Is financing feasible? Single-family house 155 sqm

Good day,

since we are currently involved in financing discussions and both are very security-conscious, we are still somewhat uncertain whether we can manage the monthly repayments.

Salary 1: 2600 net (tendency also rising)
Salary 2: 2400 net (definitely increasing annually, as [Beamter]) --> in 3 years 3000 net - that will remain for now.

Age: 29 and 23

Current total net income: €5,000
Children are planned in about 6 years

House: €400,000 - €420,000
Plot of land: €100,000
Additional construction costs: €70,000

Equity: €50,000
Reserves for the future, which should not be included in the financing: €30,000
Additional reserves from building savings contracts/contracts that we want to use as special repayments in about 2-3 years: €15,000
No loans currently running, 2 fully functional cars with 60k kilometers.

Loan amount: approx. €550,000

After the first meeting, the repayment amounts to approx. €1,600 monthly, depending on the term/bank/type of loan.
Duration approx. 32 years. 3% repayment.

We are very frugal and are already saving about €2,000 just for the house. We can certainly repay well during the first 6 years, also in the form of special repayments.

It will definitely be more difficult when the 1st and also the 2nd child arrive and the lady then works part-time.

Due to the civil servant status and the flexibility of part-time, we certainly have an advantage here and don’t have to live on just one salary.

€1,600 is certainly not without challenge, but I think it is definitely manageable. What do you think?

Wow, I am also a civil servant and also earn 2,400 net - where do I have to go to make a definite 600 euro jump in three years? I want that too!

The 1,600 should be doable.
Don’t forget that the parental allowance is limited to 1,800 euros. With 200+1,800+2,600 = 4,600 it should be doable, I think.
Your wife must be clear, however, that she will have to go back to work (even if only part-time), more than a year at home will then be difficult to impossible.
If that really doesn’t work, you have to consider reducing the repayment for a certain period of time, you are so young, in my opinion you don’t have to repay 3% continuously.

I think that shelf is too high for you. I can't understand at all how anyone with 5k net income (possibly -PKV) AND the desire to have children could even come up with the idea of wanting to finance 550k. For me personally, that would be at least 2k income too little.

So you have been saving for a house for 2 years, which is already positive.

Personally, I also find the income too tight, especially when children come into the picture for the loan amount.

So for the salary increase I would only assume 300€. That is realistic in 3 years. 2,400€ net and 23 years sounds like a higher service level. That would probably mean a mandatory promotion to A10 and a maximum increase of one experience level. In Hessen that amounts to around 200 to 250€. If you still get married and there is the family allowance then it is about 80€ more net. You only get the 600€ if you change the tax class but then you correspondingly have less. In terms of the rate, that would of course be quite a burden and probably one full-time and one part-time (more than 50%) would have to work so as not to work just for the house. You write that you are very security-conscious, the high rates could possibly weigh on your mood. With 200€ more net we have a rate of 730€. With that you can sleep peacefully.

So the girlfriend is definitely going on maternity leave with A13, that is 100% certain.
So we always have the salary secured, which is definitely very good.

I am aware that the time when the woman does not work at all or only works 20-50% when children come will not be easy and that you have to live very frugally. As I said, we are currently already living very frugally and also know what it means to save for such a project and the dream of a single-family house.

Currently, I am still considering whether we should adjust the repayment rate to 2.5% and then come to an amount of around €1,400 or so. I also think that we would gain a bit more security that way.

Nevertheless, I think we could also manage €1,600. Of course, it always depends very much on the standard of living. In the first years when children arrive, there simply won’t be any vacations... We definitely have a very "traditional" attitude on this and probably think much more nuanced than society nowadays.

As I said, we are aware that the woman will have to go back to work as much as possible. That is also absolutely no problem, especially not in the public sector. The workplace is in the same town where we are building. So we also have a lot of flexibility here.

My salary is very likely to move above €3,000 net by that time. Of course, I cannot fully factor this in, but I have to consider it as well. We also have a good chunk of equity still on the side, which we could always draw on in "difficult times" and consider part of it for the repayment.

In addition, we can repay around €2,500 in the first 6-7 years. Here we could also adjust the amount a bit and put some aside.

It would also be interesting whether another bank can offer a repayment rate adjustment. Possibly 2-3 times during the entire term. This was not offered to us in our current offer. That would of course be very helpful for difficult phases when the woman is at home.

Of course, it is all a matter of calculation...