Mortgage installment - your opinion?

Hello,

we are currently about to talk to banks about our house project and its financing, and ultimately to conclude a suitable home loan for us. I have kept a household budget for us (He 35, She 29, Child 2) over 1 year and recorded everything there. Our monthly expenses average 1,930 EUR/month without rent but with everything else (completely all account transactions etc. are included). Our income is (He 2,800 EUR, She 600 EUR due to part-time work, Child 200 EUR child benefit = TOTAL 3,600 EUR/month). This results in about 1,670 EUR/month free.

I have estimated a maximum loan installment of 1,200 EUR for us. I do not want to go above this, and below it the repayment would take too long... With additional operating costs of about 320 EUR (2 EUR/sqm), on average 150 EUR remain to save (3,600 EUR - 320 EUR - 1,200 EUR - 1,930 EUR = 150 EUR). Additionally, we can optimize expenses a bit (combine insurances and possibly discontinue some, as some are overinsured, but that is another topic). Mrs. can also earn somewhat more again in a manageable time (about 800 EUR/month) to cover e.g. the daycare fees.

Our current financing need is just under 335,000 EUR. Total investment approx. 470,000 EUR (house: 290,000 EUR fixed price from GU). Of this, the land 68,000 EUR has already been paid and currently >70,000 EUR equity remains.

We currently live in a rented terraced house (780 EUR rent/month) and will bring almost a complete household with us.

What do you think about this setup or the installment? Is there anyone who has a similar installment with similar equity?

Well, that would be too tight for me but you seem to be good savers

Our monthly expenses average 1,930 EUR/month without rent but including everything else (completely all account movements etc. are included). Our income is (He 2,800 EUR, She 600 EUR due to part-time, Child 200 EUR child benefit = TOTAL 3,600 EUR/month). This results in about 1,670 EUR/month free.

1,930€ are 2,000€ expenses. 3,400€ income (without child benefit) Remaining: 1,400€ 400€ additional housing costs. Remaining are 1,000€. I wouldn't calculate it differently. Sorry. But it's up to you how you handle 1,000€.

House: 290,000 EUR fixed price from GU).

Are the ancillary construction costs already included??? I don't think so. Unfortunately, there is no fixed price from the GU for the ancillary construction costs, as they have to be done by the client. And what about the floor coverings? I mean: fixed price does not mean move-in ready, but a fixed price unchanged for up to x months.

We have the same income (currently €2950 and €350, 2 children) and a payment of €1052 and I tell you, that is quite tight in the long run. I wouldn’t want that in the long run (I have about €1500 net at the latest from November). But we only financed €239,000. What your wife will soon earn more is hardly more than she currently earns. You have equity and a paid-off plot of land, which is of course good. I can’t say what I would borrow in this situation, but in my opinion, you shouldn’t set the payment higher than €1100 if you want to go on vacation sometimes. We had to cancel our annual vacation (the only vacation that was planned at all) because no money – it’s no fun. In addition, we now have to pay back the Bafög, then the garbage collection fee was increased, the daycare fee was increased, street cleaning was increased, and I don’t even want to know what will happen with the property tax (city location). Suddenly, my husband’s nearly €250 per month salary increase is almost completely eaten up again. That happens faster than you can blink. What you do with this information is up to you. But I wouldn’t finance such an amount with the money, I wouldn’t be able to sleep peacefully anymore.

1930€ are 2000€ expenses. 3400€ income (without child benefit) Remaining: 1400€ 400€ additional housing costs. Remaining are 1000€. I wouldn’t calculate differently. Sorry. But it’s up to you how and what you do with 1000€.



Are the construction incidental costs already included??? I don’t think so. Unfortunately, there is no fixed price from the general contractor for the construction incidental costs, as they have to be done on-site. And what about the floor coverings? I mean: fixed price does not mean move-in ready, but a fixed price unchanged up to x months.

The incidental costs are listed separately:

[*]66,000 EUR (construction incidental costs) [*]22,000 EUR incidental house costs) [*]22,000 EUR (incidental costs outdoor facilities)

and are included in my total investment of 471,000 EUR. I have also calculated rather conservatively and own work is also included.

Thank you for your honest breakdown