How much house is in it?

Soon things will explode in Germany, I see it at work almost every colleague wants to build. Since I built 3-4 years ago without problems, most of them come to me and ask me about it.

For 80% of the colleagues it doesn't really make sense as they have no capital, yet loans and contracts are signed until you feel sick.
Consumer loans of 20-30k euros are taken out to cover the additional purchase costs.
The parents are included in the plan to live in the granny flat and to be co-debtors immediately.

Interest rates for 10 years around 2.5% and more

Rejected financings at Sparkasse and Volksbank, but then suddenly work through financial managers and at the same time a refinancing and various contracts are concluded.

The hype breaks people's necks

Go about it sensibly, buy yourselves an apartment, see how you manage the payments and then plan the next step.

PS 30k additional building costs for a 370k house I consider too little.

That's right, inheritances, salary increases, bonuses, profit shares & child construction allowance are all virtually included at all costs.

I did not calculate with any of this. I have a real 80% financing, children are out of the fee-paying kindergarten age. Cars are paid off. No loans running. My wife works 3/4 time. Everything is settled.

And still nonsense that I should worry with a €418.5k loan and a cash buffer of €30k at 1.68% interest over 20 years with 3% repayment.

Then some people earn just €700 more per month, children are still mid-term away but want a €560k financing at 100%-110% over 10 years and rejoice or see everything quite relaxed. That is all totally insane.

No wonder there are diligent savers who are already looking forward to the next 10 years and openly declare that they are happy when all these fake financings burst. I basically find that shabby that existences and families always hang on such things.

The worst thing about this shortsightedness is, if interest rates rise, and you assume they will, then both new-build and existing prices will fall. If you then sit in your overpriced financing/place you will no longer get rid of your houses at today's price. Ever thought about that?

Net income > €6,000,-...... And then so many naysayers here? How many here can even prove that? And where today do you get a plot of land + house for < 500,000,-?

Anyone who comes here with arguments like "Max. X % of income for the installment" must not neglect that fixed costs are not proportional. Car, insurances (except LV), furniture, food, and vacation are not paid as a percentage of income. In addition, many with that income also have a good occupational pension plan from their employer.

Of course, expectations rise once you get used to the standard of living. But the TEs apparently haven’t been earning that long and are not “spoiled”.

Whether the jobs are secure in the long term and whether children will come, of course, must not be overlooked, but the two have to assess that for themselves.

How interest rates and prices will be in 10 years, none of us know.

And where can you get a plot of land + house for < 500,000 nowadays?

Certainly not in and around metropolitan areas, but no one has claimed that either. There are quite a few households here that earn 6000€. That is also due to the issue itself.

You just must not forget, it’s only 6000€ until children arrive, then it’s parental leave and part-time for X years. You also must not forget that there are people who never leave part-time again because the fulfillment with children is so huge. Added to this are the unpredictable expenses such as daycare including care. At least I didn’t inform myself about daycare fees when it wasn’t necessary.

Then the 2 full salaries with now 6000€ without expenses become only 4800€ with child expenses! If then a payment of 2500€ hits this income and the standards do not decrease, then you only have 2300€ left for all other items.

Everything is correct, but €2300 is still more than many others have at all. That is a question of priorities. AND it does not have to turn out that way. They have to set the priorities themselves, but I do not agree with dismissing it as pointless or unreasonable per se. Then the vacation just doesn't happen – of course, you have to be prepared for that.

In Hamburg, for example, a plot of land already costs at least 250-300K. And that's not particularly large. Munich, Stuttgart, etc. are even worse.

And whether that will really be reversed someday? Construction prices may (!) possibly decrease a bit, but when it comes to land (close to the city), I don't believe that.

Net income > € 6,000,-......
And then so many doubters here?
How many here can actually prove that?
And where do you get a plot + house today for < € 500,000,-?

Anyone who comes here with the argument "Max. X % of income for the installment" must not neglect that fixed costs are not proportional.
Car, insurance (except life insurance), furniture, food, and vacation are not paid proportionally to income. In addition, many with this income also have a good company pension from the employer.

Of course, demands increase when you get used to the standard of living. But the TEs apparently have not been earning that long and are not "spoiled."

Whether the jobs are permanently secure and whether children will arrive must of course not be ignored, but the two have to assess that themselves.

How interest rates and prices will be in 10 years, none of us know.

Thanks, I was seriously starting to worry if I was going completely nuts. In our family, my mother has always been the absolutely safety-conscious party and even she reacted quite positively when we told her about our idea.

We both have a company pension plan. To be honest, I don’t know exactly what conditions my fiancé has right now. Of course, we deducted those in our household income calculation. For me, that’s €260 and I get my employer’s saved social contributions on top of that.

As for demands: We have fully smart-equipped our apartment, which wasn’t exactly cheap. A new car, a new coffee machine were added too. But by now we really have everything one could need and if we spent more money, it would only be on nonsense (although one could argue about nonsense when it comes to the smart home, but that’s just our “hobby” – in return, I have only 5 pairs of shoes and 2 handbags^^).

Well, maybe we should reconsider the scenario with a fixed interest rate for 10 years, I agree with you there. But that’s exactly why we’re now exploring the options and looking closely at what makes sense and what doesn’t.
And again: this was just the first appointment with a financial advisor. That was to get an overview of options.

Still, really thanks at this point for all the criticism here. It’s like always: You look to see what you might have overlooked, you’re glad someone thinks of it, and you take it in. And with other things, you say to yourself that you’ll manage it. I don’t know where I’ll be in 10, 15 years. Whether I’ll really earn that much more money than today. I only know that I do good work and have never been fired. And I know I’ve managed everything so far because I’m not someone who buries their head in the sand or screams hysterically at a problem. And my partner is cut from the same cloth, otherwise it wouldn’t have worked between us for so long.

Everything is correct, only €2300 is still more than many others have at all.
It’s a question of priorities. AND it doesn’t have to come to that.
They have to set the priorities themselves, but I do not agree with dismissing it as pointless or unreasonable per se.
In Hamburg, for example, a plot of land already costs at least 250-300K. And that is not particularly large. Munich, Stuttgart, etc. even worse.

And whether that will really be reversed someday? I don’t believe it. Construction prices may fall, but I don’t believe that for land (near the city).

A 100-110% financing is unreasonable per se due to the total costs in relation to the house price. There is no two opinions about that. We all know that ownership is not wealth building. Rather, it has to do with quality of life, nothing more and nothing less, but that also lies in the eye of the beholder.

The priorities are clearly different from case to case, as are the circumstances. What is mostly forgotten is to consider the entire loan period. In this case, the TE has expenses of €1700 without rent; if daycare fees of €500 are added, which is not uncommon, the savings rate is exactly "zero".