Property in good condition financable?

Are 45,000€ still outstanding? In the first post it said that there are "only" 5,000€ in obligations?

I hope by the 2% in the financing you mean the repayment...

Correct, I was too tired and made a mistake.
A repayment rate of 1.8 to 2.0% is planned.
I did not mention the outstanding 45,000€ directly, but I included the 475€ under mobility expenses in the opening thread, as I know several people who bought a property and financed a car in parallel, and it didn’t matter.

Honestly, this thread seems suspicious to me somehow. Let’s establish:
- Mid-20s
- 0€ equity
- Several consumer loans (liabilities >5,000€)
- House with dubious information from the previous owner regarding energy efficiency class and electricity consumption (additional costs)

Please don’t waste the banker’s time unnecessarily.
Pay off the consumer loans ASAP, save at least 70k in equity, and then reshuffle the cards.
This story sounds like a nightmare for a financial advisor :p

This step is not just about buying any house, but this very one.
As I already mentioned in the opening thread, it was originally planned to approach the purchase within the next two years.
However, the current property appears to be an excellent opportunity... provided the realtor has not lied.

That is why I registered to evaluate which aspects I might have overlooked.
There is no point in constantly repeating the facts and being pessimistic.
If this purchase doesn’t work out, then so be it, and we will continue to save equity. But comments about being in the mid-20s and having no equity are simply no longer contemporary. We have crisis-proof jobs and earn well above average, so I don’t understand this pessimistic attitude. With a purchase price offer of 420,000€ and an interest rate of about 3.4% as well as a calculated repayment rate of 1.8%, we would pay roughly 1,800€ monthly. Of course, we would still have to consider the additional costs (notary, realtor, etc.) amounting to 46,000€, but with a loan from my house bank at an interest rate of 5% over 10 years, that would be 500€ monthly. Of course, there are certainly other ways to achieve our goal. Assuming monthly additional costs for the house after purchase of about 450€. Now we are at roughly 2,800€ warm. Ultimately, with a household income of at least 6,500€, it is quite realistic to afford roughly 2,800€ warm per month for the house, right? That would leave at least 3,700€ left, which is 1,850€ per person – an amount some earn monthly while we would already be paying off the house. The advantage would be that in 10 years we would only have a residual debt of 330,000€ and from then on would only pay the 1,800€ monthly. We could move into the house immediately and wouldn’t have to save for another 2-3 years to accumulate the equity.

Can one maybe understand my approach better now?
Please don’t fixate on the interest rate… I based this on Check24.

The kitchen loan would not be a problem, you could sell it to the next tenant.
But the rest doesn’t fit.
Leave your house bank out of it, otherwise they won’t take you seriously anymore for now.
€45,000 car loan that is serviced with only €475? Nothing remains when selling except the installment.

Exactly, that was the plan, or if there is a remaining balance after the sale, it can then be paid out of pocket.
We still have enough money, but not to the extent that it could serve as equity.
The car is already half paid off, so we would get enough money back to purchase a smaller vehicle and save €475.
Of course, it would primarily be a loss-making transaction (a pity about the down payment), unless I can sell it privately instead of trading it in at the dealer.

€0 in equity, but a luxury car on credit (although it’s not even used for commuting) and then directly into an even bigger loan. Financially it might work as long as you both work full-time, but somehow the alarm bells are ringing.
In general: Don’t be dazzled by the real estate agent. Spending €50k on the garden sounds good, but it has little effect on the value and substance of the house. Energy class A for the heating is another confusing real estate agent claim. Actually, there are energy classes for the building, not the heating. And supposedly major renovations in 2020 but no heat pump ...

Exactly, I see it the same way.
Unfortunately, the car situation is true, so I am considering changing it.
I was not aware that the garden does not affect the value and substance, so I wonder whether an offer of €420,000, when the agent asks for €500,000, is bold or completely reasonable in the current interest rate situation?
Unfortunately, I have little experience in this respect and am unsure how much leeway is acceptable, even though you can’t say that in general terms.

Sorry, just to make sure I understand correctly: The car is half paid off and there is still 45k outstanding?

Sorry, just to make sure I understand correctly: The car is half paid off and there are still 45k outstanding?

Yes, since I made a large down payment, the installment is very cheap. Normally, the installment would be in the four-digit range.

Sorry if I'm being so direct, but: You can't handle money (no savings, luxury car on credit), have €50,000 in debt, no idea about buying a house, and let yourselves be lulled by real estate agent statements.

That won't work...

The kitchen loan wouldn’t be a problem, you could sell it to the next tenant.

Who on earth buys a kitchen loan? Anyone renting an apartment doesn’t have to do that.

I wasn’t aware that the garden doesn’t affect the value and the substance,

Of course, it also increases the value of the house. The question is what was done for 50,000€. It won’t be a tree on a 220sqm small plot.
.

I have to smile:
Nothing is as presented.
What is still described here as fact…

A year ago the previous owners carried out renovation work worth over 100,000€, including a new garden (cost 50,000€), an efficiency improvement through a new gas boiler and covering the entire electricity demand of the building. It is a terraced end house with a large , etc. The house is very modern and should not need any further work for at least this decade.

… is corrected here.
House cost 500,000€ instead of 450,000€
EE E instead of A
Mobility costs turn out to be a car loan
Liabilities of about 50,000€ (can you even get a loan for that?)
Mmmm… you don’t take the truth all that seriously, do you?

With a purchase price offer of 420,000 €

Here you’re also fooling yourself a bit: There is no purchase price offer of 420,000€; there is one for 500,000€…

And now it even looks like that although in your eyes no children are currently planned…

and are currently not planning any.

… one has to assume that your wife will want children later – then the income situation looks a bit different.