House purchase - Is our planning working?!

An alternative to renting would also be a joint purchase and joint loan. Then your parents pay directly into the repayment and you save yourself all the hassle. You have to calculate it, that is quite complex by comparison. But maybe an alternative, also for the creditworthiness and thus possibly the interest rate. The transfer of ownership to you later should not be an obstacle.

This is what our current income and expenses look like at the moment:

Income:
Man’s salary: 2300 gross/1550 net
Woman’s salary: 2750 gross/1750 net (which includes an allowance of 250 euros gross, which would presumably disappear after parental leave)

= 3300 net

Expenses:
Insurances -400
Miscellaneous (mobile phone, gym, account fees, phone/internet, GEZ) -215
Food/clothing -800 (rough estimate, probably even less)
Gasoline -150
Rent(s) (utilities, 2nd GEZ, 2x household and liability insurance) -1215

We currently have two apartments (a paid-off condominium and a rental apartment near my parents).

3300-400-215-800-150-1215=520

Without the apartments, that would be 1735 that we currently have available per month for the house.

Added to that are the 600 euros from my parents. So 2335.

If I were on parental leave, it would look like this:

Man’s salary: 1550 net
Woman’s salary: 1078 net + 150 child benefit

= 2775

Minus expenses -400-215-800-150= 1210
- 250 euros expenses for the child (we could still pay the initial equipment from untouched 5000 euros) = 960
Added again would be income from rent = 1560

I was thinking the following, correct me if I’m wrong:
In the beginning, we would have 2335 euros available, so we would go relatively high with the monthly burden. Let’s say 1300 euros and 600 incidental costs, so that we could still set aside 435 per month.

If we had offspring, the following scenario would be conceivable:
Now we would have 1560 available and would repay 750 monthly on the installment and 600 incidentals. We would then save 210 euros per month again.

That doesn’t sound like much at first, but the above are all expenses where savings could also be made. The gym could be canceled or we usually don’t even come close to the 800 euros for clothing and food.

After one year of parental leave, I would probably take up a part-time or a 3/4 position again, so that the additional costs for daycare/kindergarten would also be covered.

Could you give me a more precise assessment of whether this is all a naïve calculation or if it would be feasible?

Of course, much also depends on how much the condominium is sold for. Between 200,000 -250,000 is all possible and of course also influences the equity we bring in. At the bank, we would have just under 50% equity with interest rates under 2%.

I will now respond to your other contributions in a separate post.

Do you mean "financial advisor" or building consultant/purchasing advisor? How much money you need results from the total requirement minus your equity.

We were at both the Sparkasse and with financial advisors who cooperate with 400 banks and search for the cheapest and suitable loan there.

But none of this is so critical, IMHO, because you are not financing at the pain threshold, but in my opinion are quite comfortably below it.

My parents also raised three children on a net income of 1800 back then and paid just under 750 euros rent per month. So everything is possible... and we never lacked anything.
I even find my calculation above quite generous, since we currently do not go without anything and go on vacation twice a year.

If you rent out, you have to pay tax on the rental income. That is the disadvantage. The advantage is that you can claim expenses related to this income for tax purposes.

I roughly skimmed the pages on the internet. But it doesn’t seem to make much difference for us, as we only take 66% of the minimum rent index and probably are also below the income limit. But I will call the tax advisor directly on Monday and make an appointment.

An alternative to renting out would also be a joint purchase and joint loan

Neither we nor my parents want that. So it will come down to renting out the apartment.

No idea if that is decisive, but we are currently not married and therefore both have tax class 1. The wedding is planned for next spring... we have already set aside the money for that accordingly. Presumably, after the wedding or when the child arrives, it will also be possible to adjust the tax classes.

3300-400-215-800-150-1215=520

Without the apartments, that would be 1735, which we currently have available per month for the house.

In addition, there would be the 600 euros from my parents. So 2335.

What kind of numbers are these?

The problem will be that rental income is not considered income by the house bank, as it can disappear. At least that's how it was for me. On the positive side, you don't have children yet, so both salaries will be used for the calculation. Living expenses are taken from one couple. The bank's calculation looks different with a child.

And a tax tip: it used to be that if you rent to a first-degree family member, you were only allowed to charge half of the local customary rent and could deduct the rest as a tax burden. Maybe that still applies today?

Well, the positive thing is that you can turn the [etw] into money. Otherwise, when the child is there, it will get tight, and the rent always has to be paid. And always remember, the bank will finance you if it fits more or less... the life decision of how you want to torment yourselves is something you have to face. The gross income is definitely only for the man not a hit, so maybe expandable?