How much installment can we afford?

  • Erstellt am 2023-12-28 19:39:13

Abraxus

2023-12-28 19:39:13
  • #1
Hello everyone. I have been following the forum for a while and would now like to think one step further, maybe to take steps in the next 2-4 years towards owning a home.

I will start with the classic questionnaire so you get an overview. The costs are based on our expenses from the last few years. As a scenario, I would not like to use the current one but rather the later targeted "what-if?" scenario. The next 1-2 years we will certainly have other things to do first, as we are expecting a new family member.

General information about you:

    [*
      Who are you? Me and her, mid-30s, not married, currently living in 80m² in the big city
      [*]Children? One is coming. That’s it.
      [*]Professionally? Employees. Studied. Engineers. Real estate management & IT
      [*]How many hours do you work? From Q3 2024 both initially part-time. For the financing, I would like to consider the period afterwards, so roughly from 2025. Therefore the assumption: 30h (We will see what it really will be then.)

    Income and assets:

      [*]What is your net income?
      [LIST]
      [*]Currently: Me 3,500€ + bonus; Her 3,300€ + bonus [TOTAL 6,800€]
      [*]In the scenario (both 30h): Me 3,200€ + bonus; Her 3,000€ + bonus [TOTAL 6,200€]

    [*]How much child benefit do you get? 250€ - right?!
    [*]How much equity do you want to put into the house project? 200k


Expenses

Housing costs:


    [*]-800 cold rent
    [*]-200 additional costs
    [*]-100 heating costs
    [*]-90 electricity
    [*]-70 internet, mobile phone


    [*]-1,260 TOTAL housing

Mobility; 2 cars; public transport provided by employer

    [*]-75 car insurance
    [*]-40 taxes
    [*]-65 fuel
    [*]-70 maintenance/repairs


    [*]-250 TOTAL mobility


Living & consumption costs:

    [*]-400 supermarket
    [*]-350 vacation
    [*]-70 restaurants/takeaway
    [*]-10 insurances
    [*]-90 club fees
    [*]-680 other (joint) consumption (Everything from the bank statement that did not directly fit into one of the other categories)
    [*]-200 personal consumption (from our own accounts)


    [*]-1,800 TOTAL living & consumption


Savings:

    [*]Me: 1500€ ETF savings plan + surplus into the instant access savings account
    [*]Her: 750€ ETF savings plan + surplus into the instant access savings account


Income and expense totals:

    [*]+6,200 total income
    [*]-3,310 total expenses
    [*]-2,250 savings rate
    [*]+250 child benefit
    [*]-400 child expenses
    -----------------------------
    [*]+490 balance
    [*](+2,250 savings rates)
    [*](+800 cold rent)


Our desired property has a large plot of around 700m², is located in NRW in the Bergisches Land/Ennepe-Ruhr-Kreis area and is a house from the Gründerzeit. We are both originally construction engineers and can imagine a renovation as DIY + partial subcontracting to subcontractors.

I would like to use your assessment to calculate backwards in order to estimate the possible total budget. I want to deal with the topic to get a feel for the order of magnitude. The question is: Which loan installment(!) do you consider reasonable? Our fixed idea would be that the financing is done after about 20 years - possibly earlier with special repayments.

My personal conclusion so far: If I look at the balance, a rate of 2,500€ would be easily manageable. Subjectively, however, that seems very, very high to me. What do you think?
 

Kugelblitz

2023-12-28 19:52:42
  • #2


to maybe draw a comparison.
We are both 29, also have saved 200k, but earn about 5,500 Euros per month together.
We probably have a loan installment of just under 2,000 Euros.
We wouldn't want to do much more.
I think 2,500 is realistic for you.
But it is up to you if you feel comfortable with such an installment... it would be feasible with the salaries.
 

xMisterDx

2023-12-28 21:16:23
  • #3
Is that then a reduction from 35 to 30 hours? Even then, the part-time net income doesn’t add up like that ;)
Your mobility costs for 2 cars are more than naive.

You have nicely itemized everything.
Currently, you pay 1,260 EUR for housing. That will easily increase to 3,000 EUR. Mortgage, higher utilities for a bigger house, insurance, etc.
Your savings rate of 2,250 EUR will then be almost depleted. So for the purchase of two new cars, you will have almost nothing left to save.
 

ypg

2023-12-28 23:07:30
  • #4
If you go from 3500 full-time to 3200 part-time, how many hours are we talking about?

The problem will be: taking costs based on the last years (2020 - 2023) as a basis for 2025/2026, that does not work.
For example, the savings rate for a new car is missing.

I would definitely adjust these figures: 90€ clubs vs. 10€ insurance … there is a gap. I am not a fan of overinsurance, but some occupational disability, supplementary health or household contents insurance is probably still missing. Building insurance is a must, as well as liability insurance.
Food, drinks and child costs should probably also be adjusted. With your almost 1000€ "miscellaneous" you are above average. These items should be checked and analyzed by you. 1000€ for something that "doesn’t fit anywhere" is definitely too high. Money is being burned there without knowing what for.
I cannot say anything about the loan installment. Possibly also consider how many hours can be worked with a child.
 

HilfeHilfe

2023-12-29 05:08:42
  • #5
Hello,

the part-time calculator does not fit. You should use the common calculators available on the internet. I am missing the information on what you have saved so far. I would estimate a maximum of 2k for the installment. Especially for additional costs in an older house, these should not be underestimated.
 

jens.knoedel

2023-12-29 09:42:24
  • #6
As long as the numbers are correct, a payment of €2,500 is easily possible with a net income of €6,450.

Anyone who cannot manage living expenses of almost €4,000 net for three people in their own home does not have an income problem but an expense problem.

Even as a bank, we calculate only a flat rate of 50% of the income for living expenses. And that is a conservative banking view.
 

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