Single-family house: Is the rate realistic? How much house can we afford?

  • Erstellt am 2022-07-07 14:49:30

Gelbwoschdd

2022-07-11 13:45:26
  • #1
No idea why some people see this so negatively. But I wouldn't know where there should be serious problems here, except maybe that the completion of the house could be affected by a shortage of materials. However, this currently affects all builders and is probably relatively independent of the budget. What isn't there simply isn't there... but it seems to me that the OP would then have enough family in the nearby area where he could stay if the construction is significantly delayed and the rental apartment might already have been terminated.
 

Crossy

2022-07-11 15:53:14
  • #2
I'm not saying it's not doable. But I don't think it will be as easy as you think. Architecturally demanding, for example, I don't see as feasible with that salary. I think it will result in a pretty standard single-family house. Also, you're being optimistic about your salary increases. The roughly 300 EUR more per month are currently just about an inflation adjustment. We once planned a house with a planned family income of 6k but back then with a 1750 EUR installment. And I'm glad that, given the current situation and 2 kids, it didn't turn into a 2.5k installment.
 

Ysop***

2022-07-11 17:56:32
  • #3
Since the €9,000 net income has already been listed here, here is a quote from the current Handelsblatt on the topic of who can still afford home ownership:

"Those who are interested in construction financing today have an average net household income of well over €5,000 per month according to experts' calculations, placing them among the top 15% of the population in terms of income."

But also: "The growing gap in the buyer's market is also evident when looking at the equity used. From the 1st quarter of 2022, for the first time, equity of over €200,000 was requested for an average construction financing. In the first quarter of 2016, the equity was still under €80,000."
 

BackSteinGotik

2022-07-11 19:00:31
  • #4


Yes, the €9,000 is certainly (still?) somewhat exaggerated, but the direction is clear – Q1 22 was still characterized by low interest rates. And even then, the required equity injection was quite high – parallel to the necessary household income.

The numbers for Q2+Q3 22 will be interesting. To keep the installments somewhat manageable, as we can see here in this thread, a good income is mandatory (€6,000+ if you want to stick to the one-third rule) and of course better solid equity.
The combination – solid equity but hardly any income, which has occurred in the past, will likely no longer be applicable. High income, no equity could now be difficult. A 100% financing at 4% is probably not done for properties that still contain several hundreds of thousands of euros of bubble value. For that, external capital is simply too expensive at the prices from the boom. A €700,000 loan becomes tight with the mentioned well over €5,000, as well as with €6,000 or €7,000.

Given the current construction costs, the pressure on land will now become interesting – so far, the values have only gone in one direction. Now the limits of financial affordability have been exceeded for very, very many. This will show whether municipalities, as before, could auction off to the highest bidder, or whether the supply at the current price level already exceeds the potential demand. And then, in the second step – where, under the new conditions, is the new equilibrium – i.e. price level?
 

Marvinius

2022-07-11 20:09:36
  • #5
Very good assessment. The thread starter can definitely build, but with his family income and planned children he should keep the installment under 2k. With his equity buffer, the possibility to get an inexpensive plot of land, and his possibilities for personal contribution, that should be doable if demands are reduced. So no architecturally demanding design and no masonry double garage. However, in the current situation one should consider having a fireplace in the house....
 

driver55

2022-07-11 20:10:23
  • #6
I had brought that into play to illustrate both "extremes" with the 1/3 calculation.
 

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