House buying - No idea what one can afford

Hey Henrik,

I think the reason why the "people" here go into such detail is because you haven’t yet stated the following:
"Ok, so first I have to pay off my debts and preferably build up some equity equal to the incidental costs (approx. 30 - 50,000 EUR) before I start building or buying a property"

To me, it seemed here as if you didn’t exactly see it that way and would rather want to start IMMEDIATELY. Personally, that would be far too risky for me, but everyone is different.

In any case, I wish you good luck and success with your further search and considerations. Since one usually doesn’t find a house and/or a plot of land overnight, maybe by then you can already have paid off debts and built some equity.

Best regards
WildThing

Yes, but it is also a misconception that well-off academics with debts get a 110% financing + renovation costs and repayment of small loans easily approved by banks. We are not in the USA yet. When I still worked in sales, we also had civil servants who were in debt rejected. Their argument was always "You can’t reject me, I am a civil servant with xk net income and I’m untouchable."

Maybe so, but I personally preferred a craftsman or worker who had a small net income but was also frugal. It’s a risk assessment by the bank. Who do I want and who do I not want in the portfolio.

The new guidelines only make things stricter. Income assumptions have to be made by the bank up to retirement age and beyond.

yes, but it is also a misconception that well-off academics with debts can easily get 110% financing + renovation costs and the payoff of small loans from banks. We are not yet in the USA. Back when I was still in sales, we also had civil servants who were in debt get rejected. Their argument was always "You can't reject me, I am a civil servant with xk net income and unfireable."

Yes, that may be true, but I preferred a craftsman or worker who had a small net income but was also frugal. It is a risk assessment by the bank. Whom do I want and whom do I not want in my portfolio.

The new guidelines only make things worse. The bank has to make income assumptions up to retirement age and beyond.

Save yourselves the trouble..the original poster is simply resistant to advice. That’s just how it is. Everyone has to run into their own luck/misfortune..

Embarrassing what’s going on here, one should be ashamed in part. Where would our economy be if there was no one like us?

Why embarrassing? Because people openly show you what is going wrong? Do you tell the bank clerk to be ashamed because you don’t get a loan?

The economy would probably be exactly where it is now.

Despite having a child, my wife only took 1 year off, then immediately worked full-time including 24-hour shifts also on weekends.

I myself am out of the house 13 hours every day, not because I have to, but because I want to and my job is fun.

Then congratulations, because not everyone enjoys their job.

Your wife’s work ethic is more than commendable, but based on your previous statements, I find it extremely difficult to see zeal for work as the reason.

Without wanting to accuse you/you all of anything, it would not be unreasonable for me to think that the reason for the quick return to work could be found in the lack of savings. Because you have really extensively explained to us that saving is not really your thing.

You contradict yourselves when you all say that we could pay everything off and save without any problems within a short period? That’s exactly what I said, that a bank sees it that way too? Our outstanding debts are much less significant than in other cases, a third of that amount.

You talk as if we couldn’t pay off the debts at all - I don’t understand that.

The problem that many see here is not the debts themselves, but that you had to build up debts at all with your salaries.
It would be a totally different discussion if the reason for your debts—no matter how high—were a wedding plus a student loan.

But you explain it yourself: you are still going into debt with 6,000€ net (!) in order to afford your standard of living.
How is that supposed to work with a house?

I also agree that such a high loan CAN have a disciplinary effect, but one should still be able to reflect on what savings are needed and the next vacation should not cost 10,000€ as a result.

Buying/building a house requires more than just saving a bit and servicing a loan.
You are your own master—that’s great, but it also brings a lot of obligations and responsibilities.

As already mentioned by someone above, you shine here massively with questionable statements and—excuse me—play the sulky child when someone puts you in your place a little instead of sugarcoating everything for you.

A completely different topic is the way here in "everyone-on-one" mode people really bash each other. I would like to experience that face to face and look everyone in the eye while doing it.

Wrong, it’s not about bashing, but about clearly telling you what is possible and what is not.
You can fulfill your wish for face-to-face right away:
Make an appointment at the bank and ask for sufficient money given your current situation for the 1960s house you mentioned.

yes, but it is also a misconception that wealthy academics with debts can easily get 110% financing + renovation costs and repayment of small loans from the banks. We are not yet in the USA. When I was still in sales, we also had civil servants who were in debt and got rejected. Their argument was always "You can't reject me, I am a civil servant with xk net and unbreakable employment."

Yes, that may be, but I preferred a craftsman or worker who had a small net income but was also thrifty. It is a risk assessment by the bank. Whom do I want and whom do I not want in my portfolio.

The new guidelines only make things stricter. The bank now has to make income assumptions up to retirement age and beyond.

Right, friends of mine, both civil servants, good income, want to buy a house, are now really having problems getting a loan because they have no equity. One bank said it would only have to be 20,000, but it can't be done completely without. A steady good salary doesn't help with that either.

Right, friends of mine, both civil servants, good income, want to buy a house, are now really having trouble getting a loan because they have no equity. One bank said it only had to be 20,000, but it doesn't work at all without any. Even a steady good salary doesn't help.

I liked the math teachers best who then wanted to explain the difference between effective and nominal interest rates

my favorite teachers were the math teachers who then wanted to explain the difference between effective and nominal interest rates

But they have been on a red list since March 21st, right?