New construction project with this household income

Hello everyone,

I need an assessment from you regarding the following situation:

He, 36, employee in the public sector, full-time, net income €2,400 excluding annual special payment (further salary increases within the scope of step increases and collective bargaining in the coming years).

She, 38, part-time employee (75%), net income €1,375, no annual special payments (salary increases possible but not collectively agreed).

Joint child, 2 years old, €194 child benefit, no further plans.

Total household net income amounts to €3,969.

Equity currently €43,000, monthly increase of about €1,400 on average.

There are no liabilities on either side.

Planned monthly annuity €1,200 with a loan amount of €320k (additional costs amount to about €13,000 and will be paid from equity).

Our income-expense calculation from recent years shows that this should be feasible. However, mentally it’s quite a big number compared to the current €650 warm housing costs.

What do you think?

Are the 43k + 1.4k/month exclusively for the house, or do they also include vacations/saving for a new car/annual insurance? Assuming "only for the house": You are currently spending (virtually + real combined) €2050 on housing (otherwise correspondingly less). According to your financial plan, it would then be 1200 + additional costs + reserves. Your child is also currently at a very expensive age (presumably full-time in the daycare at 75% workload and still growing very quickly); for kindergarten ours was definitely much cheaper. That sounds manageable to me.

Have roughly similar numbers, it's doable, full-time for the woman would, however, be an option I would consider.

The 43 k equity + 1,400 € monthly savings rate are currently available or being saved. That means we pay 650 € rent including additional costs but excluding electricity and save the 1,400 € monthly. Vacations, cars (although we don’t drive expensive cars), and household appliances are paid from that when something breaks.

After building the house, about 1,500 € would come from the 650 € housing costs (interest, repayment, and additional costs) and accordingly the savings rate would be lower.

Still, I first have to get used to that. It’s quite a lot of money “just” for housing when you are used to it differently for years.

Full-time on your part would basically be possible. Currently, however, we prioritize mother-child time more.

You want to buy shares? You are basically exchanging savings rate for credit. It can work, you are good savers

Your equity is only about 13%. Have you ever inquired at a bank? As I have heard/read, you should bring at least 20% equity to comfortably get financing. And the best conditions are apparently obtained when you finance a maximum of 60%. With a 20-year fixed interest period, a 1200 EUR installment, a 320K loan, and an assumed interest rate of 1.8%, you still have an outstanding debt of about 112,000 EUR after 20 years, if I have calculated correctly... For me personally, that would be nothing.