New construction - What is included in our financial budget?

Really annoying sometimes, no one, really no one responds to the initial question. They want to re-educate a consumer again, I never understand that!

Equity is important, improves the interest rate, the repayment, surely also says something about saving and consumption behavior, but first of all never standing alone as background information such as

- why with the net income little equity (was briefly touched on)?
- cars paid in cash?
- loans present?
- possibly just finished studying?
- unexpected costs in the past 2-3 years occurred and settled?

etc.

must be questioned and equity is not necessarily required to obtain a financing commitment. It honors everyone who has saved capital over years and possibly rehearsed the worst case, who does not want to pay the higher interest rate through loan-to-value reduction by using equity, etc. but what does that alone say? That he will always be able to meet his capital service, the property will be paid off without problems, one is immune to something? What do you always want to say, express, without knowing the person behind the thread, their being, their actions, and their attitude towards life, and if that was mentioned (and that is certainly known to many original posters) and known, still aim for more?

Let's not misunderstand each other, equity is of significant advantage, but not a must, and if I do not know the person behind the thread, it is very difficult for me personally to give an evaluation, an assessment! Wavering, babbling, and rambling are not the topic, but do we help with that or do we just feel good because we believe we are better off, is it actually about us or another person, who luckily are not all the same? Generalization and stereotyping does not help anyone, and banks also do not evaluate their inquiries that way, also nothing reliable can be derived from this regarding third-party utilizations and disruptions of capital service, moreover very few consumers can be dissuaded from their plans by this, which can certainly be a goal of us advisers and helpers, but in my opinion it must then be done more thoroughly and above all more individually.

Questions that arise for me for an evaluation here:

1) How high is the current net income? 13 salaries, vacation pay and Christmas bonus?
2) Are there loans present, if yes with which principal and which monthly burden?
3) Since when with the employer? Salary or wages? I read that you are a civil servant?
4) What is the status of assets regarding real estate with the parents?
5) How high is the home savings contract and what is currently saved as credit?
6) With what interest and repayment rate would you want to calculate?

Required for an evaluation

That's right, I had overlooked that the OP only has 23 years left until retirement, of course one wants to be debt-free then.

Pension, accordingly he must be a civil servant?!

Lumpi, a life in debt bondage. People used to be serfs in serfdom, which today is not much different, only the count is not called von Zitzewitz, but Commerzbank or something.

Which debt is meant?

Thank you for the longer text

Regarding your questions.. 1. The net income on the payslip is €4000, both together. As a civil servant (correctional officer), there is only vacation pay which is actually a joke, so not worth mentioning. My wife (nurses in forensic psychiatry) receives a 13th salary. 2. There are no loans. 3. I have been a civil servant since 2006. 4. My parents have a property. It could be that my brother takes it over one day and then will pay me out. But I can’t plan on that 100%. 5. The pension plan has an amount of 30,000. Maybe 8,000 is in it. 6. I think around €800-900.

One must not forget the [baukindergeld] of 24,000. That’s also something that can be immediately used for special repayment.

Otherwise, I can also say that the cars are paid for in cash.

It is clear to me that I won’t get 100% advice here and that much more information would be needed..

Thank you for the information, and it should become apparent that their starting situation is not that bad and only one pillar out of 4 to 5 pillars is somewhat crumbling, which is somewhat remedied by the 8,000 euro building savings credit, which, after splitting the building savings sum, results in a blank loan (externally financed equity) of about 12,000 euro.

Well, consumers sometimes do not even get 100% advice when they go to their house bank.

Basically, however, we can already help you here, let's see. At least I can understand why you are dealing with the topic of acquiring real estate property and can only approve of this.

Regarding the parental property, it would need to be clarified to what extent the parents support the project by providing a substitute security, which results in a reduction of the loan-to-value ratio, allowing better conditions.

Otherwise, it can be summarized as follows:

1) At least 20,000 euros are available as equity, even if partially externally financed
2) no loans
3) civil servant
4) nurse/care service safe job and preferred customers at banks
5) 13th salary
6) child planning probably completed
7) building allowance as security, possibly additional repayment capital available
8) property owned by parents, possibly substitute security, possibly additional repayment capital in the future
9) healthy basic attitude, which shows the desired interest and repayment performance

Even if Thomas pulls out the hammer again, he is not wrong. After all, he does it professionally.

From personal experience and the experience of others, it is also easier to determine an amount. A monthly installment including monthly additional costs of 30-35% of the household net income is healthy, regardless of equity. Of course, assuming that you also have that available and are not already spending 70% purely on consumption.

So you have €4000 x 0.35 = €1400 - €400 additional costs, thus a margin of €1000. Here you can play around with the interest rate fixation, repayment, etc. Try it for 20 years and 2 or 3% repayment. That does not mean the bank will not lend you more; they will gladly do so. Clearly, more is possible than a rate of €1000, but the crucial question is, is it healthy to finance higher?!?