Home Financing Options Tips

Hello,

I need some information and tips on how we might be able to buy an existing property or finance the construction of a house.

Background:
We are currently renting a house and paying €550 per month cold rent.
Actually, when we moved in 2.5 years ago, it was agreed with the current owner that we could either buy this house in about 6 years (it wasn't possible earlier because he would have to pay his ex-wife then) or if we didn't want to buy, we could definitely expect to live here for a long time.
Accordingly, we have invested our money here (built a fence, bought a lot of tools, wooden ceilings, did a lot in the garden, and more), and now the landlord is announcing personal use!
Unfortunately, all agreements regarding purchase or long-term residence were only verbal (yes, we were stupid).
Everything was just finished the way we wanted, and we were about to start saving to possibly buy someday.

Since we will hardly find anything comparable for the price, we would have to spend at least €700-800 in the future or throw away half of everything we have and significantly downsize.

That’s why the idea of buying something arose.

We don’t want to pay a lot of rent somewhere again only to start all over at some point.

We are both 37, (still) have no children.

Monthly, a payment of €650 would be feasible for us to pay off a house.

His salary: at least €2500 net (probably more due to commission), still has a loan running with €300 monthly repayment, approximately €5000 outstanding now.

Her salary: currently €450 net (only part-time at the moment but can work full-time again if no child comes).

We could only raise about €10,000 in equity because we unfortunately spent a lot believing we could buy or stay long-term in the current house.

Are there realistic financing options for such a case?

Roughly purchase of an existing property or construction with a value of €140,000 - €160,000 fully financed?
Probably, if anything, an existing purchase would be more likely.

Who has done something like this?

With an ongoing loan, it is often difficult to get a new loan. Also, a single person is rarely welcomed by the lending bank. (We won't count your wife's salary) But you are earning quite well with 2500. You alone could already afford to spend more on cold rent, how do you determine the 650 € now? That is a bit too little... theoretically, you could probably get 130000 €. Why doesn't your wife increase your monthly liquidity so that a) you get rid of the private loan faster, b) you can pay off a higher amount?

We are assuming a low rate because we still want to have enough room for savings for the later realization of a big dream of ours.

We are not married.
Some time ago, we consciously decided that she would only work part-time because we are building up a second source of income (self-employment) on the side, as we are also planning to have children, and with the second source of income, she could still earn money even with a child without us losing anything.
Since this is still in the development/start-up phase, we do not want to count on it yet.
However, if it doesn't work out, she will go back to working full-time.

But €130,000 might already be enough for an existing property that is in good condition; we have seen some quite good options here starting at €120,000.

Hello,

I have to play the spoilsport again.

There are too many plans that might come up someday. Part-time work and self-employment plans are being discussed that carry much more risk than an employment relationship. Is this self-employment feasible without capital investment? You do know that a child also requires time and money if you use daycare/kindergarten?

In the current situation, in my opinion, it would not be feasible.

No, really, a child costs money? Well, we really didn’t expect that..

But of course, we understand that.

And yes, the self-employment is already established and won’t cost us anything anymore, at worst the revenue isn’t enough and it breaks even.
Currently an actual monthly profit of 200-300€, but it’s just getting started.
Before, she earned 1000€ full-time and also spent 200€ on fuel on the road for that.

Now she has no commute, definitely gets 450€ plus whatever remains from the self-employment, so currently a total of 650-750€.

The loss is therefore limited.
And actually, the coming years were planned completely differently, we couldn’t have known we’d end up on the street so quickly.

The question is whether you can finance a house with about 650€.

For family planning, it's not enough that only she works part-time. Both have to "pitch in" :)

Seriously though: Your budget is not enough to build yourself. That much is certain. Existing properties vary regionally. Where we are, you won't get anything for 120,000. Only demolition work :) Or small 2-3 room apartments. :)

650€ is also too little to finance your wishes, you have to invest more :)