Situation in the real estate market... madness

Has it really been like that in recent years? A young family in their early/mid-30s then has a rate of €1,500 with a 30-year term (i.e. about 4.5% annuity) and can still spend €4,500. What can the family not do that, for example, someone in Düsseldorf/Frankfurt/Cologne/Munich, etc. can do? There, a new apartment quickly costs €1,500 for 100 sqm – so smaller than the house and not to mention the garden and quality of life (which is the argument for most homeowners).

For me, it does...
The calculation is always a bit tricky.
Let's not assume €6k or €4k, but rather the middle. So €5k.

Example:
House loan - 1500
2 cars - 1000
Daycare - 500
Insurance all included - 400
House reserves - 200
Food for 4 - 1000
Clothing all included - 200
Private pension - 300
House utilities: 250

That's already €5,350.

Now, the family naturally first has to bring home €5k net while one partner works part-time.

Furthermore, not even major cost items are mentioned here that one might suspend for a year or so. So, these costs last longer.
Then there are birthdays, Christmas, Easter, St. Nicholas, sports club, braces, class trips, etc...

And the family hasn't been on vacation yet either.

So, even with €6k, this doesn’t look extremely bright to me personally. (It should, though, with a €6k salary).

Sure, is it possible to finance €400k with €6k? Yes! But comfortable for ME personally is something different.
I mean, if I already have a job that pays that well, then I have to perform above average. And if I already perform above average, then I want to live relaxed on all levels, please. At least me.

Now imagine the loan is not €400k, but €500k, etc...

Again: relaxed looks different to ME personally.

It's just a feeling.

May I turn the question around? In other words, what do the numbers look like in your opinion for the "normal earning" home planners?

Example:
House loan - 1500
2 cars - 1000
Daycare - 500
All-in insurance - 400
House reserves - 200
Food for 4 - 1000
All-in clothing - 200
Private pension - 300
House utilities: 250

That’s quickly 5,350.-.

But you can also calculate it differently:
- Only 1 normal car: 300
- Daycare is quickly eliminated or is not charged at all by the city
- No direct reserve formation, since new building
Then we are at 3,950 in the example calculation. That fits easily with 5k net + child benefit.

Example: House loan - 1500 2 cars - 1000 Daycare - 500 All-in insurances - 400 House reserves - 200 Food for 4 - 1000 All-in clothing - 200 Private pension - 300 Additional house costs: 250 That’s just 5,350.-.

Then I’ll now replace the house loan with €1,500 rent and remove the reserves for the house (however, the tenant will also need those through rent increases over the years) and come “just to 5,150€.” And now please explain to me how the tenant is better off then? The homeowner at least saves €1,000 every month as part of the repayment. If the tenant also wants to save €1,000, they come “just to 6,150€.” Crazy, right? And that with a lousy apartment If you’re already making a calculation, then please include the comparative calculation.

What is the use of these generalizations? For concrete numbers, there is concrete help, even here in Finanzfred, and here people even tend to advise against things too often. I just don’t find it productive not to differentiate. Example: 2 cars = 1000,- / month. We both commute and together have (yes, also proportionate taxes and so on...) 500-550 euros. And now? Insurances are the same. And so on. You really have to look at each case individually, then you can give correct advice; before that, it’s just speculation and assumptions.

Then I'll just swap the house loan for 1,500€ rent and cancel the reserves for the house (which the tenant will also need over the years due to rent increases) and quickly come to "5,150€.

And now please explain to me how it is better for the tenant? At least the homeowner saves 1,000€ per month through amortization. If the tenant also wants to save 1,000€, he quickly comes to "6,150€". Crazy, right? And this with a crappy apartment

If you're going to make a calculation, then please include the comparison calculation.

Hi Norderney,
Well, your assumption that, for example, the apartment should have exactly the same luxury as the house is just "not my assumption."

I can also live very well with 4 people in a 3.5-room apartment for 1000EUR. (A friend from Kiel moved to Hamburg for some reason 4 months ago. He secured cooperative shares for 4k and rents a 3-room apartment at the fish market for 750EUR WARM!).

Here is the comparison calculation you demanded:

Rent - 1000 (WARM!)
Mobility (instead of 2 cars) - 300EUR
Daycare - 500
Insurances all in - 400
Apartment reserves - 100
Food for 4 - 1000
Clothing all-in - 200
Private pension - 300
Additional apartment costs - included in rent

That quickly makes 3800EUR.
With a 5k salary, 1200 remain for everything else including vacation.

In the meantime, the family lives at the fish market in Hamburg, doesn’t have to fear horrendous rent increases (cooperative), has short distances etc etc.
So, living badly looks different to me.

Of course, you have to like/tolerate city life. But it’s the same in the countryside. You have to like/tolerate that too.

Regarding the 1k for 2 cars, I took that number here from the forum where 500EUR/car is constantly mentioned. This value then includes everything concerning the car.
If someone now starts and says "but I only pay 150,- because I got the car as a gift," then we could also assume that the person has to pay debts of deceased parents amounting to 150k for it. (Which is of course nonsense).
That’s why we assume that you have to buy everything new/used.