How much financing volume is feasible?

  • Erstellt am 2015-03-06 10:51:09

sonnenkind80

2015-03-06 10:51:09
  • #1
Hello everyone,

we are currently dealing with the topic of building a house or are already quite far along in the planning.
The first figures are on the table and we are asking ourselves whether we should, can, want to "put ourselves through this." Mathematically it is quite feasible, but there remains the feeling of uncertainty about whether it is realistic.

Framework conditions:
He, 35: Engineer in a senior position, net €4100, annual special payment €9000
She, 33: Civil servant, net €2600

The basis for financing planning for me is not the situation today, but tomorrow when there will be 2 children (the first in October this year, the second around 2017). Thus, I calculate a maximum of €1000 net to be contributed by my wife to the total income. The rest, such as additional income through child benefits, more through the difference to the actual parental allowance, more through actual earnings if she works fewer hours, go into the considerations as additional expenses to compensate for the delta regarding everyday costs and additional incidental costs.

Thus, I assume a monthly net income of approximately €5100.

A single-family house with a separate granny flat as a separate living unit is to be built, which will bring in around €500 cold rent income.

Land is available (€75,000 paid in cash).
Additional equity currently approximately €100,000
Additional equity of about €100,000 for special payments from the transfer or sale of the parental house, inheritance, etc., roughly projected in 15 years.

Now the question to the experts regarding financing volume.... What would be feasible and manageable to have paid off within 25 years and what monthly rate would be necessary for that?

Question to those who perhaps have a similar income situation and already have experience with costs for house, incidental costs, children, etc.: What would you set as the maximum monthly rate?

Thanks!
 

Bauherren2014

2015-03-06 11:23:41
  • #2
No one here will be able to answer your questions.

Your income and equity are very comfortable, which certainly allows for quite a bit. You can roughly calculate with the relevant calculators on the internet what loan amount would be feasible in principle. But only you can know with what rate and loan amount you can live and sleep well. Of course, that is always also a question of your expenses. So, how much is left over each month and how much will that be when the children are there? No one can tell you that either, because it varies for each person. One pays 100 € per month for childcare, another 500 €. You should definitely plan for higher additional costs than in an apartment, also consider extra insurance (term life, occupational disability, building insurance), property tax, possibly private health insurance for the children, etc.... In case of doubt, just calculate roughly and include a certain buffer. Just as a comparison, which doesn’t have to apply to you because it depends on the individual: We have a similar income, 2 small children, and built a house; childcare for 2 full-time daycare spots costs about 500 €. We pay an installment of 1,300 € (we didn’t want to pay more) and will be done after a maximum of 25 years (also without special repayments).

However, I would initially leave the anticipated inheritance/house sale from the parents completely out of the calculation; in 15 years so much can still happen. It’s nice to have the money then, but I wouldn’t plan on it.

One last quick question on the side: Why do you want to have a granny flat to rent out?
 

backbone23

2015-03-06 11:33:16
  • #3
Hm, you don’t really provide a basis on which someone could respond to you.

But as an example: 60% loan-to-value = roughly €300,000 loan. At 2.5% fixed interest for 25 years, the rate for full repayment would be about €1,350. So without special repayments or residual debt.

If you include special repayments, you could reduce the rate or increase the loan amount. The same applies when considering a residual debt.

If you really want to calculate with €100,000 in 15 years, you could choose an interest rate fixed for 15 years and target a residual debt of €100,000. Assuming 1.5% interest, the rate would then be about €1,370. The loan would then be repaid with the inheritance. If that doesn’t work, the residual debt would still be manageable.

Values for 80% loan-to-value: €437,500 loan, assumed interest 2.7%, full repayment rate €2,020, 15 years with residual debt €100,000 €2,280.
 

ypg

2015-03-06 11:59:07
  • #4
Your salary is suitable for a solid financing. Also for the currently targeted 25 instead of 30 years. But of course, financing is based on the loan amount – so if you reach for the stars and want to spend twice the standard, THAT can also become tight. Honestly, I never understand why someone wants to pay off debt in the shortest possible time. Rent should not be included, just like the upcoming inheritance... I don’t understand that: is it already calculating with the impending death of a close relative? Consider: you are the next generation, your children can also speculate that they finally want to turn the house you are currently building into liquid assets ;)
 

Bauexperte

2015-03-06 12:04:17
  • #5
Hello,


Why, or for what purpose?


You should quickly free yourself from the idea of this money, or the thought of it! No one has a crystal ball that reliably predicts what your parents’ health will require in 15 years – or even sooner. It may be that they suddenly die after a long – until then largely healthy – life. It may be that an accident destroys this prognosis, as well as a treacherous illness like MS, cancer, or similar. In such cases, it might make sense and be necessary to sell the property to cover the costs of placement in a care home (because care in the granny flat doesn’t work) ... and ... and ... and; the examples are numerous.

If there “should” be “a little something” for you again in 15 years, then be happy in 15 years. But not today!

Rhenish regards
 

Voki1

2015-03-06 12:13:56
  • #6
Maybe Simone R. had imagined things differently with Jopi (*clears throat*).
 

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