Risk house financing or not?

Hello Britta,
I ask because it was never an issue for us whether equity or debt capital is used first. Submit the invoice and the money is in the account...

... well, the sum does add up if you only use the loan amount from the beginning ... let's take an amount of €50,000 with commitment interest of 3% ... that roughly comes to about €125 per month in your head ... but if you don't want to or don't have to use your equity at the beginning ... you should consider that the interest to be paid is "money wasted" ... but: those who have, can ...

Best regards Britta

Hello L.W.

May I ask what your husband does for work? And if he finds a new employer, I assume he will also have a probation period where a lot can happen.

Hello dear people,

somehow I don't quite understand why my husband's salary has become the topic here now???
The question was clearly stated. Should we dare to take out a loan of about €400,000 with our existing financial means or should we rather wait until husband and wife earn a bit more or have saved some equity?!?

My husband works in the hospitality industry. There will always be people who eat and sleep out. So this part should be settled already.
He is young, can sell himself well, loves his job, and is hardworking. Why should he have to constantly worry about his job??? I think at least half of those present here own a house and are still in an "employee situation", right? And are they all now trembling about their job and their house??? If you don’t work in a family business, no one can be sure to keep their job for the next 20 years either!

I think I wasn't understood correctly here. We are considering building. We are not at that stage yet. Maybe we will only build in 2-3 years. If we move to the border, my husband will look for a job at the border beforehand. That is the basis for financing a house at all. He does not intend to work in Germany either. Unless he becomes self-employed. That’s why there’s nothing to discuss about how much he would earn in DE.
And why is the probation period mentioned here? If you are hardworking and committed to your job, you have nothing to fear during the probation period. Besides, the bank requires an employment relationship that has already existed for at least 6 months, if not longer, to ensure ability to pay...
And if you look for another position early enough, you can resign worry-free. There is a 2-month notice period after all. So, enough now about the job and the salary.
This is about house financing after all.

Best regards

Why is your husband's salary being discussed here? Well, that's what building is all about... money. If you are sure that your husband will keep his job, and if not, can find a new one at any time, then go ahead. What you really should be warned about is financing 400,000 entirely through the bank. That’s a lot of money and ends up costing a lot. With a bank loan, you should always consider what it will cost in the end. Not just whether you can afford the installments. I know that 4,000 net in Switzerland is rather average, but in Germany quite decent. However, you should also calculate what fuel costs, how much your husband needs for meals during the day. All that comes out of the net income. I worked for a client for one week in Zurich and paid the equivalent of 19 € every lunch in the cafeteria. That was 150 € just for lunch in the week alone. But I can write a lot, I simply don't know your habits. In the end, no one can decide for you either. You are still young, and if I were you, I would save equity for a few more years. Loans become affordable when you bring about 40% equity. As I said, you have to decide. I consider 400,000 too risky and unreasonable.

I agree with Der Da.
I had already mentioned the costs that such cross-border work entails, but it was not answered. You need to deal with that.

But one more thing: How high are your commitment interest rates? Add your rent to that. Can you afford that during the construction phase? It probably isn’t insignificant with 400k! Then consider that during the construction phase everyone comes along and wants something extra, and you also have to be able to pay for that without refinancing or having to forego it. If you can do that, then start!

And about your "secure job": Anyone who wants to can basically learn the hospitality trade. Many people also put in a lot of effort, and there are surely many who do it cheaper than your husband! What if times change (and they do!) and he no longer gets so much?

All I can say is, I have so much equity in the house that if I have to sell for whatever reason, I simply can’t get so little that I end up in debt afterwards. You then have debts well over 400k. Because you have to compensate the lender.

Well, dear Perlemann, if you had enough equity, then I’m happy for you. We don’t. Like many others. Ask me again when I’m 40.
It’s clear that you have to deal with the resale value.
But honestly, we plan to build near the BORDER. That means we don’t want to commute more than 20 km to work. There is no discussion about whether you want to make the trip back or not!
Everyone has to work. One way or another.

We will be able to handle the prepayment interest. Because we also calculate a monthly rate of about €1700-1800 later. That’s €600 more than we pay now in rent.

And who does what training should be up to everyone. That can be extended to almost all professions. There will always be people willing to work for less money. But much more important here is quality, not quantity. Everyone can learn it, but not everyone has the talent for it. Or have you always eaten equally well in all restaurants??? Exactly, learning is not automatically mastering!!!
Who can do something is also allowed to demand something. You should have that much self-confidence.
And if only those who work for less money were hired, then my husband definitely wouldn’t have a job.
And since his training, he has always raised his salary demand by about €100-200 at every new job. Employers pay him his salary and appreciate him as an employee PERIOD!