Is the purchase of an existing property financable?

Hello dear forum experts,

we would like to buy a property for our own use. We have been thinking about acquiring property for a long time but have never really started the actual realization because we had our child more than a year ago. Now, by chance, we have found a property that we like very much. Therefore, we would like to know how you assess our situation and whether financing as we have planned is possible. If something is missing in the information, I will simply add it upon request.

General information about you:

[*]Who are you / age? 37 and 37 married
[*]Are there children? 1 child (1 year)
[*]Are children planned? No
[*]What do you do professionally? Career soldier + permanent employed doctor
[*]How many hours do you work? Man 100%, woman currently 30%, April 2026 50%

Income and asset situation:

[*]What income do you have (net)? Currently 7,400 € from April 2026 and 50% part-time: 8,700 € with tax class 4/4
[*]How much child benefit do you receive? 255 €
[*]Other transfer payments such as parental allowance, sick pay, etc.? None
[*]How much equity do you have? 185,000 €
[*]How much equity do you want to invest in the house project? 150,000 €

Expenditure situation:

Housing costs:

[*]Current warm rent: 1,500 € (cold rent: 1,150 €)
[*]Electricity: 70 €
[*]Parking space 75 €
[*]Gas, water, sewage, garbage fees, street cleaning: included in warm rent
[*]Phone, internet, mobile, streaming, etc.: 200 € for the entire household
[*]Total: 1,845 €

Mobility costs:

[*]Two cars (ownership), all further figures for both cars
[*]Insurance: 135 €
[*]Taxes: 15 €
[*]Fuel: 75 €
[*]Total: 225 €

Insurance costs:

[*]Private health insurance (waiting period, partial PKV costs): 125 €
[*]Liability, household contents, legal protection, accident: 115 €
[*]Disability insurance: 200 €
[*]Total: 440 €

Living expenses:

[*]Groceries, restaurants, etc.: 700 €
[*]Care/drugstore: 200 €
[*]Daycare/school fees (and lunch money): 250 €
[*]Total: 1,150 €

Savings:

[*]Vacation: 200 €
[*]House: 1,500 €
[*]Retirement provision: 550 €
[*]Total: 2,250 €

Total income and expenses:

[*]Total income: 7,655 € / April 2026: 8,955 €
[*]Total expenses: 5,910 €
[*]Balance: +1,490 € / 2,790 €
[*]Maximum repayment rate 2,850 €

The money left over each month is simply parked in a sub-account

General information about the property:

[*]Existing house about 10 years old, I do not want to go into further details at this point, cost 700,000 €

Construction or purchase costs:

[*]Incidental purchase costs: 85,000 €

Cost breakdown:

[*]Total costs: 785,000 €
[*]Deductible equity (planned invested equity): 150,000 €
[*]Financing amount: 635,000 €

The intention is to further increase the type of loan with rising income and to make at least 3,000 € special repayments per year.

LOL - with that income, asking about affordability already seems strange. You start with a minimum installment of 2,500-3,000€ monthly. So you have 4-5,000€ left for the living expenses of a small family per month. If that doesn't work, then nobody should build/buy anymore...

Is the concern with you about large debts?

LOL - asking about affordability with that income already seems strange. You start with a minimum installment of 2,500-3,000€ per month. So you have 4-5,000€ left for the living expenses of a small family per month. If that doesn't work, then no one should build/buy anymore... Is your concern about large debts?

Yes, it goes exactly in this direction, so far it is absolutely comfortable to live with a six-figure sum in the portfolio, without any liabilities. You don't make financial decisions every day involving an amount of 750,000 € and more. Furthermore, this is the first property that really interests us and that we are viewing.

Yes, that's exactly the direction it's going, so far it is absolutely comfortable to live with a six-figure sum in the depot, without any liabilities.

And in the future, nothing actually changes with regard to the assets. You have a house worth 700k as an asset and 635k debts against it. Balance: assets 65k, which increases every month through progressive repayment.

Financial decisions involving an amount of €750,000 and more are not made every day.

The amount does not matter. You also made the decision to currently rent for €1,150 cold. That is a million-euro decision – if you pay this rent for the next 40 years with a 3% annual rent increase. Sounds crazy too. Your new "rent" = interest from the financing is much less, the repayment even increases your assets (unlike rent, which is completely gone, even if it includes some maintenance of the property). Maybe this helps you in your consideration. The question "Can I afford this?" does not need much discussion with you, as the income is above average.

is right about that. And the income is very, very above average, so the question itself is unnecessary.

Moreover, this is the first property that really interests us and that we are viewing.

However, one should also calculate the investments for existing properties. Even if 10 years is not old, you still want to have the painter come by or change something. But I would also like to point out again that paid-off cars will eventually need to be replaced, so there is no savings rate for that, just as a note.

Phew... with the salary probably a higher officer and then so insecure already with really quite risk-free decisions to buy a house for 750,000 EUR with 9,000 net income... Of course that's possible. Who else is supposed to buy houses?

Regarding rent... first of all, 1,100 EUR/month over 40 years is not a million. Secondly, you can change a rental apartment much(!) easier than selling a house, especially if you have to sell. Also, certain risks affect the tenant much less than the homeowner. Heating broken? Call the landlord, no problem. Storm damage on the roof? Landlord's responsibility. Water damage from pipe break or flooding... if necessary you just cancel and find a new rental apartment. What does the homeowner do? ;)

I see my house as a luxury that I afford because I can. This is not provision for old age or anything like that. Renting would definitely have been the cheaper way here.