Purchase of a terraced house - I need your advice

2016-08-30 14:05:16

You see, it can't work at the moment. Cold rent might be around 400€, plus the savings rate of 400€, makes a maximum of 800€. Assuming constant additional costs, you would have to pay house repairs and installments from the 800€.

Cold rent: 455 €
On average, 400 go into the next month. Sometimes 600 €, sometimes less. Definitely 200 € go into the savings book every month.

2016-08-30 14:14:48

District heating: With that, you then have the most expensive way of heating plus complete dependency on the supplier (although the installation is cheaper, but that is already included in your house price...)

Furthermore, your calculation does not include any maintenance costs: A house has maintenance costs (yes, less at the beginning, but later they come one after another). You can easily calculate with 1% of the house value per year (rather more). That is easily another 2,500€ per year for you, meaning 200€ extra per month. And this value is probably still assumed too low.

Even if you try to make the numbers look better, it probably won’t work (as you can see from the completely unanimous response here...).

2016-08-30 14:26:08

I can well understand the desire for ownership - especially in a phase where you want to expand anyway and rental prices are steep. From my point of view, however, this investment is too big; you are making yourself (yourselves) unhappy with it. I can hardly explain how you can save 600 euros monthly now, but that would no longer be possible after moving into the house. I am quite sure it would "gnaw" at you if suddenly at the end of the month you could just barely break even. If your wife were to go to work and you continued to be disciplined with expenses, then the situation would look different. Two years ago your wife was not working either, if I have read correctly, and now nothing is in sight yet.

2016-08-30 14:42:33

Thank you for your honest opinions. I will let you know in the next few days how we have decided.

2016-08-30 14:48:19

First of all, thank you for your honest opinion. Our total rent currently amounts to €634 + €120 for electricity (hot water is powered by electricity). After deducting rent and other fixed costs, about €1,200 remain per month. We save some of it and usually carry over almost €400 into the next month.

We are actually very frugal and also go on vacation once a year.

The apartment we currently live in is too small and we have to move soon. The prices for a 4-room apartment in a good location are about €900 cold rent. Including additional costs, I'm easily at €1,100. Therefore, we thought we might as well repay a loan.

The house price includes the outdoor area, carport, etc. Everything is included. And it is heated with district heating. For such a terraced middle house, the costs should be around €200 per month.

The bank has received all my data, including income, etc. The loan has already been approved.

My wife is currently on parental leave and will start working again within the next 2 years. So at least €450 will be added.

Regards

With €200 additional costs, you definitely won't get by. We once viewed a house with district heating, and there was a flat rate added on top of the heating costs, which was significantly higher than the heating costs themselves!

2016-08-30 14:57:25

I can hardly explain how you can save 600 euros monthly now, but that wouldn't be possible after moving into the house.

That may certainly work in some months. But then there are surely months when the vacation is paid for, a car repair is due, the laptop/washing machine etc. need to be replaced, Christmas presents are coming up, and so on. And then the average savings rate is only 300€. It is also not taken into account that the car is already 10 years old and won't last the next 25 years.

What is also not considered is that with the house, further purchases and costs come along (garden tools, plants, lawnmower, shelves, plant containers, swing/slide/play tower, sun umbrella, decorations, etc.) Especially the first year after moving in cost quite a lot of money.

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Purchase of a terraced house - I need your advice

papa1981

Tego12

Knallkörper

papa1981

Peanuts74

Musketier