Is house planning realistic at all?

2015-12-23 14:02:04

Good day,

I am new here and at the moment my girlfriend and I are planning our future. Now I am wondering for how much € I can plan a house that I can realistically still pay off before my retirement. However, we have not yet been to our house bank with our plan. We still don't know if we would even get the loan with our conditions.

Here are the facts:
-I (26 years old) net income about €1750.
-My partner, 20 years old, currently in the 2nd year of training (€780 + €180 child benefit)
-After the training it will be about €1800.
-Own capital is about €100,000 available.
-This year we bought a condominium for rental purposes (€60,000). It pays for itself and will be paid off in about 18 years.

House wish:
-Semi-detached house or end terrace house (not older than 30 years)
-Terrace, small garden, basement
-About 100 sqm would be enough for us
-Price about €250,000

What do you think about it? Should we take the big step and buy our own house right away or rather first a condominium? Since we currently rent (€680 including heating for 67 sqm), we definitely want to have something of our own next year. However, we believe that buying a condominium would reduce our own capital again and we would have to wait longer for a house.

Thank you in advance!

2015-12-23 15:13:26

In my opinion, buying an apartment is not worth it if you do not want to stay there permanently.

You will currently not be able to afford the planned €250,000 for a house. Equity is actually 0 (I assume it is €10,000 equity), unless there is still an "emergency fund" available. You can't even pay the additional purchase costs. Then there is also the question of whether something needs to be renovated.

In addition, you, or at least your girlfriend, are quite young. Why would you want to commit to a house at 20?

Wait until your girlfriend has completed her training, found a permanent job, and the probation period is over. Until then, you can still save "properly."

2015-12-23 16:23:19

May I ask what your girlfriend is studying?

2015-12-23 18:20:19

She is training to become an industrial clerk at a large German company. MfG

2015-12-23 19:10:16

Good day,

I am new here and at the moment my girlfriend and I are planning our future.
Now I am wondering for how many € I can plan a house that I can realistically still pay off before my retirement. However, we have not yet been to our house bank with our plan. We do not yet know if we would even get a loan with our current conditions.

The facts:
- I (26 years old) net income approx. 1750 €.
- My partner, 20 years old, currently in the 2nd year of training (780 € + 180 € child benefit)
- After the training, it will be approx. 1800 €.
- Equity capital is approx. 10,0000 € available
- This year we bought a condominium for rental purposes. (60,000 €). It pays for itself and will be paid off in about 18 years.

House wish:
- Semi-detached house or end-terrace house (not older than 30 years)
- Terrace, small garden, cellar
- approx. 100 sqm would be enough for us
- Price around 250,000 €

What do you think about it? Should we take the big step right away and buy our own house or better buy a condominium first? Since we are currently renting (680 € warm for 67 sqm), we definitely want something of our own next year. However, we think that buying a condominium would reduce our equity capital again and we would have to wait longer for a house.

Thank you in advance!

At 26, we had pretty much the same income situation. The house wish is understandable but completely unrealistic. I would never have bought even the condominium in my life (with a net income under 2000 EUR). The risk that something goes wrong (defaulting tenants etc.) is just too high. You can completely ignore the income from training and there is no equity capital (even less than zero) available. So what should be done: increase income + save + save + save. Before building a house, turn the condominium into cash... preferably with a profit.

2015-12-23 19:20:14

Addendum: I hope no banker or other criminal has talked you into the apartment. Only in very few cases does a condominium pay off as an investment property with financing. Even with cash payment, hardly any significant return can be achieved anymore. As a rule of thumb, the capital should be back within a maximum of 12-15 years. Consider interest, lost interest, homeowners association fees, inflation!!! and so on and so forth...

Currently on the market in central Germany (according to ImmobilienScout): 25-30 years. That makes me fall off my chair laughing, and I would rather put the money under my pillow... financing the whole thing is completely absurd.

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Is house planning realistic at all?

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