What can we afford without having restless nights...

We (30 and 29 years old, still unmarried) have recently been dealing with the topic of homeownership, as we have settled professionally and want to start thinking about family planning in the next few years.

We both work full-time (tenured secondary school teachers) and currently have a net household income of €6,000 – expected to be €6,100 by the end of the year.

In addition, I have about €500-700 monthly from my self-employed side job. However, I want to consider this amount as a bonus and not include it in my calculations.

Currently, we are keeping a household budget book to have a closer eye on flexible costs/expenses.

Our total fixed costs currently amount to €3,100.00.

This includes major items such as rent (€800, warm), two car loans (€650 – each still running for 3 more years), private health insurance (€530), as well as reserves for vacation (€400), fuel costs (€400), and "smaller" items like car insurance, club memberships, mobile phone, internet, etc.

Added to this are the flexible costs, which I currently estimate at €600 (I hope to get more precise average values through the household book in the future) – so we have expenses of about €3,700, with potential savings to be realized here (especially vacation, elimination of car loans in the foreseeable future).

Overall, at the current time, we come to a disposable income of: €2,300

In addition, there is equity amounting to €105,000

What do we want to do with the money now?

We are looking for a property "off" the Hessian Bergstraße with about 130-150 m2. Whether a new build with solid or prefabricated house, renovation of an older house, or purchase of a ready-to-move-in house – we are open to everything.

After extended research, it is likely that we will have to plan for a purchase price of about €500,000 - 550,000 (incl. ancillary costs), but we have major concerns that we might overburden ourselves (loan amount accordingly: €400,000 - 450,000). Especially considering that family planning is also upcoming in the next few years.

Since we are really still at the beginning of all considerations, I would be very happy if you could give me your opinion – how realistic our (although still very rough) plan is at all.

Thank you in advance for your help and tips.

Best regards

I think ... great conditions. Here is a calculation example that also reduces the payment for 6 years due to parental leave.

With such data, you can simulate the situation on various websites.

And, with the additional income, special repayments would also be possible.

Is it to be expected that you will receive salary increases beyond the usual annual ones?

Basically, if I were you, I would calculate everything with 1 or 2 children. In other words, what do we both earn with 2 children and what do they cost (PKV, childcare, etc.) or income loss due to part-time work.

Then you know your net income, your consumption behavior (which becomes more expensive anyway because of the children) and that should guide your direction.

To sleep peacefully, I would have said max. 350-400k Dalrhen

two car loans (€650 - these each still run for 3 years),

could (especially vacation, elimination of car loans in the foreseeable future.)

Regarding the car; one should be honest with oneself. Even if the current ones are paid off, you still have to save for cars. Cars do not get old forever.

Also because you are budgeting €400 a month for fuel costs. Will the kilometers change because of the house?

Vacation: especially with children, that is always a topic.

The €2300 includes cold rent, or would that be on top?

If it's worth the fun to you, I don't see a big problem there now. Apparently, you have your expense situation under control. Your wife will probably have to go back to part-time work after a year. From the "still unmarried" I conclude that you still plan to get married. Then you will at least get tax class 3 + allowances for being married + allowances for children.

My wife is also a civil servant, and with the kids in the luxury class private health insurance I think it costs about ~45€ each.

From the "still unmarried" I conclude that you still plan to get married. Then you will at least get tax class 3

With two senior teachers it hardly makes sense to switch to 3/5. Unless one drastically reduces hours. However, in this constellation it is just as conceivable that, if necessary because of children, both parents reduce equally. These are the advantages of civil servant status.