Purchase of an existing single-family house prefabricated house year built 2000

Yes, here the progression proviso is confused with actually taxable income. Only the tax rate on the remaining income increases here. However, this increase is certainly less than the additional parental allowance gained. The €1000 more parental allowance might cause maybe €100 more income tax. Anything but a zero-sum game.

If you split parental leave 50/50 with your partner, would it then be about a zero-sum game again? (assuming neither partner is already at the max limit)

Quick update, we will now buy the house! The application was sent to the bank today, the initial scoring was positive, so everything should go through! During the term, I could even reduce the repayment to up to 1 percent! Although not planned, having the option provides additional security! Additionally, a building savings contract will be concluded to secure a good interest rate for me after the fixed interest period of 20 years! There was not much to complain about the house itself, only the screed will need leveling in the living room if a new floor is installed! The garden needs a bit of care, that’s about it overall! The facade is tip-top, no cracks or anything similar were visible! The roof truss and basement looked practically like new!

Congratulations!

Have you actually looked around for financing? 3.4% is quite high. The interest rates have gone down a bit again. On the Interhyp website, the rate for 20 years is 3.29%.

Didn’t you want to reduce it to 15 or 10 years? You could also save a bit that way.

Quick update, we are going to buy the house now! The application went to the bank today, the first scoring was positive, so everything should go through! During the term, I could even reduce the repayment to up to 1 percent! Although not planned, having the option provides extra security! Additionally, a building savings contract will be concluded to secure a good interest rate for me after the fixed interest period of 20 years! There was not much to complain about the house itself, only the screed will need leveling in the living room when a new floor is installed! The garden needs a bit of care, that’s about it overall! The facade is tip-top, no cracks or anything similar were visible! The roof structure and basement looked practically like new!

So, at which bank?

ING lowered the interest rates further this week (on Tuesday). The next reduction will occur on Monday.

Depending on the location (regional discount), you should be in the range of 3.0-3.1% for 20 years.

I’m happy to help ;)

Congratulations! You will definitely manage the installment. Maybe there will be one or two salary increases by the time the baby arrives.

I would strongly advise against purchasing.

Has the house been thoroughly inspected? A nice facade can hide a lot. Why was the bathroom completely renovated after 18 years? Was something leaking? In a prefabricated house, that is deadly. Not to mention the possibility of mold or worse in the ceilings and walls. I would investigate that first.

I wouldn’t count on 450 € for operating costs anymore. It will definitely be much higher. 80 euros for electricity is unrealistic. Costs for heating oil, currently about 1.50 euros. How big is the oil tank?

You will have to expect at least 150-200 euros for electricity. I also think about 200 euros minimum per month for heating oil. Plus firewood. Yes, that costs money as well. Property tax, insurance, water, sewage, garbage, possibly street fees, that adds up quickly.

We are easily talking about 700-800 euros in monthly maintenance costs. Maybe not this year, but probably next year. Grocery costs will also be difficult with just 100 euros per week if you don’t want to live on oatmeal alone.

You can keep the heating system. Oil is currently the cheapest heating method.

But despite all circumstances, I find your approach difficult. The house feels too small and too expensive. Regardless of the plot. A prefabricated house is something special and experiences higher depreciation than a solid construction. That doesn't happen without reason.

With such a high amount of equity, I would simply wait. Cash is king, and we might be on the verge of a deflationary shock similar to the Great Depression of 1929. Probably even worse.

You can already notice the lack of liquidity everywhere. Wait a few more months and you will be able to pick houses with a 30 percent discount. You are still very young, without experience. There is no reason to panic at the last moment.