Is financing feasible? The large numbers scare me

Costs all in €700,000
Less €200,000 equity, €20,000 will be kept for liquidity

There is still a remaining debt after all?! Is it sensible not to consider this further?

I think the loan is quite high. The income is good, but for Bavaria not really something special. (Sounds harsh, but it’s true) Do you also want to modernize the house energetically? I don’t find 20,000 in reserves particularly much. Rather the lower limit. But that’s my personal opinion. (I have more reserves with a new build) On the positive side, you obviously live very frugally and have already put quite a bit aside. Nevertheless, I would prefer to look for a more modern and cheaper house. (What do you need 1000sqm of land for?) Greetings from the Altmühltal Earth

I don't know how the rest of the readership feels, but I am often amazed when I read what some people – especially from the south of the country – are willing to pay for their own four walls or rather bricks, wood, and land...

500,000 euros loan and about 1,700 euros repayment means a 2% amortization. Even with a 20-year fixed interest period, there would still be a large six-figure amount left after that term, and by then one would already be in their mid-50s... everyone has to decide for themselves, but personally, I still find it very risky despite substantial equity.

Hello Tobi,

many greetings from the south of Bavaria.

A crucial question you have to answer: How much is the large garden and every additional m2 of garden worth to me? Because a large part of the amount goes to the land. If 1000m2 costs 50k, 200m2 more or less is almost irrelevant. But for you, that's 100k or more.

So if the garden is not that important now, I would keep looking.

For me, the m2 costs 1000€.
So I know the situation.
Developers therefore only sell terraced houses with 125 to 225m2 and semi-detached houses with 150 to 300m2 of land here.

If it's your dream property:
Doable but of course tight.
I would turn the student apartment immediately into cash and not wait until the follow-up financing. That lowers your loan now and you have no sales risk in x years.
A factor of 26 seems rather low to me.
Here a factor of more than 30 is more common.
So maybe a bit more than 90k is possible.

If 700k is all in:
275 equity
415 loan
1800 rate about 5% annuity
Term about 24 years.
Due to the high amount, I would go for a 20-year fixed interest period.
Remaining debt at the age of 55 would be about 70k. Interest rate increases won’t hit you that hard.
Overall, as others have already written here, sporty but doable.

Best regards
ghost

Hello everyone,

Somehow I don't think anyone has asked whether you earn the nearly 3k€ gross or net.

If it's gross, I wouldn't even consider it, as there would be nothing left for private retirement provisions or a risk buffer in case of unemployment due to, for example, economic conditions or illness (unless you are civil servants).

Net, so the 1800 is definitely net, plus your good 3000 net would probably be alright. Then you would be at about 30 to 40% of the household income for the annuity and additional costs. That still allows for building a cushion for emergencies and a small private retirement provision.

But as I said, if you both earn 3000 gross, stay away.