How much house is in it?

  • Erstellt am 2018-09-21 13:59:50

Alex85

2018-09-30 18:51:57
  • #1
And if the parents want to sell, your security is gone. Or if they pass away and the inheritance is divided, your home loan is immediately tied to it.
 

Katastrophy

2018-10-01 08:47:16
  • #2
As I said, that was merely a report about what we discussed with the financial manager. It was by far not the last conversation with the last financial manager/banker. We will at least get an offer from my house bank and check out 1-2 independent financial managers as well. The conversation on Saturday was supposed to serve as an orientation to see where we stand and whether we would be financed at all. So we are quite satisfied with the first result. And honestly—if it doesn’t get better than 2.6%, then we can live with that (or we would probably reduce the fixed interest period to 10 years and go with 1.9%). Then we could increase the repayment and still save something.
At least that’s how I feel, if the alternative is saving and waiting until building land becomes even rarer and more expensive, building materials become even more costly, and interest gradually rises again. It’s already starting a bit, my aunt said, who has worked in finance for 30 years and has been looking for building land herself for 2 years (though in Switzerland).

And on the subject of children: I’ll sketch the worst case in our situation. I’m basically a planner, and children only come into the picture when everything else fits. Then I would also be a full-time mom for the first few years (at least until Junior starts kindergarten—then I would work 50% in the mornings to be there again in the afternoons).
Nevertheless, things might not always go as planned and an “accident” can happen. We all know about the pill vs. stomach flu stories. Then I would have to give up the idea of being a full-time mom, but since my man and I both work in SAP development and consulting, we have the option to work from home. My man does that all the time, and he even has the chance to work completely from home and only be on site for important meetings, like his boss, which happens about once every two weeks. And it would be no problem for me to work 50% from home without even needing to talk to my bosses about it. For more home office I would have to discuss it, but I don’t think that would be a big problem. And even if—between my 50% and my boyfriend’s options—we would manage that well.
And even if I only worked 50% for the first 6 months after giving birth (not home office, but actual 50%), we could manage the income to keep paying off the house. My man alone would already bring in his 3.4k, and I would still bring in at least half of my net income.

Long story short: Even if it may not seem that way to some, we really thought it through before we “arrogantly” decided that we could “afford” 100% financing. And now you can feel free to burn me at the stake for that sentence.
Oh, speaking of burning: If one of us dies/falls ill/ends up in a wheelchair—yes, that’s a risk. Yes, that should be factored in. Right, in that case, we would have a problem. But please, which couple wouldn’t in such a case? Take a couple where the man earns 6k solo and the woman nothing. Great, if the woman falls ill, the house can still be paid off. But what if the man dies? What I want to say is: The possibility that one of you dies always exists. And you should keep that in mind or have it as an unforeseeable risk in the back of your mind. But you should also at some point be able to live with the fact that you will never have 100% security in life. That’s life. And if this terrible case ever happens, you will somehow manage it too.
 

lastdrop

2018-10-01 09:09:04
  • #3
The risk of a primary earner's loss of income can be insured, that's what they are for.

By the way, working from home does not mean "casually" taking care of a [child]. That can go very wrong quickly.

And having the parents' assets seized because I cannot afford my financing is, in my opinion, pure madness.
 

Zaba12

2018-10-01 09:17:08
  • #4
Everyone is responsible for their own life. Therefore, all that can be done here is to warn, nothing more.

The amount is simply huge under the given conditions and has awakened everyone who finances "sensibly" here.

At least you as the OP are a woman here and can actively manage the topic of children.

Besides, I think it’s good that you’re considering increasing the repayment rate while simultaneously reducing the fixed interest period. The problem with this story is the refinancing in 10 years. If then interest rates are at 3-4%, you gain nothing on the installment due to the high remaining debt. Of course, that’s crystal ball gazing. You can only manage what is currently on the table.
 

Winniefred

2018-10-01 09:17:36
  • #5
I'm not saying that you are acting thoughtlessly. And as I said, I can absolutely understand the considerations regarding increasing costs vs. saving. As for the risk of loss of income, I also mentioned just now the option of securing it through insurance. Especially if only one person brings money home, securing that person's salary as fully as possible is absolutely important.

Personally, I wouldn't involve my parents in this, but everyone has to decide that for themselves. I don't want to judge that. Last but not least, it only works with the consent of the parents anyway, and if they allow it, then that's how it is and should be accepted.

Financing only over 10 years to get a better interest rate is, in my opinion, mistaken. After 10 years, with 100% financing, you will still have a huge remaining debt, which you will then have to finance at the current and certainly significantly higher interest rates. I would clearly not do that at all with the loan amount you have in mind.

Home office with children (mine are 3 and 5), I tell you very clearly; this is easily underestimated if you don't have children. Especially when they are sick, they need a lot of attention and care. When I have the children at home, I can work about... if things go well, 3-4 hours, and mostly only then when they are taking a nap. In your industry, you also shouldn't stay at home for 5 years or more, and maybe even multiple times (several children), because then you won't be able to get back in; you will be completely left behind.

Nevertheless, you will surely find someone to finance your house, because it is certainly feasible if you stay within a reasonable loan framework and secure yourself properly.
 

tomtom79

2018-10-01 09:26:31
  • #6
Soon there will be a bang in Germany, I see it at work almost every colleague wants to build. Since I built 3-4 years ago without problems, most come to me and ask me about it.

For 80% of the colleagues it is not really sensible because there is no capital, yet loans and contracts are taken out that make you feel sick.
Consumer loans of 20-30k euros are taken out to cover the incidental purchase costs.
The parents are included planning-wise, that they live in the granny flat and are immediately co-indebted.

Interest rates around 2.5% and more for 10 years.

Rejected financings at Sp and Volksbank, but then suddenly working through financial managers and immediately another return and various contracts concluded.

The hype is breaking people’s necks.

Be reasonable, buy an apartment, see how you manage the payments and then plan the next step.

PS I consider 30k incidental construction costs for a 370k house too little.
 

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