

2016-03-22 13:13:19

It’s not about HOW MUCH it will increase over the years. It’s about THE fact that it will increase. And my question was related to how you deal with it.

Yes, it is about how much it will increase. Because that’s what you want to base your planning on – and that doesn’t work.
It may well be that it increases, but maybe not, or only marginally. Then over time, you will run into trouble...

The answer about how we deal with it has already partly been given to you by Uwe82. I would like to add:
- Base financing on the current situation
- Possibly scale back to smaller (house/apartment) bites and work your way up ==> if you want to do that in your job, then do the same with your real estate
- Always plan for the worst

I also started with a small condominium and paid it off after five years, then came the semi-detached house, and now we have a detached house worth around three-quarters of a million. All this in less than 20 years, having lived well so far (long-distance travel, cars, food), and brought three children into the world.
With every step in life, there is an adjustment.

Home financing - low initial rates / rapid increase?

DG

Neu-Bau-Ling

Sebastian79

Uwe82

Annadks

nordanney