Is single earner construction financing possible? Is equity available?

According to the Sparkasse's online calculator, the following results come out with these inputs:



2 adults, 2 children

1 salary 3,100 net

Child benefit 450 euros (no idea how much that is)

Warm rent including additional costs 1,100 euros

Cost of living: flat rate value from Sparkasse

Car: flat rate value for 1 car



Your monthly disposable income: 50 euros



The following results come out:



Maximum financing amount



13,333.33€



– safety buffer for unforeseen expenses (5.00%)



18,166.67€



– notary and land registry entry (1.50%)



4,563.68€



– property transfer tax (6.00%)



18,254.74€



– broker costs



5.95



%







18,102.61



€



– modernization costs







+ equity capital



350,000.00



This is how much your property may cost



304,245.63€

The only mistake in the calculation is that the previous rent falls away. You will probably have to remove it.

I basically think that we cannot say here whether it will work. Everyone is different and only knows best for themselves with which amount they manage monthly.
And in the end, the banks decide anyway.
I would find it tight, because for me it always applies that I don’t want to live only for the house. But if that is the highest priority for someone, and one lives frugally for a few years until the wife wants to work again, it can certainly be done.

I always find it funny how the costs of growing children are ignored. Is it even planned that the woman will work again?

I always find it funny how the costs of growing children are ignored. Is it even planned that the woman will work again?

At ages 2 and 4, it is simply not that present yet. And ultimately, it makes sense. The starting values today and in the next 10 years count first and foremost.

The "income reserve" woman is indeed a point. You can only afford and want one income. It will be tight in my opinion, because a second income could be added if necessary and there is a lot of equity involved.

Thank you first of all for the numerous responses.

Indeed, it is also planned that my wife will resume work (part-time) from 2022.

I did not expect, based on your opinions, that financing could become tight. I assumed to pay off until the age of 65. I am currently 31 years old. It should be doable with a rate of about 1100-1200€. After all, we are bringing 300,000€ in equity. This would put us at a loan-to-value ratio below 65%.

If my wife starts working again, special payments of about 3000-5000€ p.A. are planned annually.

Works easily with the equity. At your age, start with about 2% repayment (40 years term) and agree on a repayment change. That costs €300,000 only €800 monthly.

"In your age"? Did I overlook how old the OP and his wife are?

I don't necessarily find that "easy" without having further information.

This is again a typical forum prejudice here.
A lot of gifted equity is involved, and suddenly a healthy attitude towards money is assumed by some here.

I believe finding a property for a 4-person family in Frankfurt and surroundings for 600k will already be difficult. (Including necessary renovation work)
With every additional 50k that the whole project becomes more expensive, the financing tightens.

If the OP ends up with a monthly burden of 1500 including incidental costs, I don't find that so easy for him and the family anymore.
2000 for living expenses has to be calculated personally.
Depending on the property, sooner or later costs will arise that you simply don't have to plan for as a tenant.

Without the woman’s employment, I would never do the income thing in Frankfurt. Depending on the bank, your household flat rate will be around 2 - 2.5k Euros. Thus, you will have about 1k available for financing. That would be about 250k loan amount. You will have to see if, together with your equity, you can find something for 600k around Frankfurt. But please no old property where the next maintenance is due soon. Because without the woman’s income, you cannot save a significant amount of money for that.