Katastrophy
2018-09-26 09:30:05
- #1
Hey, thanks to everyone.
So, except for the insurances, these are the expenses from the household budget book we have been keeping quite meticulously for half a year.
For food, these are only the costs we have for daily expenses. Restaurant visits and special treats I put into the "one wants to afford something" budget.
You are right about the insurances; I forgot to include that my boyfriend will pay for his life insurance himself starting next year (his parents have been paying it for him so far) and I also missed the household contents insurance.
But overall, it's easily included in my rounding, which I generously set at 700 euros in the end.
We have relatively low expenses overall because we don’t have expensive hobbies.
And again on the topic of the house: It keeps coming up that we want to build a house for 600k and that it should be possible cheaper. That is not true. The 600k includes 250k for a plot of land. And depending on what you get there, the loan obviously shrinks significantly. For example, we currently have a plot in mind that is wooded but not particularly dense. The trees could be chopped down by ourselves. And that would cost us "raw" (without additional costs) 135k. Ergo, we could reduce the loan amount by 100k already just with that.
We have a meeting with an independent financial manager on Saturday. We will go through the basics then. On the Interhyp homepage, I made a comparison with 20 years fixed interest rate and a monthly rate of 2,000 €. That looked like a good option for us.
On the subject of saving more: Last year alone, material costs for house construction caused prices for pure house building (without additional costs and land) to rise by 5% (German average – BW probably more, but I found no reliable figures on that). That is 17,500 for a house costing 350k.
If you also factor in how much land prices are rising, we quickly reach 25k per year. And I dare to doubt that this will change in the near future. Even if Mario Draghi is removed, the ECB’s low interest rate policy must be maintained because currently, it is the only reason keeping some European states alive.
What I want to say is: Do I really want to save 25k per year (!) for the next years just to compensate for house construction and land inflation/bubble? That means throwing away 25k per year. Economically, in my opinion, that is complete nonsense given the current market assessment.
Please correct me if I am too wrong on this.
So, except for the insurances, these are the expenses from the household budget book we have been keeping quite meticulously for half a year.
For food, these are only the costs we have for daily expenses. Restaurant visits and special treats I put into the "one wants to afford something" budget.
You are right about the insurances; I forgot to include that my boyfriend will pay for his life insurance himself starting next year (his parents have been paying it for him so far) and I also missed the household contents insurance.
But overall, it's easily included in my rounding, which I generously set at 700 euros in the end.
We have relatively low expenses overall because we don’t have expensive hobbies.
And again on the topic of the house: It keeps coming up that we want to build a house for 600k and that it should be possible cheaper. That is not true. The 600k includes 250k for a plot of land. And depending on what you get there, the loan obviously shrinks significantly. For example, we currently have a plot in mind that is wooded but not particularly dense. The trees could be chopped down by ourselves. And that would cost us "raw" (without additional costs) 135k. Ergo, we could reduce the loan amount by 100k already just with that.
We have a meeting with an independent financial manager on Saturday. We will go through the basics then. On the Interhyp homepage, I made a comparison with 20 years fixed interest rate and a monthly rate of 2,000 €. That looked like a good option for us.
On the subject of saving more: Last year alone, material costs for house construction caused prices for pure house building (without additional costs and land) to rise by 5% (German average – BW probably more, but I found no reliable figures on that). That is 17,500 for a house costing 350k.
If you also factor in how much land prices are rising, we quickly reach 25k per year. And I dare to doubt that this will change in the near future. Even if Mario Draghi is removed, the ECB’s low interest rate policy must be maintained because currently, it is the only reason keeping some European states alive.
What I want to say is: Do I really want to save 25k per year (!) for the next years just to compensate for house construction and land inflation/bubble? That means throwing away 25k per year. Economically, in my opinion, that is complete nonsense given the current market assessment.
Please correct me if I am too wrong on this.