Is the dream of a home realistic with our financing?

Hello everyone,

my wife (47) and I (54) are dreaming of owning a home!
That should be allowed and is also fun
185,000 need to be financed, 20,000 equity available.
I earn €2,000 net, my wife €850.
In addition, there are monthly pension payments of €400.00 for the next 10 years.
(so €48,000)
In 2026 we will receive €40,000 from a [LV], which we want to use entirely as a special repayment. Currently, we pay cold rent of €450.00.
We can afford a monthly installment of at least €800.
With the repayment calculator from Accedo, considering an installment amount of €850 and the special repayment of €40,000, I come to a duration of about 17 years.
What is your opinion, is owning a home feasible?

Thank you in advance for your opinions

First of all, the question arises: 205k for a home, is that reasonable? If it is a used property, has it been checked by experts to ensure there are no hidden costs? I see a big risk with tight financing (also in terms of the duration) that even minor additional costs or difficulties/financial extra needs can end in a major fiasco (no house, but still in debt).

Quick update: we actually revoked the contract and agreed with the bank on a new offer.

We have scratched the 30-year loan thing because the costs would simply be way too high.

The flexibility we wanted we have now secured as follows:

€50,000 KfW loan
€80,000 over 20 years at 1.78% and the rest also over 20 years at 1.78%.

This way we can relax and put as much as possible into paying off the smaller loans and thus reduce our monthly burden after repayment within a foreseeable time. In addition, by revoking the contract, we also saved several thousand euros in interest over 20 years.

It was quite a close call but it was worth it ))

Thanks for the opinions here.

A quick update: we actually revoked the contract and agreed on a new offer with the bank.

We have put the 30-year loan matter to rest, as the costs would have simply been way too high.

We have now obtained the flexibility we wanted as follows:

€50,000 KfW loan
€80,000 over 20 years at 1.78% and the rest also over 20 years at 1.78%.

This way, we can comfortably put as much as possible into repaying the smaller loans and thus reduce our monthly burden after the payoff in the foreseeable future. In addition, by revoking, we saved several thousand euros in interest over 20 years.

It was certainly a ride on the razor’s edge, but it was worth it ))

Thanks for the opinions here.

And what does this have to do with the question from the OP?

Hello,

first of all, we naturally asked ourselves which amount would be financed by a bank. On ImmobilienScout, we then looked at what is even offered for around 170,000 €.
A Vista terraced house, for example, would be interesting for us, it's all inclusive, that is land, development costs, and so on. But a used property would also not be uninteresting. However, it would have to fit financially
(Max. 160000 inkl. Reno- Kosten)
As I said, we first want to check everything

not a good idea for several reasons. You basically have no equity..meaning it’s about >100% financing. In addition, there is the low income. I also consider a new build for 205k EUR unrealistic. With a rate of 800 EUR, the house will probably cost you 1000-1100 EUR per month. Is the rest really enough for you to live on? What about vacations, etc.?