Is the dream of owning a home coming true?

I know that probably many of these questions already exist, but it is usually very individual, so I would like to turn to you.

My "partner" and I (we are not married) are 25 years old and want to build a house. In case the information is important: we live in Hessen. Preferably, we want to start in 2-3 years. Until then, we have about 36,000€ in equity. My partner earns 2,100€ net, I earn 2,000€ net.

We think that building the house will cost us about 300,000 to 350,000€, since we need new furnishings + kitchen. We would be willing to contribute during the construction.

The problem is that I would like to have a child in the next 3-4 years. Because of that, one salary would be missing for about 3 years. How long we pay off is actually secondary at first, but it should not be more than 25 years :rolleyes:

Do you think we would manage to finance the house with one salary? Is it even possible for an unmarried couple to get such a high loan?

Thanks in advance :)

So the net income is already good: BUT be careful with the total costs, and be cautious about loss of earnings. If your salary completely disappears from the second year of parental leave, it will be difficult, if not impossible, to repay the loan. Because as I see it, you need a minimum of €300,000 as a loan. You will probably repay this with €1200 - €1500. In addition, there are ancillary housing costs of about €200-300. And you can already see that nothing will be left of your husband’s salary, because you still have to live, pay for gas to work, clothes for the job and so on. You must not count the child benefit, it will be used 100% for the child and will not be enough.

We are currently in a very similar situation. We are expecting our first child in the next 6 weeks and have a €250,000 loan hanging over our heads. I can manage this loan alone well with a rate of €1000 with my salary. But if you don’t want to pay for 40 years, it is almost inevitable that my wife will go back to work part-time after one year off. How that will shape up remains to be seen, whether there are positions for PhD computer scientists in part-time...

How do you come up with the €350,000? How do they add up? I would almost keep your equity out of the loan, because €30,000 in unexpected costs can easily occur. It is more relaxing if you have something in reserve. Negotiate with the bank that you can return 10% of the loan free of charge at the end. In the best case, you then use your equity. Unfortunately, we did it wrong and are now struggling with additional financing, and that with €150,000 equity and a better net income than you. Crazy world.

No matter what you do, try to manage the financing with only one salary, in such a way that there is still something left to live on. If you eventually earn extra again -> special repayments until the doctor comes, buying furniture, new car, family vacation....

Addendum: with 4100 net per month, it should be easy to set aside 2000 € per month. That would be a solid 50,000 € in equity in 2 years.

I also forgot something. You only have the €4300/month mathematically if you go back to working full-time. But that probably won’t be the case.

In the first year of parental allowance, it almost works out because the husband's tax class changes. But be careful again. Parental allowance is tax-free BUT subject to the progression clause, which means in the end the state claws back nearly 2 parts of the parental allowance as a tax refund.... mean nasty world. :)

My contribution was also written somewhat pessimistically, so with 4000 net this should be possible, but it must be well planned.

Hello,

Unfortunately, you are "putting the cart before the horse." Apart from the fact that there is a ton of information here about the various financing options, you should first go to your bank – or better yet, an independent financing broker – and clarify your budget there! Only then will you know what you can afford under which conditions and can comfortably decide what you want to afford! Questions like the ones below, in my opinion, should only be asked here in the forum once you at least roughly know your boundary conditions.

We think that building the house will cost us around €300,000 to €350,000, since we need new furnishings + kitchen. We would be willing to help with the construction.

Assuming the plot would cost you TEUR 100, that leaves TEUR 250 for house construction and additional costs. For TEUR 200, you can get – even in Hesse – a good 130 sqm of pure living space – only the remaining, then "mathematically" leftover TEUR 50 will by no means go into a new kitchen, but flow – if things get really tight – into the pure ancillary building costs. You can safely forget about the new furnishings for now ;)

Do you think we would manage to finance the house with one income? Can you even get such a high loan as an unmarried couple?

That’s exactly why you should go to a financer – whether it could work for you under which conditions cannot be answered in a forum like this, because – and here you are right – your and every financing is individual, since personal life circumstances are very different.

The only thing that can be said with some certainty is that you should reconsider your desire to have children. And specifically so that children should already be planned now – so that you then, when it becomes urgently necessary (when the financing must be repaid) – do not have to accept excessive restrictions due to the loss of your salary. I myself have 2 children – now grown up – and they have cost quite a bit of money ... even today, because my adult daughter decided to continue studying alongside her job.

Best regards