Is financing feasible? Stuttgart's Speckgürtel

2020-07-11 09:22:45

The person on Amazon can limit their consumption if they are not shopping compulsively.. the family with 4500 net income, on the other hand, can probably only save on food and clothing.

2020-07-11 09:34:42

It's all a question of consumption tendency. Those who aren’t too greedy for consumption have a lot left over each month with 7k without having to restrict themselves much. Those who shop on Amazon more often than they brush their teeth, rather not...

But that’s the crux of the matter here: the two manage to save just 2.4k with almost 8k monthly income (including bonuses). That means 5.6k is spent every month. You have to manage that first, and it certainly doesn’t indicate that the two are particularly good at restriction.

2020-07-11 09:35:22

Aren't you paid according to IG Metall? The salaries seem extremely high for your age in this industry. For an OEM, that is the absolute top of the pay scale.

Both tariff agreements are IG Metall. The pay group results from the net income.

I don't know if I’m assessing you correctly, but are you the type who still tends to have rather student-like spending habits? Regardless of whether there are 800 euros, 2000 euros, or later 4000 euros per person in the account per month, you somehow don’t really know what you’re missing and what you should spend more money on. Except for the car for commuting, of course.

If that applies, during the time of earning double full-time (or full-time plus 30 hours part-time) you will be able to make substantial extra repayments. And you should do that. Or are you more the consumption type? Then think very carefully about the high loan amount.

I can only speak for myself, a somewhat higher net income in total than you and my wife earns a bit part-time as well, and honestly, before the house, I didn’t know what to do with the monthly cash. Apart from buying stocks every time the checking account “filled up” or partially putting it into the non-interest bearing fixed deposit. And the extra repayments can then almost become as high as the installment calculated monthly, once you have built up some reserves for topics like unplanned car purchases.

And , such amounts are quite possible in the IG Metall BW and some enter the highest pay grade immediately with the right qualifications. Not unusual.

We practically started at zero equity after graduation and have since built up about €170k. Our savings rate has been constant, except for the year of parental leave with child 1. We organize saving according to the principle "pay yourself first." That means expenses have grown with the salary since starting the job.

2020-07-11 09:53:23

current warm rent 1750 €

Currently we save 2,400 € monthly.

This should then become new
Rate:

to be about 2200 €.

Generous: I’d say ancillary house costs 500 €

there still remain 1450 € possible additional savings rate per month.

From that, one can even cover the current difference of the wife from standard salary to parental allowance (1250€) and still 200 € possible savings rate remain, and all that AFTER a good standard of living.

That’s the crux of the matter here: the two manage to save just 2.4k with nearly 8k income per month (including special payments). That means 5.6k get spent every month. You have to manage that first and it certainly does not indicate that the two are particularly good at cutting back.

What restriction would be necessary in your opinion? If you currently calculate the rent, about 4150 euros are practically spent/saved every month for current and future living. And living well, if you can afford it, I find okay. That does not automatically mean that you cannot adapt your money to changed life circumstances.

Unlike some other threads, real construction costs are assumed here.

2020-07-11 10:19:46

That's nonsense. 1. Here, 170K!!! equity has already been saved, 2. a rate of 2200 euros is calculated while for the 450K financing with 4500 income and little to no equity, rates between 1200 and 1600 euros are often stated, which would then leave about 3K for everything else, and here still well over 4K 3. Here, a better interest rate is certainly achieved through the 170K than with the mentioned 100% and more financings. For one, absolutely nothing must happen, for the other nothing big. In my opinion, that's already a difference

? - maybe for people who can neither calculate absolutely nor relatively.. I did not write about 100% financing. Family 4.5 requires correspondingly 80,000 equity. The equity is already accounted for in the loan amount. Relatively, it remains as I described it. Although with high incomes, one can go beyond the third for housing costs. Because absolutely, family 7 logically has an advantage compared to family 4.5. But this only fully applies if they have not scaled their lifestyle in many respects (car, house, furnishing, consumption, vacation, clothing, ..). The assumption that everyone automatically manages to largely divert their income increases almost completely is certainly not the rule. Regarding the specific example, I have already said that it will work. The OP already stated that he is proceeding according to current principles of private financial planning (pay yourself first). The spending side is therefore controlled. But this is certainly not the usual case.

2020-07-11 10:47:07

What I would be interested in – by now I am quite familiar with all the parameters involved in loan calculation. What has always unsettled me until now – especially with larger loans of 300,000 euros and up – is how much free funds should remain after deducting the loan + possibly homeowners’ association fees & after deducting all living expenses (food, insurance, etc.)?

I calculated for a project with a 410k loan that we would end up with 700-800 euros in free funds per month. From that, we would now still have to cover vacations + possibly private retirement provisions. Everything else, like food/clothing etc., we have already deducted with an experienced flat rate.

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Is financing feasible? Stuttgart's Speckgürtel

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