House purchase financing - cost breakdown realistic?

Hello,
I would be interested in your esteemed opinion on our plans.

General information about you:

[*]Who are you? HE & SHE + CHILD
[*]How old are you? 33, 30, 1
[*]Are there children? Yes, 1 / no more planned

Income and asset situation:

[*]What income do you have (net)? HE 2000,- + company car / SHE 1400,-
[*]How much child benefit do you get? Yes, 219,-
[*]How much equity do you have? 50,000,-
[*]How much equity do you want to invest in the house project? 30,000,-

Housing costs:

[*]current rent including utilities 800,-
[*]electricity 48,-
[*]phone, internet, mobile phone 60,-

Mobility costs: Will be eliminated, only one car and it is a company car with private use.

Insurance costs:

[*]liability insurance (also animals) 10,-
[*]disability insurance 25,-
[*]household insurance 7,-

Living costs:

[*]groceries 500,-
[*]restaurant costs 50,-
[*]personal care/drugstore 50,-
[*]miscellaneous 100,-
[*]smoking 150,-
[*]daycare/school fees (and meal money) 220,-
[*]leisure 100€
[*]other purchases 100€

Savings:

[*]800,- daily allowance
[*]200 ETF retirement provision
[*]50 ETF child

Other expenses: None / no loans

Income and expense totals:

[*]total income 3619,-
[*]total expenses 3270
[*]balance 349

General information about the property:

[*]How large is the plot? approx. 800m²
[*]What is the standard land value? 31€/m²
[*]New build, old building (year of construction), house type? Old building
[*]Garages? 2
[*]How large is the house? (living area / usable area) 150m²
[*]Condition good from the outside view

Construction or purchase costs:

[*]Additional acquisition costs (notary, court, property transfer tax, broker) 15,000,-
[*]Purchase costs: 180,000€
[*]Renovation and/or refurbishment costs 30,000,-
[*]Total costs: 225,000
[*]Don’t be surprised, it is in the deep East, prices are still reasonable there.

I hope I haven’t forgotten anything. If so, you will surely tell me.

We have not yet been to any bank or broker.
But we have a property in sight that we learned about through word of mouth. So we have not been able to view it yet and the price is not entirely certain, but it will be around that figure.

What do you think?
Can we manage it with our income?

Regards & many thanks.

Can we manage that with our income?

The costs are just "peanuts". With total investment costs of €225k and equity of €30k, there remains a financing requirement of €195k. With an interest rate of 1% and a repayment rate of 3%, that's €650 per month. Are you really worried about that? P.S. Sometimes I wish I lived in the deep east with these prices ;)

Yes, I do actually worry because I am simply very careful when it comes to money. Thank you for your assessment.

You write that the condition looks good from the outside... But how does it look inside? Are you sure that 30,000 euros will be enough for the renovation / modernization? The next point is the loan-to-value ratio calculated by the bank. Unfortunately, with older properties, this is often significantly below the real market value.

Financially, I would also say that it should work.

You write that the condition looks good from the outside... But how does it look inside? Are you sure that 30,000 euros will be enough for the renovation / modernization?

For comparatively little money in relation to the purchase price, one should definitely go through it with an expert if seriously interested; it is definitely worth it.

well, cheap property that fits the income in the East. How secure are the jobs in times of crisis? Otherwise, green light. Renovation could hurt if it turns out to be more expensive