Initial considerations on: What can we afford?

Hello dear community,

For about a month now, we have been dealing with the idea of buying or building a house. We still need to read up on a lot of knowledge, but we wanted to already ask ourselves what we can actually afford. Our situation is as follows:

Both in our early 30s, unmarried, one child, a second child would be nice, steady jobs.

Available capital: approx. 100,000 EUR
of which savings account for child's education: 5,000 EUR
of which buffer on current accounts: 15,000 EUR
leaves available equity of approx. 80,000 EUR

Monthly net income approx. 4,500 EUR (annual bonus of approx. 3,500 EUR not included)
Current cold rent 800 EUR
Possible monthly savings rate 1,500 EUR
At 2% interest and a term of 25 years, a loan of approx. 350,000 EUR should be financeable according to our calculations.

Thus, I estimate our financial framework at 430,000 EUR.
Plot should be approx. 650-800 sqm. At prices of 170 EUR per sqm in the Berlin metropolitan area, that would mean approx. 130,000 EUR.
Alternatively, we are considering moving to the neighboring town. That would mean a 4-minute longer train ride, but plot prices there are rather 140 - 150 EUR per sqm.
I would roughly estimate ancillary construction costs at 40,000 EUR.
That leaves approx. 260,000 EUR for the house. The current target is 150 sqm of living space. We probably can’t afford a basement.

Does this look realistic based on your experience? What kind of house could one afford with a ratio of 260,000 EUR for 150 sqm? At current construction/purchase prices, is only the lowest standard possible, or would a bit more be feasible?

Thank you very much for your time and help.

Have a nice weekend, Mr. Stein

Follow the Baunebenkosten thread, I would rather estimate 60,000€. Kitchen, paving, floor coverings, etc. really cost a lot of money.

15 K€ in the checking account? What do you want to buffer there? Good... different topic. I also come to about 360 K€ with a 1500€ savings rate and 5.5% annuity. In Brandenburg, that could certainly work with 260 K€ for 150 sqm excluding additional costs - also somewhat more than the lowest standard.

I had read that one should plan three months' net salary as a buffer. It could be that in the next 2-3 years the car will also be replaced with a newer one...

That's good too - she just wouldn't keep it in the checking account :D (mehr sollte der Kommentar nicht bedeuten)

That's good too - she just wouldn't keep it in the checking account :D (the comment was not meant to imply more than that)

What would be a good alternative for such an amount at the moment? You don't get interest anywhere anyway ;). I recently had an offer from my bank: fixed deposit, 50 months term, at an amazing 1% interest *g*