Is the house wish realistic for us?

Hello,

My wife and I have been thinking about buying a house for a while now, and the idea is becoming more concrete. We are looking at a house this week that costs about 300,000 euros turnkey. The house is being sold without a realtor. It is a semi-detached house in a small town.

Our basic data are:
Salary him: 2200 net
Salary her: 2100 net
Equity capital: 20,000 euros
Rent: 400 cold
Savings rate: 1000 euros p.m.
Both permanent contracts, he in public service.

My wife studied until last year, so we have only been saving properly for a year. Do you think it is realistic that we would get financing for the property?

Yes, why not. But a semi-detached house for 300,000 euros is a bargain, where is the catch? In a small town, I would have expected almost double that amount.

Consider additional expenses such as new furniture, kitchen, lamps, etc. Presumably, you can also upgrade here, a few more sockets never hurt, and maybe you don’t only want the round 60cm mirror in the bathroom...

Including the property and all additional costs? 4300 net for 300k may sound okay now. It will be tight if children are added.

I think details about financing are more important than furnishings. Just make sure that you can pay the additional purchase costs (how much is it?) from your equity. I think/suspect something might still be missing there? I wouldn’t finance over 100%. The “penalty interest rates” are just too bad and they are calculated on the entire amount, not just the part that exceeds 100%. We had almost no equity, only 7,000 euros. With that, we could pay all the additional purchase costs, and then it became a 100% financing, which is not as problematic as often portrayed. For the banks, that is day-to-day business and nothing special. You just have to do the math and maybe not work with 2% repayment. At the first follow-up financing after 5 years, we were already in a much better position with only 80% loan-to-value. I find the price rather expensive, but prices have risen so extremely that nothing surprises you anymore...

The 300,000 include the plot and are fully developed. Furniture and lamps from the current apartment are already available and will be taken over for the beginning.