House buying - No idea what one can afford

I don’t know where the rumor came from that besides our salaries we had to build up debt!? In fact, these are all loans from studies and also actually due to a wedding. The last loan was taken out 3 years ago. Since then, we have been paying off about 700 euros in loans per month, living as we live, and still have about 1,000 - 1,500 left over. And we have spent that money on things like vacations, because the plan so far was to pay off the loans as they are paid off but not necessarily make special repayments. So far, the desire for a house wasn’t as strong as it is now.

Also, one should read my very first sentence in the first post again... we are planning in the coming months/years...

The 400k house was just an example! That is exactly what it’s about. Examples of what would currently be possible (obviously nothing), what would be possible if the debts are gone, and how that then changes when you build up equity...

I see the whole thing in multiple stages of options:

1. 150% loan, as things stand now because 100% house + x % ancillary construction costs + % debt
2. 120% loan, 100% house + x % ancillary construction costs, debts paid off
3. 100% loan, 100% house, debts paid off and equity for ancillary construction costs
4. 90% loan, even more equity

The % are just examples now, but presumably everyone understands what I mean. Then the question is how much money can be put aside so that you reach options 2, 3, and 4. As unrealistic as 1 is in terms of reason and feasibility, we also won’t get to 4, not in a timeframe that suits us, since a more expensive house obviously also has a lot of ancillary construction costs budgeted, and that will already be a very big chunk.

What burdens me even more is the type of house, somehow everything is bad:
1. Old house, it should be clear what is bad about that
2. Prefabricated house, many potential problems and uncertainty of costs, e.g. basement excavations etc., something can always happen there
3. New build, basically identical to prefabricated house in terms of uncertainty, just a different method

4. An existing house but not old - these are probably the most desirable and therefore also the most expensive...

It seems to me that the OP shuts down, clams up, and unfortunately stops reading when certain 'trigger words' appear. I have read almost all the posts here. They contained many factual hints, neutral evaluations, and useful tips. Try to switch off your (by now) negative basic attitude and read the posts again with the goal of finding useful hints for YOURSELF.

What probably confused me and maybe others is that you wrote in your first post that you have 1000 euros left over per month. Left over means to me that it is extra, so it is not spent. But that is not the case with you, you spend your entire income again. So nothing is left over. This is not meant as a judgment that nothing is left over.

What confused me and maybe others is that you wrote in your first post that you have 1000 euros left over per month. Left over means to me that it is surplus, so not spent. That is not the case with you guys, you spend your entire income again. So nothing remains. This is not meant as a judgment that nothing is left over.

yes, there is a surplus and then it is spent on vacation and it’s gone. Maybe someone else defines leftover differently. I would and will never, for example, set aside pots each month for vacation, Christmas gifts, contingencies, etc. I also understand that others do that and it makes sense, but that’s not how we are.

I also don’t know exactly what my cash withdrawals are spent on, that would be way too stressful for me. We also buy groceries when we shop and don’t have a monthly budget for food or anything like that.

I think many don’t understand this point because for many that is probably an absolute no-go to live like that.

I also don’t know exactly what the total sum of the loans is, that would probably be a no-go for many too. I have to look for the documents.

But that’s exactly the point...

When building a house, it is essential to create reserves.

What do you do if the heating breaks down and a repair costs €5,000?

Either you’re lucky and it’s summer, then you save for 5 months and afterwards replace the heating.

If it’s winter, it must be replaced immediately, otherwise it gets cold.
So? Another loan to deal with.

The broken heating is exemplary for everything else in a house that you, as the owner, simply have to take care of. As a tenant, you just call your landlord (again, the owner) and he has to take care of it.

No one wants to do you any harm, it’s just to show you that creating reserves and saving something aside is just as much a part of owning a house as a nice front door or the building financing.
It should simply be taken for granted.

We also don’t have any monthly budgets or pools for anything. If we want to buy something, we just buy it. But still, we at least have a separate account that we save into monthly. From that, you can make larger purchases or have a reserve for emergencies. How do you do it when you go on vacation or buy something bigger? Do you then check how much is in the account and spend that on it? My advice would be, especially if you want to buy/build a house, learn to save. Especially with a house, I think it’s important to have reserves. Money can suddenly be needed at any time. Or if someone becomes unemployed, to be able to bridge that time well. There are plenty of other scenarios that can happen. And if you’re not thrown off course by reserves (and can maintain your standard of living), you’ve done everything right. Maybe that’s what many people want to get at here too.