How much house can I really afford?

  • Erstellt am 2015-03-24 10:02:44

zenni

2015-03-24 10:02:44
  • #1
Hello,

my girlfriend and I have a consultation appointment on Thursday and would like to get some independent opinions beforehand.
A brief introduction about us:
Me, 29 years old, employed managing director, net monthly income (14x) 2,200 euros. Trend increasing in the following years
Girlfriend, 24 years old, permanent employment, net monthly income (12x) 1,250 euros. Trend remaining stable

So far, we have planned to have 1 child in about 5 years. A second child is not planned. But that doesn’t mean we will not think differently at some point.

After reviewing real estate prices, we found that we would need about 250,000 euros if we buy an existing property. In the case of a new build, you would have to reckon with about 280,000 euros (with bad luck 300,000).

We have about 35,000 euros available together; we want to contribute about 20-25,000 as equity. We want to keep the rest as a buffer. I have not talked to relatives yet. However, something might still be feasible there.

Currently, we pay about 800 euros warm rent. I put about 400 euros per month on average into my instant access savings account. My girlfriend also about 400 euros. In addition, there are Christmas and vacation bonuses that I hardly ever touch. Royalties also come in. But it has to go well for that. Therefore, I prefer not to count on those. Overall, we currently have 800 euros rent and 800 euros that we save per month.

I thought that we would plan about 950 euros monthly purely for financing, plus incidental costs of about 200 euros (in the case of a used property then, of course, more incidental costs). According to this calculation, we would put the remaining money aside and make extra repayments together with vacation and Christmas bonuses once a year. The advantage of the 950 euros would be that I could cover this alone for some time if necessary.

When I look at other plans, this seems rather conservative and cautious. Or am I mistaken?

What do you think? Realistic?

Thanks for your answers.

Regards, Henning
 

zenni

2015-03-24 11:11:50
  • #2
Forgotten: The construction area will be [Niedersachsen] around [Bremen]. The car is a company car; a second car is not planned.
 

ypg

2015-03-24 11:25:13
  • #3
How expensive is the building land with you, meaning a plot? Make sure that a financing option is calculated for you that does not burden your girlfriend too much. With that salary, she will be the one staying at home with a child.
 

Doc.Schnaggls

2015-03-24 11:34:53
  • #4
Hello Henning,

what type and size of house do you have in mind?

Are the additional construction costs (approx. 30 - 40 thousand EUR) and the plot of land already included in the EUR 280,000 - 300,000?

Regards,

Dirk
 

zenni

2015-03-24 11:52:28
  • #5
Hello,

Developed building plots cost between 55,000 and 75,000.-
I had planned major items in case of new construction approximately:
180,000 house (about 135m²)
70,000 plot (not too large)
50,000 additional costs including outdoor facilities

Whether we can manage with that, I can only say once I actually have an offer. Unfortunately, it will probably always be more expensive...

Thanks for your answers!!
 

Doc.Schnaggls

2015-03-24 12:23:27
  • #6
Hi,

EUR 180,000 for 135 sqm is quite ambitious...

That would be just EUR 1,333 per sqm. Based on experience, you usually calculate at least EUR 1,500 per sqm for a Kfw 70 house, and that is still WITHOUT painting and flooring work and WITHOUT basement, kitchen, garage, carport, etc...

If the price limit is fixed, you will either have to reduce the living area or only be able to install a very basic level of fittings.

I would recommend that you ask on Thursday what the bank could offer you at most in terms of a loan, given your framework data - then you will definitely have a clearer view.

Regards,

Dirk
 

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