Used property, how to finance?

Hello everyone!

My first topic is: How should I finance a property? My wife and I (both about 32) have one child and currently rent, but we want to change that.

The plan is to buy a house in the rural Ruhr area, a large plot, space in the house for 2 more children (planned). We have already found many offers, but we have great respect for such financing.

My job: doctor in a hospital, net income between 4.5 and 5.5 thousand net, rent including utilities previously 1300 euros without problems. No additional income. Career advancement is certain, but I don’t know exactly how much a salary increase will be; it will probably be 6.5 thousand net. My wife has no income.

Downside: so far no equity, because we enjoyed many trips and a good life. However, we could save until we realize our real estate dreams; probably 20-30 thousand should be possible.

We are not in a hurry, but would very much like to benefit from your experience and expertise.

Many thanks for tips, questions, and ideas!!!

Addition in the evening: We have seen several properties and so far find that offers between 200 and 350 thousand are interesting; below that, we have not yet discovered anything according to our expectations. My type, regarding finances: cautious, very focused on security and transparency.

Save up a little equity first. Then you will see if you can manage with the rate and the other things. Then the situation will probably already look much better. If saving doesn’t work, it will also be difficult with the property. Are you also sure that you will always be there?

From a banking perspective, you would certainly receive financing. You have an extremely secure job and the salary is very good and can basically only go up (as long as you stay in the hospital).

But: the fact that with this salary, even though you have traveled a lot and live well, you could not save any equity at all is rather "unusual." Accordingly, I agree with Koempy. Save some equity or simulate a higher burden over a certain period to see if you can really scale back your "lifestyle" without any problems. Because you have to, at least a little. The €1,300 you are currently paying warm will not be enough for the installments, additional costs + reserves for renovations/repairs, assuming a loan amount of €300-350k.

-> PS: My contribution has now overlapped with HilfeHilfe. I can only agree with his explanations.

Hello everyone and thank you very much for the quick, competent answers!

Our non-existent equity resulted from several factors. First of all, I have only been earning "well" for about 2 years (since I became a specialist and was allowed to do all kinds of shifts, helicopter, emergency doctor, and so on) and I have always liked to travel. After the birth of our child, we took an almost 4-month trip and we are still mentally benefiting from this (unforgettable and important) experience... and of course, we have to digest it financially :-)

Our other standard of living is average, a small car, cooking for ourselves, etc., all completely down to earth.

Through a change of job, I became a senior attending physician, which certainly involves an "upgrade" to a chief physician position. The timing is still unknown, but presumably this will have happened within the next 2 years.

I would be happy if you could give me fundamental tips once again.

And one special question: A really interesting property nearby includes a [Nießbrauchrecht] of an elderly lady, what exactly does that mean? I have read quite a bit online, but I would like to benefit from your experience.

THANK YOU!!!

One more addition: My wife does not work because of the child and further family planning, so there definitely will be no additional income in the next 6 years. Do I want to live in the house for a long time (30 years)? Yes, at the moment that is extremely certain.

Thank you for further help!