Small single-family house, little equity but good income, is it at all feasible?

sorry, but your statements regarding the choice of tax declaration classes are completely unqualified. Where did you get your knowledge from...read somewhere? Then keep it to yourself, because your statements only unsettle people and give false information.

Just briefly for clarification: Of course, it does matter how the salaries are divided between the spouses. In the mentioned case of the thread starter, however, there will be a back payment, but this is because his wife receives parental allowance and this is subject to progression. But if the wife is only marginally employed in the following year, there will be no back payment, provided of course that there are no further incomes...

So, and now back to the essentials, the house construction...

I'm not saying that with the 3 / 5 constellation you always have to pay extra. Roughly speaking, the OP gets about €400 more net per month here because of Class 3. That's generously rounded down to €4000 more per year than unmarried. Anyone who thinks that's the marriage bonus from the tax office is mistaken - sorry.

And this is not just about the house construction, but also about the financing.

@emer Have you ever heard of the splitting method? If the woman in tax class 5 doesn't earn anything extra, then he is allowed to keep this additional net income. Who is really misguided now? But this is not meant to be tax advice, so back to the essentials!

Although I am relatively new here, I am an expert! Whether a financing is possible or not mainly depends on 2 things! The debt service capacity and the collateral! Debt service at my bank as a calculation for you! As a family with 1 child, your fixed monthly living expenses with us are 1700,- plus 2,- per sqm of living space, 120 sqm, 240,- Euro! In other words: 1700,- Euro Ancillary housing costs: 240,- Euro = 1940,- Euro of your monthly income are needed for living expenses. Everything left over is available for financing! If you have other payment obligations, you have to include them; savings contracts etc. do not count! You bring 3200,- +1000,- wife +184,- child benefit = 4384,- monthly - 1940,- = approx. 2000,- per month remain for financing. Up to 300,000,- financing I see no problem with the 20,000,- equity with 1200,- monthly burden. It is also possible to do more, but that always depends on the property! The quick repayment can be seen in different ways. With the expected inflation, it is much better to have debt! And if the house is too big at 65 and you still owe a little, that is no problem, then you just sell and buy a nice age-appropriate senior condominium! To improve your equity, you can also provide substitute collateral such as surrender values of life insurances, land charges from the parents. Greetings! Michael

Good morning,

quite a few posts have accumulated.

@Onkel böckes
Thanks for the flat rates, that's already a starting point. Based on my gut feeling, I had speculated with about 1500-1700 euros monthly payment as an upper limit, 2000 is probably a bit too much to calculate if a car or household appliances are due.

If one can trust various tax calculators on the internet, this means that with my annual gross income of about 63,000 euros, child allowance, full insurance contributions and work-related expenses, no church tax, my wife can earn about 10,000 euros per year without there being any additional payment.