Is it sensible to buy an existing property at the purchase price? Financing?

Hello everyone,

I have already read up a lot myself but haven’t really become any wiser. Maybe you can give me tips or share experiences regarding financing. I know that everything is without guarantee and absolutely non-binding. It’s just that I am very skeptical about banks and financial advisors, so I wanted to ask for help here so that I don’t look completely clueless when I have my first appointment. My husband really isn’t any help with this! We have found a property (2-family house) in Bielefeld 33719. The purchase price is 350,000 euros without a realtor. The property can be moved into directly; it just needs to be wallpapered once and floors laid (my husband will do that). The property has one residential unit (upper floor) with 60m², which we plan to rent out for 450.00 euros cold (to the brother). We wanted to move into the ground floor with 110m².

Now, a bit about us. I am 29 years old and a trained social worker. Currently, I am in a fixed-term employment contract for 20 hours with a monthly net income of 1,300.00 euros. However, I will soon end this and begin family planning with a second child. Then I will take parental leave for 2 years and afterward look for a new job (which shouldn’t be a problem). I own a small business with a monthly profit of 250.00 euros. There is potential to grow it, but unfortunately, I lack time due to my main job. My husband is 33 years old and a trained electrician. He is employed by the city (public service) in a permanent position with a monthly net income of 2,400.00 euros. We are both currently in tax class 4. We currently have a three-year-old daughter and receive child benefit of 200.00 euros (a second child is planned). We have equity amounting to 20,000 euros. Additionally, we have a car loan with a monthly payment of 234.00 euros, which will run for another 3 years.

Now your personal assessment! Do you think it even makes sense under these conditions to purchase a property with this purchase price? If yes, how could one best finance it or what could a financing plan look like, or is it impossible to say exactly? I know I am still very green behind the ears, and maybe my question is completely out of place here. Thank you in advance.

Equity is enough for incidental costs. Otherwise, you will find banks that finance it. They check the condition. But you already know that soon less income will be available due to parental allowance.

Addendum. The property has a plot size of 800m. We have monthly expenses (insurance, groceries, daycare, etc.) of 1200.00 euros.

Yes, we are aware of that; we will then have to scale back for 2 years. I will still receive a small amount of parental allowance ([450.00 Euro over 2 years]) and will then invest more time in the small business.

Could someone show me what such a financing plan could look like?

Do you already know what interest rate you would have?
I have often worked with the repayment calculator from Interhyp. That was quite helpful. However, you already have to have an idea of what interest rate and loan amount you have.

I would invite a freelance financial advisor to you. He will first calculate everything for you free of charge.
Of course, you have to factor in that you need a reserve for maintenance. Because you are aiming for a rental, I would calculate 1.5 euros per sqm for each month. Maintenance, repairs, etc.

I will probably build new. My ancillary cost statement (650 euros) is as follows:
Property tax 80 (estimated)
Building insurance including natural hazard insurance 25
Household insurance 11
Liability insurance 11
Heating 80
Electricity 120
Water and sewage 75
Garbage bin and street cleaning 49
Chimney sweep/heating maintenance 30
Phone/internet 30
TV runs via satellite
Reserves 150 (1 euro per sqm)

Possibly a bit too much, but not by far... Unfortunately...

You will probably only get information here if you tell more about the house, condition, location.
Example questions:
How old is the heating system and what kind is it? Bathroom?
Basement?
Shutters?