Possible funding amount / limit

Hello,

I have been an active reader in the forum for some time, but I still have the question:

What can we afford?

Situation:
Married. He, 30, has a PhD, permanently employed in Bavaria. She is on parental leave. Two children, family planning completed.

Monthly available:
3120 income
380 child benefit
300 parental allowance (calculation varies depending on the bank).

Equity:
22000

Debts:
7800 EUR (BAföG; 105 EUR monthly burden)

Current rent payment (warm):
1020

Saving has been possible in recent months of 1000 EUR / month (despite the birth of our son). Quality of life normal. Tried once 1500, that was too much.

A raise and promotion are coming next month.

We want to pay 1700 EUR per month. And, if it works out, make an annual special payment of 3600 EUR, so that on average 2000 EUR / month is paid in.

We expect to be able to make a one-time payment of 30,000 EUR within the next 20 years. However, this should not be factored in.

My wife wants to work again finally, but that will only be possible in two years. Depending on the burden, 450 to 1200 EUR are possible here. But we do not want to use this money for financing, rather for future costs/expenses. So this should also not be factored in.

1) A 100% (about 107%) financing would be possible. Would we have a chance for this? We want a fixed interest rate for 20 years. Alternatively, 15 years fixed interest rate with about 1500-1650 EUR monthly payment.

2) Our limit is probably max. 415,000 EUR (internet calculator). Our wish is 470,000 EUR (without incidental costs). Necessary incidental costs could be taken through a consumer loan (or similar).

Would you say the risk is too high or not possible at all?

I will talk to banks this week.

Thank you very much already... the rose-colored glasses lie next to me (I think )

Hello,
If mom goes back to work and possibly brings home 450€: where are the children then? Are there no childcare costs?

In two years you will have rounded up to at least 3800 with 2 salaries... for a household of 4 I find your budget of over 400000 to be overestimated. With a salary of over 4500, however, it looks better.
I would first pay off BAföG, keep a household book for every euro, and wait to see what job prospects open up for the woman in 2 years and what follow-up costs (Hearing, daycare, and travel costs) to expect.

Regards

Equity:
22000

Debts:
7800 EUR (BAföG;

Why do you then pay off the BAföG in installments instead of completely repaying the remaining debt?

Because that makes sense - [BAföG] is interest-free. I also see 1700 € as rather borderline - 400K € might have been possible with that.

Equity:
22000

Debts:
7800 EUR (BAföG; 105 EUR monthly burden)

Current rent payment (warm):
1020

Saving 1000 EUR/month possible in recent months (despite the birth of our son). Quality of life normal. Tried once 1500, was too much.

We want to pay 1700 EUR per month. And, if it works out, make an annual special payment of 3600 EUR, so that on average 2000 EUR/month is paid.

Hello,

there are several contradictions. You have 15k equity (equity - BAföG).

It is nice that you want to pay 1700 €, but according to you you actually cannot. Where should it come from?

Rent warm 1020 + saving 100 = 2,020. From this you can service the installment, the other operating costs would be the rest. Where should the special repayment come from then? From what do you build reserves? If the car breaks down, something happens to the house etc.

470k is way too much with the income, especially since your wife’s income is almost eaten up by childcare costs. Probably the high (normal) costs are due to the location Ingolstadt / Bavaria.

Why do you pay off the BAföG in installments instead of paying off the remaining debt completely?

We asked ourselves the same question back then, whether to repay BAföG immediately and get a discount or rather pay it off in installments and improve the equity ratio. Especially with so little equity, it can definitely be better. I find a 1700€ rate with a total income of 3800€ way too much. Don’t forget that there are more costs around a house than in a rental apartment. This concerns not only the pure additional costs but also repairs, reserves, costs for garden maintenance and other purchases around the house that you don’t have as a tenant. Saving 1000€ for a few months is okay, but keep in mind that there are also months when a new washing machine, a new computer, winter tires, car repairs or even a new car have to be purchased or the vacation needs to be paid for. For that, you should actually build up reserves month by month. If nothing extraordinary happens in the months and you subtract the reserves from your 1000€ savings rate, suddenly only 500€ remain.