Is owning a home feasible for us or too much of a risk?

Let's be honest – who in Germany or Europe still gets full financing or even 130% without equity under the latest Bologna criteria? If the net income approaches five figures, that might work, but otherwise?

Best regards
Dirk Grafe

My husband and I earn roughly the same amount as the OP and his girlfriend (by the way, my husband also works in the metal industry with IG Metall collective agreement wages). We are only slightly older (29 and 27). Our house will cost about €350,000 "all inclusive" (with land, garage, outdoor facilities, etc.). That is certainly possible, but we live in the countryside far from any big city, so you probably can't compare that with prices in Kassel. What also worries me about the OP is the lack of equity or the fact that you haven't saved anything so far. For example, we bring in €90,000 equity in the form of money and additional equity through our own labor. We finance €240,000 and pay about €870 per month. That should also work once the child is here. If necessary, we can reduce the rate during the critical time and then increase it again later. However, the rate is set rather conservatively anyway, and we hope to make extra repayments regularly. But without equity, with a loan amount of about €300,000, and with your income, I also see the situation rather critically. I too would recommend, if necessary, to save up a little first, at least the ancillary costs.

The problem of is not whether he gets money from the bank or not. At least if the parental property is used as collateral with a land charge (mentioned in one of his follow-up posts), the whole issue of the loan-to-value ratio being over 100% would at least be bypassed from the bank’s perspective. But at this point in time, one can only warn against taking this path.

There are fundamental problems underlying this.

The previous equity savings rate has been rather poor so far. Few manage to sustainably change this overnight. The original poster basically needs to work on this. You have already received some helpful advice.

But even if you take the slightly increased "savings rate," which was 265€ above the current cold rent (600 cold, 865€), the amount to be financed is by far insufficient for an average house building project without any equity (in your case the large required loan volume). There is also a big gap there in your case.

And the only help is to engage intensively if you want to realize this wish for your own home. Also look out for alternatives. Semi-detached houses or terraced houses, for example, are usually cheaper than detached single-family homes on greenfield sites.

Another alternative would be the "exchange" with the parents; certainly in some cases an interesting option for both sides.

The problem of is not whether he gets money from the bank or not.

At least if the parental property is burdened as collateral with a land charge (mentioned in one of his subsequent posts), then the whole issue of a loan-to-value ratio of >100% would at least be bypassed from the bank's perspective. But at the present time, one can only warn against taking this path.

My contribution also referred in context to the post of , whose posts we as mods also follow attentively in another topic.

Of course, if you bring an existing property, the issue of equity is settled – which only supports my thesis that since Bologna III (!?) it has become enormously difficult to get financing that exceeds 80%, let alone +100%.

According to current criteria, this only applies to builders with an exceptionally high household income.

Best regards
Dirk Grafe

Hello Oliver,

The ancillary house costs are set relatively high at €500 monthly, but fundamentally Steffen is right: without equity and with the desire to have children, it won’t work.

You are currently spending about €2,500 including rent and utilities, meaning you could save €1,000 monthly, i.e., save about €25,000 in 2 years. That would at least be enough to roughly cover the incidental purchase costs.

Additionally, with children not only does the income decrease, but expenses also increase, so with a current net income of €4,000 you are not poor, but that’s simply not enough for children and a 100% financing. Better to take the detour via a condominium or save a few more years.

Kind regards
Dirk Grafe

I also see quite some potential for savings, partly perhaps just temporarily:

the 2 mobile contracts are presumably with the newest, most expensive phones? Mine in the D-network with all-net flat rate and 4 GB data volume costs less than €20 per month!
Sky is nice, but you probably hardly have time to watch much especially during the house-building phase and afterwards, I would rather estimate the ancillary costs at about €350 given the size.
Also, the available income of €3,000 is not comprehensible to me.
To my knowledge, child-rearing allowance is 60%, so that would already be €1,200.
If I am not mistaken, the other person could then change the tax class and would thus get about €200 - 300 more.
The fact that it would be a 1xx% financing is also unpleasant in my opinion, but I do see a few hundred euros more that you would have available.

I also see quite a bit of potential for savings, partly maybe just temporary:

The 2 mobile phone contracts probably come with the newest, most expensive phone? Mine in the D-network with allnet flat rate and 4 GB data volume costs less than 20.- per month!
Sky is nice, but you probably hardly have time to watch much right now during the house building phase and afterwards, I would also estimate the incidental costs at around 350.- given the size.
Moreover, the 3000.- disposable income is not comprehensible to me.
As far as I know, parental allowance is 60%, so that would already be 1200.-€
If I am not completely wrong, the other person could then change the tax class and thus receive about 200 - 300 € more.
That it would be a 1xx% financing is also, in my opinion, unpleasant, but I do see one or two hundred euros more that you would have available.

Sorry if this sounds a bit harsh now, but whoever wants/should save on their home financing by cutting Sky or mobile phone subscriptions is, in my view, doing something very wrong.

Even if the above-mentioned saving potential arises tax-wise with parental allowance, the few hundred euros per month (and as clearly described in the previous post, if at all, they are rather "saved" annually) will very easily be spent on children's and baby equipment: you need a stroller, car seat, baby food, clothes, changing table, and so on ... so someone still has to convincingly explain to me the thesis that you have more money in your pocket with a child and parental allowance.

Of course, you can also buy everything used, and there are many clothes given away for free, but quite a lot still comes at you and that already starts with some examinations during pregnancy that are not covered by the statutory health insurance. Sure, one can discuss again whether you really need the examinations or whether you can save that money ... but with all due respect ... if you want to spend ~300,000€ on a property and then don't even have 30€ left for a Sky subscription, then something is fundamentally wrong.

Best regards
Dirk Grafe