Rule of thumb financing rate

Approach it differently: what do you spend – incl. vacation, class trip, broken car, washing machine replacement, and hairdresser. Without knowing you: €400 per person + €100 car + €2 incidental costs per sqm + €100 reserve -> €1300 Children neutral -> rather €700 installment than €1000, otherwise life might get uncomfortable and you sacrifice the "house dream" more than you think.

Could it be that the woman is not even present yet?

If I now assume just one person, it would already be tight: €1,000 installment + €300 additional costs, leaving €700 for living expenses. That might still be possible for one person, but it’s still not much. But what do you think, what costs do 4 people consume per month? €700 for 2 people is already unrealistic, and with 2 children it’s even more impossible to manage. And before the argument about child benefits comes up: that might be enough in the first year and if you don’t have to buy everything new and the children don’t yet attend daycare, maybe even longer. But at the latest, when the children are older and/or go to daycare, child benefits are definitely not enough. Personally, with that income and 4 people, I wouldn’t commit to a new build unless there is a lot (and by that I really mean a lot!) of equity available.

First, keep a household budget book for a while and write down every single expense. Then check whether you are fully covered or if something still needs to be added (disability insurance, pension, liability insurance, household insurance, etc.). This way, you quickly get a feeling for how much installment you can manage. It also always makes sense to go to your home bank once and get non-binding advice from a professional.

1000 installment with 2000 net income might work if you buy an apartment as a single person and pay it off over 3 or 5 years. But not if you finance it long-term and have to support a family with it. Is that 2000 net income alone or together? Otherwise, it would make sense for the partner to work at least part-time and maybe make it 3000. Then a 1000 installment would be conceivable.

And it also makes a difference whether the 1000 installment is calculated with 2% repayment or 5% repayment.

This is my pure net income, at the moment my girlfriend is still working and there are no children yet.

But later on as the sole earner with 2 children, is a 700 Euro installment okay then?

For us it would be okay - but we are rather modest - drive a 10-year-old car, go on vacation to the North Sea, shop at Aldi. If you, as Yvonne has written several times, lease an A5, go on vacation in Japan, and only shop at Edeka, it might be uncomfortable for you. Keep a household budget for 2-3 months and see - it gives great insights ;)