What do you think about the financing? + I have a huge problem

For comparison: We are financing 230,000 euros over 21 years with a monthly payment of around 1,200 euros on an income of 4,700-5,000 euros per month. Together with the monthly additional costs such as water, gas, electricity, garbage collection, property tax, etc., I had concerns for a long time whether this would be okay.

I believe that with your income (3,500-3,800 EUR available after financing) you cannot compare yourselves to an average earner. Only very few earn well over 100,000 euros gross per year!!! You can still live a life without restrictions. Nevertheless, I also think the bank advisor made a good decision if he does not want to grant any additional loans. The financing is already collapsing if something unforeseen happens (second child, job loss). A 900 euro payment + additional costs + reserves is already tough with that income. Perhaps a cheaper condominium is more suitable for the beginning.

...We are financing 230,000 euros over 21 years with a monthly payment of around 1,200 euros on an income of 4,700-5,000 euros per month. Together with the monthly additional costs such as water, gas, electricity, waste disposal, property tax, etc., I had long concerns about whether this would be okay. ...

I think it is good that Kate32 expressed her concerns. Even if she does not have to have any mathematically, it shows that there are builders who want to secure themselves and weigh options. We too have been considering a loan just over 200,000 with a net monthly income of about 4,000. Including the ground lease, we are just under 1,000 euros. On top of that come the consumption costs, without children. We are now at an age where you want to live and not just save. Everything is secured (so we hope), but the repayment should not significantly affect our lives, i.e., cause worries or restrict us. Certainly, Kate32 as well as we can finance more, but at what restrictions? These exist with a net income of 2,600 euros, if not even a daily factor in the existential question.

I would also first look for an apartment, then you can repay monthly and build up some equity since the rent is completely gone. In 5-10 years things can look different (new job, etc....) Don’t give up the dream of a house but try not to force the dream. Otherwise, things can go wrong quickly... and that’s not worth a house.

I wouldn’t buy an apartment either if it’s supposed to be sold again in 5-10 years. The risk of making high losses would be too great for me.

Save as much as possible and if in a few years all the 10-year fixed interest periods from the current low-interest phase expire, strike! A lot of young existing properties will come onto the market then ...

Save what you can and when in a few years the entire batch of 10-year fixed interest periods from the current low-interest phase expire, strike! There will be quite a few young existing properties coming onto the market ...

Also a good alternative There will certainly be quite a few coming onto the market. When I see how some are financing *shakes head*

Hello, surely our income is okay, I don't really perceive it as a lot - apart from that, it is unfortunately not as simple as it might seem. We both earn about the same, i.e. if one earner drops out, depending on the situation, almost half of the income disappears... In addition, I am simply afraid of planning a loan over 20-30 years (in our case about 21 years) and then realizing that you miscalculated. I may be overly cautious, but my house is not my everything - there is also a life outside that costs money.... Sure, at the beginning the euphoria about the new home predominates, but what if after 2-3 years that has "worn off," the house has become normal, and you finally just want to go on a nice vacation with the whole family and don't have to calculate with every pair of shoes whether they fit into the budget (nightmare for me!). It is a very individual limit that you have to set for yourself, as has been written many times above - honestly, I can hardly relate to the bank's flat rate... I would look for a cheaper property, even if it is arduous and you think you have already invested so much in this property and time etc. - but as I said, in the end you have to consider yourself to what extent you want and can restrict yourself. Best regards and good luck with your project, no matter how you decide!

p.s. for me, this also includes the additional costs, which somehow always turn out to be higher for us than for other people. I manage to reach 220 euros per month in electricity costs in an approx. 80sqm rental apartment. You should also carefully calculate what additional costs, such as property tax, waste disposal, etc., to expect in the new property...

Kate