How much can we afford?

  • Erstellt am 2018-12-27 19:20:09

nordanney

2018-12-28 11:18:05
  • #1
With your income, proven saving ability, and not the "financial burdens" of children, it is all quite relaxed. There are enough who do not want to be so conservative with your framework conditions. Without worries, I would see half a million as a loan with the income. Researchers (then "living" with somewhat less) also 750 k€ and more.
 

Jean-Marc

2018-12-28 11:34:34
  • #2


No, that's not how I calculated it. With a notarial purchase price of 500,000, as a buyer I am at about 567,000 euros including incidental costs (including broker). Minus the 100,000 equity, 467,000 remain that I would need from the bank, and with a 1,700 euro annuity over 25 planned years, that would no longer be enough. In addition, the bank is known to include a security buffer.
I would view 500,000 euros pure purchase price critically as a responsible advisor.
 

nordanney

2018-12-28 11:45:52
  • #3
With €5,000 net per month, the TE can be totally relaxed. There is also a €2,500 monthly payment which is not a big deal (15-20 year fixed interest period, I wouldn’t go longer) - with a normal lifestyle, vacations etc. are also included.
 

Jean-Marc

2018-12-28 11:54:57
  • #4


No question: Of course, they could still get more from the bank, but the requirement was €1,700 after all. In our case, prospective borrowers have to fill out a self-disclosure form in advance, in which, among other things, they are asked what installment amount they would be willing to pay. It’s not just about finding out whether the customer can assess themselves correctly, but also about what monthly burden they would feel comfortable with – and that is then no longer questioned (unless they really have no clue). As is unfortunately often the case with some independent financing brokers, trying to push a young couple, who currently pay €700 rent and are used to that, into a loan with a monthly repayment of €2,500 would never be an option with us.
 

Winniefred

2018-12-28 12:10:26
  • #5
I always view excessively high amounts critically as well. What if the income decreases at some point? If someone loses their job and the new job is not as well paid. And at 35... the biological clock can still start ticking in 4-7 years, then maybe a child will still come. They would not be the first couple to realize quite late that they still want a child. Financing at the limit should generally be avoided in my opinion, so I absolutely understand the OP's skepticism. You just have to leave a buffer for unforeseen eventualities. Personally, I think if it can somehow be avoided, it's better to calculate pessimistically and then you can sleep better and keep the house in case an event occurs that leads to less income.
 

Winniefred

2018-12-28 12:12:29
  • #6
What would you actually have in mind? I mean regarding a house? You live in Stuttgart, that's an expensive area. How far would you be willing to move out of the city? Would a condominium [ETW] even be cheaper than a house for you? How big should the house be? If you actually stay just the two of you, it doesn't have to be a big house, does it, or do you definitely want 160m2?
 

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