So we are looking at more like €600,000. From my perspective, way too much in terms of income.
How do you get to €600,000?
With ancillary purchase costs, I’m at €550,000.
Let’s add a maximum of €5,000 for painting and moving.
Name the current cold and warm rent. These amounts plus the €600 savings are available for the house plus additional living costs (€400 or so).
I would leave rental income out for the reasons stated. If you still depend on it to avoid losing money every month, I would stay away from the property.
Currently, we spend around €800 in total for housing (including heating, electricity, internet, etc.)
So with the €600 savings, that would be €1,400.
On the other hand, there are around €1,100 installment + €200 reserves + €500 additional costs = €1,800 that we will have to plan for housing in the future. So €400 more.
However, the current €800 is also extremely low for our area. A move would be unavoidable anyway and for the next apartment we would rather have to count on around €300-400 more, so about €1,100-1,200 all-inclusive. That plus the current savings, then we are back at the costs that the house also causes.
And that is exactly our dilemma, and that’s why we think it would be better to put the money into a house than to transfer it to the landlord’s account.
I would also exclude parental allowance, that is temporary. That means you have "only" €3,000 income. But you want to cover:
- €1,100 installment (will be too little)
- €400 additional costs
- €200 reserves
Then €1,300 remain for:
- Food
- Clothing
- Internet, Netflix, Mobile phone
- Insurance
- Outings
- Car (tax, insurance, repairs, gasoline)
- etc.
for 3 people. No chance.
As soon as the parental allowance runs out, my wife will work more again and thus replace the €280 parental allowance with about €480 income. The total household net income will then increase by about €200.
We would then be at around €3,500 that we can plan with in the future.
Do you still think that is too little?
They also say as a rule of thumb: maximum 1/3 of household net income for repayment. With the current €3,300 we would then be exactly at €1,100.
I bought last year and gathered my experiences with credit advisors (talked with about 8 advisors/direct banks and 5 house banks to hammer out the best deal).
Interest rates change slightly day by day. You can check them daily, for example on Check24 in the loan calculator. They mostly use the same Europace network, and the conditions are very comparable.
You can also approach the bank directly that has the best conditions in the loan calculators and negotiate again directly with the bank without an advisor.
Check24 is a good comparison option, but if your goal is to find a good financing partner, you can’t avoid an advisor you trust. After all, you will be dealing with this institution for the next 25 years (unless you repay early after 10 years). Saving 0.05% interest and then not having an actual contact person is a bad deal in my opinion. Especially if financial bottlenecks should occur, a bank is advisable that does not immediately hand your case over to the next debt-collection GmbH. Otherwise, everything important has already been said. At some banks, you can also reserve interest rates for 7 days without having submitted an application yet. This is exactly something you can discuss with your trusted mortgage advisor.
Ok, thanks to both of you!