Is financing a condominium without problems feasible?

Hello,

I have been trying to acquire property for 3 years. It simply won't be enough for a house, so an [ETW] is necessary.

About me:

m, 30 years old, single, €1600 net
Equity €101,000

My living situation:
Warm rent €660 (including garage)
Electricity €65
Internet €40
Mobile €30
[GEZ] €20
Car insurance €50
Gasoline €140
Car tax €15
Groceries €240
Beverages €35
Clothing €30
[ADAC] €10
Amazon €10
Cosmetics €15
Medications €5

So, at the end of the month, just under €200 remains. It’s very tight, but since I’m only home after 11 p.m., it has worked out so far.

I was thinking of a property around €150,000. I already went to my house bank and received a financing commitment of up to €200,000. I had a calculation made for a property with additional costs for €135,000. My own contribution would have been €35,000. So, financing €100,000 straight. Then I would have a cold rent of €450 and would pay for 34.2 years. That is way too long for me and somehow not feasible. I don’t trust myself to manage that.

What do you think?
Should I look for a smaller and cheaper property?
Or can I take the risk?

Thank you very much

Depends on the property. So you are 30. You will probably live for another 35 years. So paying rent for 35 years. Therefore, it’s better to pay for your own place for 35 years, and you will have peace during retirement. And more pension, since you don’t have rent payments. Especially for people like you, the [Wohnriestermodell] makes sense. The state contributes. But what if life changes? Single, it doesn’t have to stay that way. Place of residence can change. Properties are immovable, life is not. So pay attention to the resale value, and if necessary, the rental potential of your purchase, so that the installments are secured. You should choose a location that has some potential. Not necessarily [Schlossallee], but also not [Bahndamm Südseite].

In this situation, definitely choose a property that you can either easily rent out or possibly sell without much trouble. Do you live in a bigger city or more in the countryside?

What still confuses me a bit: about €100,000 in equity but you only want to use €35,000. Why? You pay more interest on the borrowed money than you earn on the invested amount.

And one more thing to consider. I know old people here in town who built a settlement house in 1956 and paid it off over 50 years with 30 DM, then 15,xx. The 30 was a lot of money in 1956, about a week's wage for a worker, or at least not far from it. At the end of the time, it was pocket money. While those who remained tenants perhaps paid 20 DM rent in 1956, but 500 euros in 2005. All clear?

Finance. Then I would have had a cold rent of 450€

What is the cold rent for you now in the context of buying a condominium?

What still confuses me a bit:
about €100,000 equity but you only want to use €35,000. Why? You pay more interest for the borrowed money than you get for the invested amount.

I need €15,000 for furniture and I have calculated €8,000 for painting and laying laminate. Also, I will need a new car next year. I then estimated €10,000 for that. So there would still be €30,000 safe.

What is the cold rent for you in connection with buying a condo?

I wanted to rent another apartment but saving €50 is not worth it.
Furthermore, I would have to do without a garage, balcony and good location.
They say the repayment rate should not be higher than the current cold rent. That would then apply here.