jwiejulietta
2020-06-13 14:11:09
- #1
Hello,
my wife (30) and I (34) are entering the single-family house market this year in the Würzburg area.
I work as a developer in the public sector and currently earn €3,200 net; my wife is also in the public sector and brings home €2,200. Since we are expecting a child and planning number 2, and my wife will mostly take care of the children herself, we expect a secure Hamburg net equity of €4,200 for the future, with a slight upward trend. In 15 years, my wife will work almost full-time again.
We are bringing €128,000 equity (60,000 of our savings + the rest from our parents). We expect to inherit €80,000 within the next few years, which we want to keep as an "emergency reserve" for the property. As additional security, we could mortgage my parents' house.
We would repay with an initial installment of €1,000.
We would like to purchase a single-family house/duplex/semi-detached house, ideally a existing property built from 2010. Our target price is €400k. Unfortunately, Würzburg is in demand, so we are preparing for €500,000, i.e., including ancillary costs €550,000. New constructions (shell houses with fittings) also cost at least €450k, more likely more.
Now for the question:
Is it realistic that we can manage the financing based on the above data and pay off the house within the next 30-35 years?
The banks have already given their approval and quoted interest rates of 1.3 - 1.5% for 25 years.
Due to our employment in the public sector plus the existing property of our parents, we are also considered "safe" customers. However, we have the impression that the bank is currently happy to lend the money and does not consider whether we will permanently be able to afford the financing.
Therefore, we would like an honest assessment from the experts (and experienced laypeople) here on whether our project is feasible or if we are overextending ourselves and being dazzled by the currently low interest rates. Or whether buying a small condominium as an investment property makes more sense in our situation and we should rent a large apartment with the children.
my wife (30) and I (34) are entering the single-family house market this year in the Würzburg area.
I work as a developer in the public sector and currently earn €3,200 net; my wife is also in the public sector and brings home €2,200. Since we are expecting a child and planning number 2, and my wife will mostly take care of the children herself, we expect a secure Hamburg net equity of €4,200 for the future, with a slight upward trend. In 15 years, my wife will work almost full-time again.
We are bringing €128,000 equity (60,000 of our savings + the rest from our parents). We expect to inherit €80,000 within the next few years, which we want to keep as an "emergency reserve" for the property. As additional security, we could mortgage my parents' house.
We would repay with an initial installment of €1,000.
We would like to purchase a single-family house/duplex/semi-detached house, ideally a existing property built from 2010. Our target price is €400k. Unfortunately, Würzburg is in demand, so we are preparing for €500,000, i.e., including ancillary costs €550,000. New constructions (shell houses with fittings) also cost at least €450k, more likely more.
Now for the question:
Is it realistic that we can manage the financing based on the above data and pay off the house within the next 30-35 years?
The banks have already given their approval and quoted interest rates of 1.3 - 1.5% for 25 years.
Due to our employment in the public sector plus the existing property of our parents, we are also considered "safe" customers. However, we have the impression that the bank is currently happy to lend the money and does not consider whether we will permanently be able to afford the financing.
Therefore, we would like an honest assessment from the experts (and experienced laypeople) here on whether our project is feasible or if we are overextending ourselves and being dazzled by the currently low interest rates. Or whether buying a small condominium as an investment property makes more sense in our situation and we should rent a large apartment with the children.