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

The pressure on politics is growing. And there will be a reaction.

In 1980, Paul Volcker, FED chief in the USA, raised interest rates to 20 percent after US foreign trade was affected by rampant inflation rates and probably on the instructions of then US President Jimmy Carter. Very quickly even.

The situation was similar back then. The key interest rate rose quickly to 22 percent at its peak.

It takes on average about 1.5 posts to know that it’s another new account of yours etc.... somehow exhausting. And tiring. Take your 700 euros (your income of 1400 is, according to you, still worth half) and find yourself something outside the internet as a hobby... just try it.

An "interesting" house does not have to be expensive or designed by an architect, so you can certainly realize your wish. I am also one of the forum members who say that you can easily afford a house and I wish you lots of joy and inspiration with your project. The journey there is certainly more fun if you want to build an interesting house, rather than, like us, buying/building "such a standard house."

By the way: A new thread titled "What makes a house interesting" would be exciting and very inspiring. Despite my suggestion, I would first have to think about what makes a house interesting - for me - or what question it raises in my mind about who might live there. ;-) Do you have time and interest in that? I have already started over 70 threads in a relatively short time and therefore want to hold back a bit. :)

Thank you for your encouragement - we see it very similarly. An interesting house does not have to be prohibitively expensive. You just have to be a little creative here and there - but we dare to do that.

I could already create the thread, but first I need to think about what I could write about it... :)

According to Frankenbaby, the world will end tomorrow…

… and the day after tomorrow we'll see where we stand. :cool:

This can be observed in many forums. Unfortunately.

Traffic report: A wrong-way driver is on the road. Frankenbaby: One? Thousands! Your opinion conveys your worldview. You are welcome to do that privately with people who might want to listen. But here, no one has cared for a long time. However, you impose yourself, and those annoyed by it are immediately labeled snitches, and you see yourself as the poor victim of diminishing freedom of speech. But you don’t understand a "go away." And no, a forum is not(!) a public place, despite the name. On topic: I find the attitude towards financing very healthy and well-considered. The one-third rule is more something for when you lack such an overview and need very simple rules to structure yourself. It can often be the right course, but here I don’t see it as mandatory. My gut says that 2.5k should be the maximum that one endures. Gut feeling, mind you, not a calculation.

I haven't read all 12 pages of posts now. I also wonder why in such a special thread there can be a discussion about the EU's interest rate policy. Are there still any mods present here at all? Just my opinion on your post: - Very nicely and detailed presented. - Have you somehow considered that your wife might stay at home for several years? Mine also wanted to go back to work soon and then couldn't bring herself to leave the children in daycare. - With your net salary of just under €5,000, a rate of €2,500 is too much, if it is only for a temporary period then you can do that once. But that presupposes that the job can be continued after parental leave and you get a childcare place. That is not always certain even in rural areas. - Why are you building up >€1,000 in reserves? So it is certainly good to have something like that but maybe a bit much when you just built. Or are you saving for something specific? - EVERYONE I know has underestimated the long commute (from 30-40 minutes one way) and very quickly found it to be torture and a waste of time, especially when there is still the risk of traffic jams and delays. Plus the gasoline money that slips through your fingers like water. Is there a way for you not to have to do this until retirement? - I don’t want to paint every horror scenario now but: You want to build in the countryside to start a family there and accept some cutbacks for it. Unfortunately, I know some couples who have been trying to have a child for >3 years. Some of them with poor prospects. Building with a child is certainly more difficult but at least you have the “foundation” why you are building at all. You should at least clarify that internally. In summary, however, it does not look bad. There is always some risk. The proximity to family including the care of children by relatives is a huge plus that also drew us from the big city to the countryside.

I consider a rate of €2,500 completely acceptable with the income.

The 1/3 rule is just a guideline that cannot simply be applied to every income.

A family with an income of €5,000 can afford €1,650 per month for the rate according to the rule. €3,350 remain for additional costs and living expenses. With an income of €6,000 and a rate of €2,500, €3,500 remain.

Assuming we are talking about the same house and the same additional costs, the family with an income of €6,000, despite a rate of almost 42% of the household income, still has a living standard €150 higher than the family with an income of €5,000 who follows the 1/3 rule.

The only thing that in my opinion must be taken into account with such a rate is the income distribution. It becomes critical at 50:50 during parental leave etc. However, since the division here is clearly one-sided, parental leave can also be well bridged by parental allowance and child benefit.