Is financing feasible or are we overextending ourselves?

2019-07-18 03:45:40

4700Salary and 430k financing?
My opinion: naively heading for disaster.

If a house, then smaller/cheaper. Everything else will not make you happier in the long run.

2019-07-18 05:09:10

4700 net plus bonuses are probably more than 80% of Germans have as income. What bothers me more, however, is that the 430k are only theoretical since the house does not exist yet.

2019-07-18 06:38:11

We sat down with our finance guy about 4 months ago to check the project. Back then, we ended up with an interest rate fixed for 10 or 15 years at 1.7% and a monthly payment of 1250 euros. I had thought about the 250 euro difference for a building savings contract or something like that. But from what I’ve read, interest rates are currently just as low with a 20-year fixed rate. The 1250 euros would have been a 2% repayment. But I can check again or I’ll go to the bank in 2 weeks once I have all the offers and know what it will cost.

Before the birth of our daughter, with the same salary, we were able to save 1400 euros (with 600 euros rent) and still enjoy life.

Already have. The plan is for 2 or 3 in the end. The calculation above includes my wife’s salary reduced to 35 hours and, due to commuting, a second car. The goal is for her to eventually find work so close that we no longer need a second car. But the calculation has to work as it is.

A "finance guy" will always tell you that it’s doable.

How much equity have you saved up during this phase? Or is it no longer there?

2019-07-18 08:08:45

We have 30 notes of equity. So probably not enough for it to make a significant difference.

But through Vitamin B we can do quite a bit ourselves. (Onkel ist Elektriker, Vater kommt an Farben, Putz, Dämmung zum Einkaufspreis, Dämmung kleben wir selber, ne komplette Rüstung hat unser Nachbar, Verwandter hat ne Sanitärfirma etc pp). Here I hope to save at least one or two notes in the end.

2019-07-18 08:31:51

Oh dear, then it's definitely off the table. With 30k you can't even think about building a house, sorry.

That would be a 110% financing, because 30k isn't even enough for additional costs. In my opinion, that just doesn't work well in the currently very overheated real estate market.

2019-07-18 08:34:38

Oh dear, then it’s definitely off the table. With 30k you don’t even have to think about building a house, sorry.

That would be a 110% financing, because 30k is not even enough for the incidental costs. In my opinion, something like that doesn’t go well at the currently very overheated real estate market.

Can you elaborate on that?

If the installment fits with a long fixed interest rate? Where do you see the problem?

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Is financing feasible or are we overextending ourselves?

Farilo

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Mad_Max

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