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

And in reality, this currently only works if you have a lot of money. The top 10% by income probably won’t be enough; it has to be more like the top 2-5%. So we’re talking about an ideal case that is practically not applicable in reality. Either you pull yourself together and live a bit more frugally, or you extend the financing period. Unfortunately, your prices are absolutely far from the current ones, now with higher interest rates.

And in reality, this currently only works if you have a lot of money. The top 10% by income probably won’t be enough; it has to be more like the top 2-5%. So we’re talking about an ideal case that is practically not applicable in reality. Either you pull yourself together and live a bit more frugally, or you extend the financing period. Unfortunately, your prices are absolutely far from the current ones, now with higher interest rates.

If the financing runs longer and significantly into retirement, you have basically exchanged the landlord for the bank. Advantage: The bank only cares about the monthly payment coming in and gives you far fewer rules than the landlord.

Man, that really makes you feel poor immediately. I really can’t keep up with that. I have 1400 net and a company car with fuel for private use. My wife gets another 1000 euros net. A little bit extra here and there and we don’t even have 3000 euros monthly income. Anyway, our house is paid off. We didn’t need a loan for that either. The Mercedes is also paid off. It’s a bit older, but paid off. We can go on vacation, we also go out to eat sometimes, and we enjoy our big garden with a pool. No, nothing inherited or gifted. All nicely self made. We also save a lot every month and still have six-figure equity. Now we’re buying a nice motorhome and going on some trips. Old wisdom: You don’t get rich by what you earn, but by what you don’t spend. I wouldn’t know why I should give up my financial freedom in my young years for the rest of my life with an income of 9000 euros. All paths are open to you. It doesn’t necessarily have to be a 700,000-euro loan for a house. Unless you’re Croesus!

And in reality, this currently only works if you have a lot of money. The top 10% by income probably won’t be enough, it would have to be more like the top 2-5%. So we are talking about an ideal case that is practically not applicable in reality.

Exactly. In this case, the costs for the land are already quite "cheap" – for the times before the interest rate turnaround. If you look at the projects here, the prices were rather around €200,000 +/- €50,000 – often only the size varied depending on the area. Then comes a house that, roughly estimated, will also require something around €400,000 plus ancillary costs. €650,000 property value, assuming €200,000 + everything else as equity, currently results in a payment of €2,500 to pay it off in 20 years at 3.5%. That means you need €7,500 per month and >€200,000 equity – for something that is probably still average in terms of price. Every additional €50,000 that shifts the assumptions more towards metropolitan area prices significantly affects equity & payment. At €850,000 for the project, and >€300,000 equity, we’re then at a €3,000 payment and the "famous" €9,000 net income.. ;)

If the financing runs longer and clearly into retirement, in the end you have exchanged the landlord for the bank. Advantage: The bank only cares about the monthly payment received and gives you far fewer rules than the landlord.

No one is talking about letting the financing run into retirement, they are still too young for that. You just have to drop the dogma of the thirds ;)

Nobody is talking about letting the financing run into retirement; the two of them are still too young for that. You just have to drop the dogma of the thirds ;)

I'm not that dogmatic: up to 1/3 of net income is comfortable, between 1/3 and 50% there is a gray area: it can work, it can also go wrong, and above 50% is a death zone: it will most likely go badly...

Why not, by the time they retire, 9000 EUR is the Hartz 4 rate or hopefully unconditional basic income...