Is home financing feasible? Experiences?

Hello everyone!

We (35/35, two small children, the 3rd is on the way) probably have good chances on paper to buy or build a house, but at the same time this project makes us a little bit scared, so we ask for realistic experiences.

Data about us:
- Net income: €5,500 (13 salaries)/€1,800 (but soon on parental leave and then about €1,300 parental allowance for 12 months)

- €500 child benefit, from August €750

- Condominium (80 sqm), currently still owner-occupied, should then be rented out. The local standard cold rent is about €1,000.

- Equity: €300,000 (nothing inherited, all saved in the last 7 years), of which €250k should go into the house purchase.

Everyday expenses in total (average of the household book of the last 5 months, including daycare costs etc.): €2,900.

Reserves for vacation: €500
Savings for children: €400.

Monthly savings rate: between €3,000-4,000.

Well. At first glance our income situation looks very privileged.
The bank says we can easily go up to €750,000 if we find the right property. However, we simply don't dare and are considering terraced houses up to €500/550k, which are, however, rare.

Anything between €700-750k stays longer on real estate portals and hardly sells, we would probably have good chances there, but apparently do not have the right mindset.

I need input from outsiders, how do you assess our situation, would you also tend to credit installments of €2,500 per month in our case, considering 3 children and a good salary and rather a medium part-time salary?

Thanks in advance!

€2,500 installments are exactly 1/3 of your household income ([Ehrenwert], child benefit is also real income). Very healthy ratio. With 1.5% repayment (and special repayment option, since you apparently can save well) you will easily be done by retirement. It will then be a loan amounting to €600k, so gladly a house for around three-quarters of a million.

I have no problem with that, neither as a banker nor with my personal opinion.

- Net income: €5500

Total daily expenses (average from the household book of the last 5 months, including daycare costs etc.): €2900.

Reserves for vacation: €500
Saving for children: €400.

Monthly savings rate: between €3000-4000.

Where is the typo? Whoever has €5500 available cannot save €4000 if they have fixed costs of €2900.

I don't know why your post was deleted, but I understand: it's +1800, so 7300€.
Anyway, it's not worth it for me to reply here anymore, because too much gets deleted every minute.

Where is the spelling mistake there? Whoever has 5500 available

5,500 + 500 (13th salary converted) + 1,800 (soon only 1,300) + 500 KG currently equals 8,300 household net

5,500 + 500 (13th salary converted) + 1,800 (soon only 1,300) + 500 KG currently are 8,300 household net income

I don’t know why your post was deleted, but I understand: it is +1800, so 7,300€ In any case: it’s not worth it for me to reply here anymore, because too much is deleted every minute.

I do not include child benefits...