Too old for a home of your own?

  • Erstellt am 2014-04-08 04:09:24

Bauexperte

2014-04-08 10:47:33
  • #1
Good day Chris,

Your very first steps should lead you to a banker you trust and an independent mortgage broker; insurance companies are also a good point of contact these days.

Only when you know how much money you can put in your hand is a serious decision pro new construction or renovation of an existing property possible. Since you indicated Cologne as your place of origin, you can already familiarize yourself with the prices for building land in the meantime. Unless you want to build out in the countryside, you will be quite surprised at the prices per square meter of building land. The same applies to the existing offers for existing properties ;)

Rhenish greetings
 

Der Da

2014-04-08 11:14:26
  • #2
My goodness, when I read your texts, I feel ancient at 34 years old. We both studied for a long time, then saved some money and built a house at 33. And it works great. In 20 years the house will belong to us, and we can easily save another 10-15 years for retirement. Having children in the mid/early 30s is not an issue, at least biologically. Almost everyone in our circle of friends has only just now had their children. We also want to have 1-2 more :)

Your salary is also quite good, something can be done with that. But it is still somewhat dependent on equity. Save for another 1-3 years, then the world looks rosier, and maybe the child will come before that, then you can see how you manage.
 

gimli

2014-04-09 09:28:46
  • #3
As the previous speakers have already written, your income is actually not bad.

At the moment, due to parental allowance, we have a similar income and also want to build soon.

The biggest uncertainty factor for you is certainly the desire to have children. You write that your equity would decrease by about 700-800 euros. We just had a baby, and I can tell you that your calculation does not add up. I think you simply compared the parental allowance against your wife's income. But you have to consider that with a child, significant additional costs will come to you (stroller, Maxi Cosi, changing table, clothes, diapers, food, and later childcare). I would on average rather reckon with well over 1000 euros (i.e., income loss and costs).

Furthermore, you urgently need equity capital, at least enough to cover incidental construction costs, as these are usually not financed, and if they are, then under very poor conditions. We currently have 50,000 euros in equity and want to build for about 450,000 euros; we will probably also prefer to save a bit more.

I think if you want to wait a few more years, a home savings contract can be worthwhile. This way, you can secure a loan at the currently very low interest rates for part of the financing today and at the same time build equity. However, it is important to compare carefully here; a good guide is the Internet or the magazine Finanztest, etc. But this really only makes sense if you can wait another 7-10 years to build.
 

Der Da

2014-04-09 11:28:13
  • #4
We are just past the parental allowance.... 1400 € was given to my wife. Earnings from the new 50% position and tax class 5 declaration amount to 1200 €. That would be great in itself, but childcare costs about 500 € monthly for 4 days a week, she now needs a ticket for public transport, or in the worst case, a second car. Our little one is now 16 months old.... and the demands are increasing... the shoes are constantly too small, and children's shoes cost a fortune :) A sandbox has to be built, etc. etc.
My wife's salary basically goes entirely on her, because she also has to eat lunch at the company, and for our little man. A little remains, but nothing I would count on.
In addition, there is the heavy tax back payment when one has taken 12-14 months of parental leave/allowance in one year. In our case, the claim is almost 3500 € repayment.
 

Crusoe

2014-04-10 10:58:35
  • #5


I have already thought about these costs too. A friend of mine accidentally became a father a few months ago, and the costs seem considerable... If the financial loss revolves around 1000€ (or 1200€), that might still be manageable. At the moment, thanks to my clumsiness, we only have 3000€ per month available. We live well, but it could be better. Unexpected costs in the four-figure euro range could not be managed without using the equity... And if the child then gets sick, spends 2 weeks in the hospital, and I have to pay upfront (because privately insured, no idea if there is a limit), then it looks very grim...



What about the “incidental construction costs”? These mysterious online loan calculators ask for the purchase price of the property and then for the equity. And what the calculator outputs as a loan is the difference between purchase price and equity. The incidental construction costs are still missing there. Do I have to withhold equity from the bank so that I can cover the incidental construction costs myself, or how does that work? I was told once that you need at least 1/3 of the purchase price as equity so that you don’t pay yourself sick. Do you see it that way too and want to save up 150,000€ equity, or are you aiming lower?



I do think that we can still wait. I will look for an independent financial advisor and ask them. I don’t think much of advice on the internet (not from private individuals in a forum), God knows who sponsors those... I have someone from “Swiss Life Select” at hand. Does anyone have experience with this company? I get along very well with the person, but as is well known, friendship ends when money starts.



I have already had brief acquaintance with such extensive costs. My friend, the accidental father, received 200 diapers (Pampers) and two bodysuits (full-body ones) from me. So for the child, not for him. I still considered the 40€ for the diapers reasonable. But 20€ per bodysuit seemed harsh. They probably only fit for 1-2 months (if at all) :confused:. But the real kicker was the strollers... There was actually a stroller for 900€ at "Babies'R'Us" (and that wasn’t a stroller for ten babies).



Excuse me? How does that work? Can’t the parental allowance be reduced accordingly so you’re not hit so hard by something like that? You would have to take out a loan for the tax back payment.

But I have already become acquainted with something like that... Thanks to the civil servant burden law (or was it called citizen relief law?), I have to pay back about 300€ in taxes every year. And that during my training.

This is not meant to come across as funny. But why on earth should I put up with something like children if you suffer such extreme disadvantages as a result? And how on earth do people who are permanently dependent on Hartz IV manage? They have children too. I don’t have any ALG / Hartz IV recipients in my circle of acquaintances I can ask.

I can live with the high equity for the home if it still takes 7-10 years, fine. But the significant disadvantages that a child brings. I have to ask my girlfriend if maybe a dog would do. Maybe it’s just a fashion trend anyway, since right now almost all women at my girlfriend’s work are pregnant / have just had children (and adopted).
 

milkie

2014-04-10 11:25:44
  • #6
Children and a fashion trend? In my opinion, children belong to the cycle of life (otherwise none of us would be here anymore!). My life is enriched by my children and I do not feel disadvantaged or restricted in any way! Life adjustment, yes – but one is actually aware of that. My life did not get worse because of it! However, with your comments on this, it is really questionable whether you are suited as a father. But that is off topic.

One third of the total construction cost (including land, ancillary construction costs, and furnishings) should actually be saved at least.

For unforeseen events, a part of the equity should be kept back AND reserves should also be built up during the financing. That means not only calculating the installment, ancillary costs, and living expenses but also a not too small savings rate!

milkie :)
 

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