Is it possible to purchase/build a house for a household of 6 people?

Hello
We are a family of 6, meaning 2 adults and 4 children (11, 10, 7 and 5 years old)
Lately we have been thinking about buying or building a house ...
but since we are totally inexperienced, I wanted to ask here in the forum about your experiences and whether you would even consider something like that in our current situation and whether financing from the bank would be possible
so now a few facts
my husband is 39 years old, is an employee, works as a roofer with good job prospects, with a net income of about 1900 to 2100 euros, plus child benefits of 779 euros and 309 euros in alimony for my 11-year-old daughter.
I only earn seasonally, I am a waitress and am on a 400 euro contract during the summer months.
we currently live in a single-family house for rent, the rent costs are 490 euros cold monthly plus 70 euros additional costs (garbage, water...) well, electricity and heating are about 270 euros, a loan agreement with Neckermann with 56 euros monthly (about 700 euros still outstanding), the remaining expenses like phone and insurance are about 290 euros
so together about 1200 euros in expenses monthly

we have no equity
would financing be possible under these conditions? if yes, how much approximately?

who can help, who knows about this?
thank you very much in advance for your efforts =)

frenchlady

Hello,

how does it look with the costs for food and drinks?
What about the new/old car?
What if the children are older?
What can you actually save?
Why no equity?
Keep in mind, when your husband is 40, how long he can still work, and how long a loan runs...

How high should the loan be?

With no equity, it’s not so appealing..., especially since the rent is not that exorbitantly high.

hello, thanks for your interest =)
so regarding your questions costs for food, drinks, fuel etc are about 150 per week sometimes more sometimes less
we have 2 cars that are still in pretty good condition mine is now a bit older but my husband’s is not that old yet both are fully paid off (we saved for them together)
what do you mean when the kids are older? that it costs more? that’s probably right ... but the bigger the little ones get the more I can work .... or how do you mean the question?
what we can put aside so start saving... I think 100 euros are realistic at least in the winter months in the summer surely a bit more ..
well good question why no equity.. unfortunately too late to think about it maybe buying a house is not so bad I was always a bit afraid of it always had in mind what if... (my husband falls off the roof bla bla... what happens then) but my husband took some of that fear away and he would like to have 4 own walls as a little retirement security
yes he is almost 40 years old and I hope he will be at least as fit for the next 20 years and continue working actually he still has to work 27 years .....
how high the loan should be... I think around 100000 to 105000 including all additional costs etc ....
the rent is not too high that’s true, but it is usual for this area for a 140 sqm house where we are currently living.
so I hope I have answered everything
best regards frenchlady

Hello Frenchlady,

by children growing up I mean school supplies, pocket money, clothes, food, going out ... everything will increase.

I am also in a similar situation, 39 years old, but with equity. Since my son was born, I have been looking for plots, houses that are affordable.
My thought is that if I buy a house, I need high renovation costs and TIME. So if I can build, I can influence the layout and build energy-efficiently.
My problem is the plot, or rather the location, because in our area you can’t find anything nice...

We were at the bank on Monday, it is a very simple calculation.
All net incomes - fixed expenses like insurance - flat rate (for 2 adults with child 1250€ per month) - reserve (for incidental costs, clothes, as a buffer) = sum X

With sum X, at 4% interest and 1% repayment, you can finance amount Y. For us that was X*233 in euros. Usually X*200 should be possible assuming creditworthiness.
BUT if there is no equity, the interest rate will be higher.

Now you add the equity to Y, so you have the TOTAL amount you can raise.
But keep in mind that without special repayments you pay off over 30 years at 1% repayment!!!!! And that every month, summer and winter.

Now comes the house calculation:

> Property purchase depending on price per sqm + 3.5% property transfer tax (Bavaria), 1.5% notary fees

> Basement 20,000-50,000 € depending on execution (utility basement, living basement, expandable basement)

> House connection costs 12,000 (depending on municipality, electricity, telephone, water, gas)

> Construction electricity and water 1,000

> possibly deeper foundation 6,000

> Official expenses 3,000

> House costs depending on size (6 people), layout and wishes approx. 1000 to 1500€ minimum per cubic meter

> Carport/Garage?

> Garden design (cistern, paving stones, fence ...)?

> new kitchen

> moving costs

> possibly fireplace, heating, better bathroom fittings ... special requests

> + X for unforeseen costs

==> Thus building a house is very expensive!

When buying a house the costs are:

> Property transfer tax + notary approx. 5-6% of purchase price
> Moving costs
> Kitchen?
> Renovation (insulation, new electrical wiring, water pipe break)

- high heating costs if house is old

So here is a small example calculation with 500€ cold rent and 100€ reserves => 600€ over 10 years at 4.18% effective for 100% of 100,000€ results in a repayment of 3.1% and after 10 years a remaining debt of 61,759.22

But do not calculate too tight, include a buffer, because the loan is deducted every month, even if the car breaks down!

Hope to have helped a little.

JP

PS: All without guarantee!

So even if the bank includes your child benefits and maintenance payments, you have around €500 left for a loan after deducting their living cost rate and additional housing costs, etc., with which you can probably borrow just under €100,000 without equity, what you get for that with you, I don't know!

Hello Frenchlady!

Under the mentioned conditions, I would neither think about buying a house nor building one! For a family of six, given the information about the employment situations and income, you can forget such an idea. This is not meant to be offensive. But you have no secure jobs, no equity, 4 children, etc.

What if your husband suddenly becomes unemployed or ill or the maintenance for the first child suddenly stops, etc.?

We ourselves already have two children (want more) and pay a monthly rate of 1,400 euros on a net monthly income of 4,500 euros. More would absolutely not be possible (also according to the banks' information). That would be a rough comparison. I also don’t believe you will find a bank that would finance such a project.

If you also consider the current rent and the fact that you could only save 100 euros, that is far too little to build or pay off a house. So before you throw yourself into misfortune, I would rather, if at all possible and necessary, rent a bigger house or a very large apartment.

Hope I could help you.

Best regards