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

I haven't read all 12 pages of posts now. I also wonder why in such a specific thread a discussion about the EU's interest rate policy can take place. Are there any mods still present here? ...

I just wanted to correct what the gentleman claimed without really having any knowledge of the subject.

On the topic, I can only say that with an income of €6000, a rate of €2500 can be too much or not. I would simply practice by setting aside €2500 for 6 months.

We are currently doing the same and it’s not that easy at all. So far, I have always bought something after the 4th month, which reduced the savings rate. Of course, we still pay rent on top of that.

I find the attitude towards financing very healthy and well thought out. The 1/3 rule is more something you need when you lack such an overview and require very simple rules to structure yourself. It can often be the right course of action, but here I don't see it as mandatory.
My gut says that 2.5k should be the maximum one allows themselves. Gut, mind you, not a calculation.

- Very nicely and detailedly presented.
- Have you somehow considered that your wife might stay home for several years? Mine also wanted to work again soon but just couldn’t bring herself to leave the kids 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 it once in a while. But that assumes the job can be continued after parental leave and that you get a childcare spot. That is not always guaranteed even in rural areas.
- Why are you building up >€1,000 in reserves? It’s certainly good to have something like that but maybe a bit much right after building. Or are you saving for something specific?
- EVERYONE I know has underestimated long commutes (starting from 30-40 minutes one way) and quickly found it to be torturous and a waste of time, especially if there is the risk of traffic jams and delays. Plus the fuel money which runs through your fingers like water. Is there any way for you not to have to do that until retirement?
- I don’t want to paint every horror scenario, but: You want to build in the countryside to start a family there and accept some cutbacks for that. Unfortunately, I know some couples who have been trying to have a child for over 3 years. Some of them with poor prospects. Building a house with a child is more difficult but at least you have the “foundation” why you are building in the first place. You should at least clarify that internally.

In summary, though, it doesn’t look bad. There is always some risk. The proximity to family including childcare by relatives is a huge plus that also drew us from the big city to the countryside.

I find a rate of €2,500 completely okay with that 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 spend €1,650 per month on the rate according to the rule. That leaves €3,350 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 €6,000 income has despite a rate of almost 42% of the household income a living standard higher by €150 than the family with €5,000 income which 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. At 50:50 it becomes critical with parental leave, etc. Since the distribution here is clearly one-sided, parental leave can also be well bridged by parental allowance and child benefit.

Basically, it is enough to set aside the rate minus the cold rent plus higher additional costs (these are higher for the house than in the rented apartment). However, in case of doubt, I would always add 200-300€ if possible, then you have a buffer for rising living costs or things that come after moving in (garden tools, various furniture stuff, etc).

A similar exercise has been running with me for a while as well. I can only recommend it.