Is financing feasible or are we overextending ourselves?

Hello everyone,

we want to build our little house this year. But we are still worried that we might be overextending ourselves with the amount.

Would you be so kind to take a look? If I should go into more detail on certain items, that’s no problem.

Total income
Currently 4700 Euro
Optional 5000 Euro if I increase to 40 hours

House installment ~1500 Euro (400-430k Euro loan)
Additional costs 300 Euro

Total house 1800

Car 1 350 Euro
Car 2 350 Euro
Insurance (BUs, legal protection, ZZV, HR HP UF) 330 Euro
Telekom 30 Euro
Cell phones 40 Euro
Netflix/Prime 15 Euro
Hairdresser 80 Euro
Daycare 300

Total: 1495

Remaining 1405 (1705) Euro for leisure, food, clothing, and such. Special payments (vacation/wedding money + annual 2500 Euro profit sharing) should be saved for special repayments or vacation. When my wife no longer has to commute (as soon as she finds a job in the city), the second car will be dropped.

What do you think? Feasible or naively heading for disaster? I would appreciate a second or third opinion.

Best regards

Hello, and where is the savings rate for things that come up unexpectedly?? €1,500 with what repayment? 2%? You already know the high residual debt? Have you managed to save equity so far?

Very relaxed relations. There is nothing more to say.

Basically doable, but it would be too tight for me. The question is also whether you want children or already have them?

Basically doable, but for me it would be too tight.

Why? 1/3 of the income for rent/payment is quite reasonable. In Munich, for example, the ratio is already significantly worse. How high does the income have to be for a 1,500€ rent/payment? The daycare is already included in the calculation. If a family can’t make ends meet with 2,900 € per month (plus Christmas bonus etc.), then I don’t know anymore...

First of all, always calculate conservatively with such calculations, so that you don't crash right away.

For a loan of 430,000, 1,500 is in my opinion too little repayment. Incidental costs of 300 are also tight. Therefore, one should calculate with 2,200 euros. Then fixed costs of 1,500 euros are added, which only cover the bare essentials. Therefore, I increase it to 1,800 just to be safe.

Then 4,000 euros are gone. Salary is 4,700 euros. That makes a difference of 700 euros.

It is very hard to live reasonably on that, as nothing has been paid yet for food and living expenses.

Also missing are reserves for vacation, larger purchases, and other events.

As I said, it’s possible, but I wouldn’t do it.

For a complete risk assessment, the equity ratio is still missing.

Either higher income or lower loan!