Own property right from the start? A beginner needs straight talk...

Hello everyone,

I am new to this forum and first of all want to say a lovely HELLO to everyone.

I also have a fundamental question right away: Does my dream of owning my own property belong at the very beginning? I feel like I haven't really accepted the price reality yet and am still stuck in the 80s/90s...

But what is it actually about? Well, for years I have considered buying a property financially unwise. So I still rent. However, I want to improve my quality of living and have therefore been looking for a new apartment for a long time (I live in Braunschweig). And what can I say: I am absolutely shocked by the rental prices in this region. What my wife and I would like doesn't come in below €1200 cold rent with an upward trend...
So I thought about it (like everyone these days) to consider buying.
Of course, the question arose, what one can afford and wants? And there too, I think I have rose-colored glasses on!!!
About me: male, married, children soon planned
Net income about €5200-5400 (depending on number of shifts) with a 60-70 hour workweek
(in the next few years the salary will still increase due to work experience/
step increases), no bonuses or anything like that, no Christmas bonus etc.

My monthly fixed costs amount to about €3800
This includes a monthly savings rate of €1400
Current rent costs warm including electricity amount to €830
Monthly living costs such as groceries etc. are still missing.

My equity capital currently amounts to about €80,000, but this is tied up and
not freely available at the moment, so I’d say: equity capital = €0 oops:

When I look at the property prices in our region (Braunschweig), I would have to plan for around €350,000-450,000 for an average home. And I always ask myself: who can actually afford all that immediately?? I know that I am lucky to be among the high earners. And when you watch on radio/film and television in what kind of houses some people live (who earn significantly less than me), I am amazed. How do they do it: top house, top car, good clothes etc...
To make it clear right away: this is not envy, I wish it for everyone. My question is always: why can’t I afford that too, where am I miscalculating, where is my mental block? Apart from a car loan, I have no debts, don’t live extravagantly...

So, who can from you old hands wash my head or take off my rose-colored glasses?

Best regards,
Titus72

Hello, what are you doing with the remaining money from 5300-3800=1500? They somehow disappear in your calculation. And since the savings rate is not 2900 (5300-2400) but 1400, can one assume that you are "spending" the 1500?
Does your wife work?

And regarding your question: YES, building is incredibly expensive, buying tends to be somewhat cheaper, but usually comes with compromises.
Even with 0 equity, you can afford to build a house. The 80,000 will probably be free at some point and can possibly serve you later for large special repayments/refinancing of remaining loans, etc.

By the way, I strolled through a new housing estate today and sometimes you really are amazed "like blocks" at the houses and cars in front of them.

my monthly fixed costs amount to approximately €3800 included in this is a monthly savings rate of €1400 current rental costs warm with electricity amount to €830 missing are the monthly living costs such as groceries etc. my equity currently amounts to approximately €80000 however this is tied up and currently not freely available therefore I would say: equity = €0 ops:

I don't understand.... are rent, food, etc. not included in this €3.8k fixed expenses. For me you have €80k equity, why is this not available? Basically you have an advantage, very high income. What surprises me is the relatively small savings rate. You should have zero time to spend the money. Ownership also often means restraint. Smaller car, no more 3 vacations.

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Hello

1. Many people are currently "living beyond" their means because of the low interest rates. The rude awakening comes as soon as interest rates rise, and that will happen at some point.. You don't have to go along with this nonsense.

2. You have a pretty good standard of living, at least based on your expenses. Keyword: compromises.

3. You are selling yourself short.. Your net income is not top earnings but already quite high and a good bit above average. If your wife also works, a family net income of 7000+ should be possible. Especially as a doctor (secure job) you can currently finance quite large amounts without financial pain. A 500,000..600,000 loan should be feasible.

Regards, Steffen

5k net? But wow, that is really good money. I'm at 3.2k and already consider myself to be earning very well. If I manage to cover loans and fixed costs with my salary, then you can definitely manage that with your salary. I never really understand what everyone is worried about regarding potentially rising interest rates later. Do you think most people have loans without fixed interest rates? For us, the interest rates are fixed until the end of the loan (26 years).

5k net? Wow, that’s really good money. I’m at 3.2k and already consider myself to be earning very well. If I manage to cover loan and fixed costs with my salary, then you can definitely do that with yours. I never understand what everyone here has against possibly rising interest rates later. Do you think most people have loans without fixed interest rates? Our interest rates are fixed until the end of the loan (26 years).

Neither earning 3.2k is very good nor is a fixed term of 26 years reasonable