Home financing with net 4300

Hello everyone.

My girlfriend and I intend to purchase a single-family house of 190 sqm on a 600 sqm plot built in 1985.

The property is supposed to cost 290k euros.
Additional costs approx. 38k euros
Renovation approx. 70k euros (according to expert)

Equity capital 100k euros, of which 20k will be kept as a reserve.

In total, 318k euros will therefore be needed from the bank.

We have a net income of 4300 euros.

I am a civil servant for life, 2500 net.
Girlfriend permanently employed, 1800 net.

We already have an offer from the bank.

268k at 1.89% for 20 years
50k KfW at 1.55%
Monthly rate 1300 euros

I calculate 500 euros additional costs for property tax, electricity, gas, water, garbage, internet, phone, TV.

200 euros reserve for the house.

So, a total of 2000 euros per month.

That leaves us with 2300 euros to live on, and of course we also want to save some.

In addition, there is a car, a motorcycle, and an expensive horse that my girlfriend of course does not want to give up...

We also plan to have a child in 2-3 years.
Due to my family allowances as a civil servant and the better tax class, in this case we would stay at about 4300 net.

But now we still have to provide for one child.

So far, we never had to worry, but with the house I am a bit afraid that it might not fit so well with a child.

What do you think?

I have no experience regarding the additional costs in the house, but 700€ per month is calculated too high. For two people with everything, it should be a maximum of 500€. It's somewhat similar to the apartment. We are still building, but I asked friends and for them with two children the additional costs are a maximum of 500€.

It is doable and depends on how you normally live. I would recommend you to list your expenses (food, going out, clothing, etc.) and then see how much you spend per month. There are people who manage to pay for a house and feed two children with this income; for others, it would be far too little for two people. Everyone has different standards, so make a list of costs and then you will see for yourself and can answer your question yourself.

Hello,

you have good equity. Saved it yourselves or inherited/gifted?

What does the monthly savings amount look like otherwise?

Yes, kids always cost money. Not just food, childcare, etc., but also loss of income because usually one partner (I’m not going to address that it’s probably the woman here, otherwise the feminists will come around again).

4,300 and 318k is OK. After the child, you should calculate what approximately remains as net income and what, for example, childcare costs in your area.

I suspect the horse will be left behind. At the latest when the child is there. Either no time or money.

How much does a horse cost monthly?

Without a child, we want to save about 500-600 euros per month. I think it’s even possible to save more. At least I hope so.

The horse costs about 300 euros per month with everything included. However, my girlfriend is so attached to it that it will never be neglected...
Without the horse, I would actually worry less.

I have no experience regarding the additional costs in the house, but 700€ per month is calculated too high. For two people with everything, it should be max. 500€. It's somewhat similar to the apartment. We are still building, but I have asked friends and for them, with two children, the additional costs are max. 500€.

I see it a bit differently. On the one hand, it is not a new building. Therefore, the reserve fund should be higher than for a new building. With just over 1€ per m², you are not generous, and for the additional costs, at about 2.63€/m², you are also not far from the estimates a bank makes.

Even if these are not direct additional costs, one should not underestimate that you spend more money on the house and garden compared to an apartment. Especially in the first 2-3 years, the hardware store bills have already had an impact on our household budget. These are not huge amounts individually, but they add up over the year.

Nevertheless, I do not see the project as unrealistic. Moreover, time is on your side. Given the current economic situation, the salary should still improve here and there until the child arrives.

Without a child, we want to save about 500-600 euros per month. I think even more is possible. At least I hope so

The horse costs about 300 euros per month with everything included. However, my girlfriend is so attached to it that it will never be neglected...
Without the horse, I would actually worry less.

You would be surprised how priorities can change with a child. Just the time for the horse will be missing for a while. Many then opt for a shared riding arrangement. But you still have some time for that.
Since you live in NRW, the daycare fee is likely dependent on gross income. Take a look at the table to see what you would pay for full care for U3 (so worst case). You will probably be shocked. The child benefit does not really cover that.