Vildhjarta
2020-07-11 11:13:39
- #1
Hello dear forum members,
I have been dealing with the topic of house building/purchasing for a year now and came across this forum through this. I have been reading along here for a while and really like your quite critical assessments.
Basically, I was initially a bit shocked by the prices being asked for on the real estate market, but that is probably the reality.
I also see a property as a long-term investment, as I currently prefer not to invest my available capital solely in stocks & co.
Construction project:
Building/purchasing a single-family home with approx. 150m² + basement and approx. 600m² plot.
In my home community (edge of the Odenwald with approx. 45-60min simple driving distance to the Rhine-Neckar/Main area) a new development area is planned towards the end of the year. The development plan is in progress. We have put our names on a waiting list of interested parties for this. I estimate that the costs for the plot will amount to approx. 100k€.
Basically, an existing property is also an option.
In my possibly optimistic hope, I have imagined a cost framework up to max. 450k€.
General:
He (27) + She (25) in a relationship of several years, unmarried without children. Marriage in the near future is quite conceivable, the desire to have children is also present.
Income and asset situation:
Expenditure situation:
I list our cost blocks separately, since there is no joint household account yet. Most of the joint costs are borne by me.
Basically, it should be said that both of us are actually economical (except for a few exceptions). Variable cost blocks are calculated generously.
(He)
- Warm rent: 560€
- “Fixed costs”: 670€ (includes: electricity, telecommunications, insurances, calculated depreciation of car, fuel, subscriptions, GEZ [broadcasting fee], etc.)
- Variable costs: 550€ (includes: clothing, groceries, leisure, other technical purchases)
(She)
- Additionally with everything around 650€
There are no current loans.
Joint planned expenses therefore amount to 2,430€.
Savings contributions:
In the end, I currently have between 1,500€ and 2,000€ left per month. My variable calculated costs are therefore factored in quite generously, but I prefer to play it safe.
However, the following monthly savings installments/reserves still have to be deducted from this, which I would also like to continue committing to possible financing:
- Vacation 150€
- ETF portfolio 300€
My plan is to save 20,000€ per year including savings installments/reserves.
My planning:
I am now assuming the worst-case scenario. That would be that I, as the sole earner, have to be able to finance the house. A marriage would be necessary here purely for tax advantages.
It is still definitely planned that my girlfriend will work. But if children were to be added, of course, you cannot count on a fixed income.
+3,900€ net income
- 1,000€ “fixed costs”
- 850€ var. costs
= 2,050 surplus I
- 150€ savings rate vacation
- 300€ ETF portfolio
= 1,600€ surplus II
In total, 1,600€ would remain to cover financing, incidental costs and reserves. I would like to repay the financing with 1,000-1,200€ monthly.
I come to the conclusion myself that this will be a tight squeeze, especially if you assume that at some point children will also have to be financed.
So I would like to know from you whether our current plan makes sense.
- Is my calculation plausible?
- Is it advisable to buy a plot already during the course of next year?
- Is this plan financially feasible? If not, how large is the gap we would have to bridge?
- Given the factors: How much house can we actually afford?
Many thanks in advance for your effort and honest opinions!
I have been dealing with the topic of house building/purchasing for a year now and came across this forum through this. I have been reading along here for a while and really like your quite critical assessments.
Basically, I was initially a bit shocked by the prices being asked for on the real estate market, but that is probably the reality.
I also see a property as a long-term investment, as I currently prefer not to invest my available capital solely in stocks & co.
Construction project:
Building/purchasing a single-family home with approx. 150m² + basement and approx. 600m² plot.
In my home community (edge of the Odenwald with approx. 45-60min simple driving distance to the Rhine-Neckar/Main area) a new development area is planned towards the end of the year. The development plan is in progress. We have put our names on a waiting list of interested parties for this. I estimate that the costs for the plot will amount to approx. 100k€.
Basically, an existing property is also an option.
In my possibly optimistic hope, I have imagined a cost framework up to max. 450k€.
General:
He (27) + She (25) in a relationship of several years, unmarried without children. Marriage in the near future is quite conceivable, the desire to have children is also present.
Income and asset situation:
[*
- He (27) net salary 3,300€, from next year 3,400€ (tax class 1), larger salary jumps in the next 4-5 years rather not conceivable
[*]She (25) still studying (planned graduation this year), 450€ part-time income
[LIST]
[*]Due to the current economic situation and the outlook on the job market / my girlfriend’s expectations, I do not initially assume that a high salary is to be expected at the start. With 1,800€ net, she would already be doing well for now.
[*]Equity currently 70k€
Expenditure situation:
I list our cost blocks separately, since there is no joint household account yet. Most of the joint costs are borne by me.
Basically, it should be said that both of us are actually economical (except for a few exceptions). Variable cost blocks are calculated generously.
(He)
- Warm rent: 560€
- “Fixed costs”: 670€ (includes: electricity, telecommunications, insurances, calculated depreciation of car, fuel, subscriptions, GEZ [broadcasting fee], etc.)
- Variable costs: 550€ (includes: clothing, groceries, leisure, other technical purchases)
(She)
- Additionally with everything around 650€
There are no current loans.
Joint planned expenses therefore amount to 2,430€.
Savings contributions:
In the end, I currently have between 1,500€ and 2,000€ left per month. My variable calculated costs are therefore factored in quite generously, but I prefer to play it safe.
However, the following monthly savings installments/reserves still have to be deducted from this, which I would also like to continue committing to possible financing:
- Vacation 150€
- ETF portfolio 300€
My plan is to save 20,000€ per year including savings installments/reserves.
My planning:
I am now assuming the worst-case scenario. That would be that I, as the sole earner, have to be able to finance the house. A marriage would be necessary here purely for tax advantages.
It is still definitely planned that my girlfriend will work. But if children were to be added, of course, you cannot count on a fixed income.
+3,900€ net income
- 1,000€ “fixed costs”
- 850€ var. costs
= 2,050 surplus I
- 150€ savings rate vacation
- 300€ ETF portfolio
= 1,600€ surplus II
In total, 1,600€ would remain to cover financing, incidental costs and reserves. I would like to repay the financing with 1,000-1,200€ monthly.
I come to the conclusion myself that this will be a tight squeeze, especially if you assume that at some point children will also have to be financed.
So I would like to know from you whether our current plan makes sense.
- Is my calculation plausible?
- Is it advisable to buy a plot already during the course of next year?
- Is this plan financially feasible? If not, how large is the gap we would have to bridge?
- Given the factors: How much house can we actually afford?
Many thanks in advance for your effort and honest opinions!