House buying - No idea what one can afford

Whenever I read about the AV

No BU, no AV, no RLV, no household insurance, no Rürup, no Riester and going on vacation 3 times is also not possible not even dental supplementary...

I think I need to rethink my life

For orientation, cold rent + savings should not exceed 5% of the loan amount as an annual figure.

For you, for example, 900# + 1,500 = 2,400. Per year, that is 28,800.

Therefore, we are talking about 550,000 EUR. However, I do not see that for you for two reasons. Since 100%+ financing, I would rather tend towards 500,000 or less.

And what I see as much more critical: What about the "unusual" months? There seem to be about 11-12 of those per year, otherwise the zero equity cannot be explained. Especially not the debts. Why have debts at all with that income?

So homework:
Pay off Schilden. That should be done in 6 months. And then build equity for 2 years. During this time, deal intensively with the topic of house building.

At the moment, I see your potential rather at 200,000 EUR (900×12/5×100).

Hello and wow. I didn’t know the forum, but so many answers within one night – amazing

The nice thing about an anonymous forum is that you can speak openly. Of course, I was also aware that there are many here who don’t simply accept the current situation and give me advice (which of course there was), but rather make accusations unknown to me or show total incomprehension without even knowing further details or anything else.

Thanks for the many answers. Even if sometimes it seems as if someone has no understanding for my thoughts or as if I somehow appear very amateurish, exactly what I hoped for in terms of suggestions etc. comes up in this discussion.

I’ll try to answer the questions or respond to the things mentioned so far.

- The hottest topic in this discussion is why we still have debts despite the high income. The explanation is relatively simple and can be attributed to the modern 0% financing world. Although we are both academics and not completely stupid, we simply live our lives and are the opposite of “save first, then buy.” I claim, like many people. The proportion in such a forum is probably smaller though.

I could say now that it annoys me in hindsight or something, but no, I decided that myself. We just came back from a 14-day vacation that cost around 10k in total. (Too bad I can’t see the face or two now ) We spend our money and the repayments are simply part of the monthly fixed costs. So no focus on saving and paying everything off, but it is paid off in installments. Mostly it still comes from the studies, which had to be self-financed expensively and there were no home savings contracts or other income from any source of the parents or so.

Only during the vacation and now recently did the topic of a house come up again because we had a great one there. The plan was otherwise for us to first deal with it when everything is paid off and maybe capital is available. But I’m writing here now to find out whether it makes sense or not to do something earlier. Because only in 5 years will it be questionable regarding interest rates and as sad as it is, the time until the end of life is shorter.

And we want our own garden... unfortunately we don’t have that, for the child. Moving into a rental house on short notice, of which there aren’t really many, is also stupid then.

A few reactions from me or questions and answers:

1. Why is divorce a risk and why is it then a total loss – simply because you have to sell the house, so it’s just about early resale being a problem?

2. Unfortunately, there is no house bank. We started in 2016 and are completely with an online bank. Everything is much easier there, except the topic probably now Where do you go “independently” or does it only work with an “offline” bank?

3. 4,500 EUR income and saving 3k? Then obviously there are no children and/or no rent? Otherwise, I can’t imagine how that should be a somewhat nice life? What about vacation? Clothes? Food???? I also sometimes only eat lunch for 5 euros, but you can’t do that all the time. With a corresponding JOB where both work full-time well over 50h a week you have to treat yourself to things that cost money. You can’t always cook yourself, you go out to eat etc... I also need suits and shoes etc... and those don’t cost 200 euros off the rack...

4. We naturally both have risk life insurance for 25 years and 300k each in case of death... that alone for the child/children. Disability insurance would of course also come with a house purchase.

5. What is meant by “abnormal” months? We actually have a constant income.

That’s a start... everything seems to concentrate on our monthly expenses... Roughly, I have to update it - about 2,500 euros for FIXFIX costs, so what always goes away... rent, car, insurance, loans, internet, etc.

In addition, about 1,500 euros that I call fixed-variable, so what is paid separately but you can’t refuse, mostly groceries, clothes (mostly for the child of course), fueling, and many cash withdrawals for lunch break money, weekend activities, etc.

So roughly about 4,000 EUR “fixed” goes away for us.

Please don’t misunderstand me - I’m not saying I need a house 100% now and it has to work at all costs. I have already thought that it makes sense to be debt-free first, that then makes a massive difference in the money left over and then can flow into the house.

It only bothers me that it takes forever to save tightly first to be debt-free faster, then save again for capital. That’s just bad as described above because then you only have a house in 5 years. So I think that the banks should also evaluate it the same way, that at the beginning it is perhaps calculated more tightly, but after the 5th year it is something quite different.

But that sounds and probably is so naive, I can already imagine the answers.

At the end of life, one decides how life was. Fortunately, we have found the happy medium and have a house and spend the rest of the money ☺ Without being able to afford a certain luxury, I would not want to live. (Verhältnis 4500 zu 3000 ist mir auch zu schleierhaft) But to each their own.

Wow, a 10k vacation, you are something special! You forget you are in a house building forum, here your salary is rather average.

With the small difference that most of those building or who have built here were fortunate enough to have equity and are better off after 20 years overall.

As I said, for you it amounts to a 120% financing, every bank charges for that with an easy 0.5% more calculated over the entire term. And from that, I can afford a few vacations.

Everyone can live however they want. But when the bank's rules kick in for home financing, the computer doesn't care whether the vacation was nice or if you really want a piece of garden.

You are confident about your debt service capacity.

I recommend sitting down with one of the larger mortgage brokers (they have "access" to 200-300 banks). They will enter your data, and you will see a forest of red traffic lights in the pre-scoring, but maybe also one yellow/green little tree.

Perhaps you will find 2-3 banks that can offer you 120%-135% financing (you must not forget that jokes like kitchen or furnishings do not count as collateral values; so you need to add that on top of the 120% you require).

But as I said, you are far from the interest rates you usually deal with. So not 1.3 or 1.4% + repayment, but rather 3,x + repayment.

Don’t you have an MLP advisor?