Hello everyone,
Our original Plan A was actually to build a house in the next two years and to build up equity beforehand.
However, contrary to expectations, we have now found a nearly perfect property for us where we can very well imagine buying it. We have been able to negotiate the purchase price down to currently €300,000.
Now the question arises whether this would even be feasible, since the amount unfortunately still needs to be increased accordingly by the broker fees, notary costs, reserves, furniture, etc. So in the end we would land at about a €365,000 loan. Without any equity, of course, initially counterproductive, but the plan was originally quite different.
We both currently earn €1,900 net respectively, which will likely increase significantly for both of us in the coming years. Accordingly, our combined net income currently totals €3,800. Children are planned earliest in 4-5 years, then accordingly higher salaries, with which we could possibly cover parental leave, etc. The sum would thus remain at least at this level.
There are no debts or loans.
Monthly expenses are various insurances about €350
Fuel, mobile phone, etc. about €350
Groceries and other costs about €250
These amounts apply to both of us and have been approximately at this level for about two years.
For the house, I would calculate €450 ancillary costs.
If I add up all values, I end up with about €1,400. As repayment, we have imagined a maximum of €1,100 - 1,200 monthly.
So about €1,200 would remain in the end (vacation, reserves, possibly a second car, child, etc.).
A good friend is a self-employed construction finance advisor and another friend also works at a bank, who are supposed to arrange this loan. We had a conversation several months ago - then with lower salaries still - where we would have gotten an interest rate of 1.7% over 27 years, but for a construction where €100,000 would have been via KFW.
We are 26 and 25 years old respectively and imagine setting the total term to a maximum of 35 years, preferably 30 years.
Do you think the amount is generally too high for our salaries? More than €1,200 we don’t want to pay per month as repayment anyway... or is it manageable?
The whole idea is pretty bad. No equity + low income for the desired loan. And children in a few years?!! What will you do then? Personal bankruptcy? Say hello to Peter for me :)
Seriously: Save equity first and have children, THEN buy a house OR increase income significantly!