Property in good condition financable?

Many are not aware that vehicle financing can even be an advantage in this case. Through my last two successfully completed car loans, I already have two positive entries in the Schufa. If you regularly service larger loans, it has a positive effect on the Schufa. You can simply research this or talk to a banker.

You are overestimating the issue. Either the Schufa is okay or it is not. But the details no longer interest the bank.

I also don’t want to justify myself for everything. Sure, the decision for the car wasn’t optimal, but I could sell it at any time, would have no liabilities anymore and would save €475 per month. So please don’t get stuck on that.

Of course you’re right, you don’t have to justify yourself here at all.

Still, from my point of view, you simply haven’t understood the core of the criticism yet. Anyone who finances a car in this price range with your income simply has a problem managing their finances. This is already shown by this small (apparently insignificant to you) detail. I think that can be said quite clearly in your case.

You apparently still need to learn what you can afford and what you can’t. That certainly sounds harsh, but you wanted honest feedback.

I also do not want to justify myself for everything.

You don't have to. But you should reflect on yourself and consider whether you are sugarcoating or justifying a lot for yourself, like numbers and consumption, and thereby lying to yourself.

Of course, it is possible to purchase a property despite having a vehicle financing.

Again: You are not a candidate the real estate market has been waiting for. In the past, before online banking, there was a saying: if the banker addresses you by name, you must have high debts. Because that's where the bank earns the most - And those who don’t know better are even proud of it.

Now I'll play bank:

Income: €6,500 monthly (assuming you can prove that the mini-job is sustainable and long-term)
Living cost flat rate: €3,250 monthly
Car loan: €475 monthly
Remaining for a payment: €2,775 monthly
For a 100% loan-to-value (so according to my calculation a loan of €420,000 we would currently charge 3.65% interest and 3% repayment).
We would reject the financing at the amount you requested – just so you know.

Now to the asset situation:
Asset estimate: reserve €20,000 on the credit side
Liabilities estimate: car loan €50,000 on the debit side
This already involves a manual review of the financing request with us because the customer is over-indebted.
It will be hard to sell that to the bank – a fancy car and no money for it, but wanting to finance a house to the max.

What reasons should a bank have to finance you? You can barely afford the payment, you are over-indebted and a career starter.

I wish you lots of luck, you will need it. Not to mention all the other issues with the property (valuation, photovoltaics, energy efficiency, already 25 years old, etc.).

Ok, I'll bite...

How do you imagine managing the €2,325 annuity/month (purchase price €420k + 10% incidental costs with 1.8% repayment and 4.2% interest) when you have a child and the second income disappears?

From my own experience: child benefit is not nearly enough to cover additional costs caused by the child and parental allowance is only 66% of the last income.

By the way, after 10 years of repayment, about €360k in debt remains for a house that is being purchased today for €420k and then is 10 years older...

This is a comprehensible calculation. My salary currently increases by about 5-7% per year (through collective bargaining and private negotiations). It is currently €54,000, which with an increase of only 5% over five years results in about €69,000, corresponding to a net income of €3,500. My wife, with her current income (which will still increase until that point) of around €60,000 gross per year, corresponds to approximately €40,000 net at 66.6%, which corresponds to a net income of €2,240. Of course, at that point you could even consider playing with the tax class, since I can deduct quite a bit due to 100% remote work, but I do not want to make hypothetical calculations here. That means you would be at about €5,740 net per month. I agree about child benefit, so I do not even count it in. Here you would of course have to add my wife’s increasing salary, but I have no information about that, so I left it out.

Have I missed something, or is my calculation correct?

Yes, the remaining debt of €360,000 is of course still high, but considering that the incidental costs were not borne by ourselves, the repayment over 10 years is still good, right?

Now I’ll play bank: Income: €6,500 monthly (assuming you can prove that the mini-job is sustainable and intended to last) Cost of living allowance: €3,250 monthly Car loan: €475 monthly Leaves €2,775 monthly for a payment. For 100% financing (so according to my calculation a €420,000 loan we would currently also charge 3.65% interest and 3% repayment). We would reject financing in the amount you requested – just so you know. Then we come to the asset situation: Asset assumption: reserve €20,000 on the debit side Liability assumption: car loan €50,000 on the credit side This already involves a manual review of the financing request with us, since the customer is over-indebted It will also be hard to sell this to the bank – fancy car and no money for it, but want to finance a house up to the brim. What reasons should a bank have to finance you? You can hardly afford the payment, you are over-indebted and a career starter. I wish you all the best, you’ll need it. Not to mention all the issues with the property (valuation basis, photovoltaics, energy efficiency, already 25 years old, among others).

Thank you for your honest feedback. We have both been employed for at least 4 years, without university or apprenticeship. Yes, the mini-job is sustainable, as my wife also helps in elderly care one or two nights a month on the side as a nurse. This is organized by the same hospital where she is also employed full-time. About the car: As mentioned, I am considering giving up or changing the car, but I would rather not do so until I am 100% sure that the property corresponds to what I was told. What would be the right next step now, since according to the realtor I first need a confirmation from the bank?