What is possible? :) (another one)

Hello,

from a purely financial perspective, I have to counteract here. What kind of panic is felt here. If NO ONE were to finance YOU, then what?? Banks go up to 100, sometimes 105 or even 110% of the loan-to-value ratio. We have a 50% loan-to-value here, 300k equity, and a savings rate of €3500 per month. Some people only dream of earning that much.

If you are aware that the woman could go on parental leave (there is parental allowance) and then maybe work part-time afterwards and you still have a savings rate, it is feasible! Daycare, nursery, etc., can be deducted, there is spouse splitting, and part-time work is also cushioned. Especially since you are renting now (?) Besides the €3,500 savings, the warm rent that is saved will also certainly come into play.

From me, thumbs up!

Can understand your statement. As I said, I have only been working in the industry for a short time. Just the switch to a 40-hour week amounts to €11k/year. Without moving up a grade. I don't want to go into too much detail here, it's not a salary thread.

I suspect your pay has something to do with the ERA collective agreement... ;) Engineer?

With the current salary, financing €370k is not optimal - but there is still some time left.

Yes, it would probably work somehow... But I assume you want to make sure that in the worst case you don’t have a big problem. With €300k equity and a solid income that is also possible. You just shouldn’t follow the law of the maximum possible house but rather use the money to pay off the house as quickly and securely as possible.

If the house gets cheaper, I am totally satisfied as well. Apparently, I need to know more details about the architecture.

It definitely makes sense to have a conversation with an architect who appeals to you.

Just as a rough guide: We are currently building a house with >300m² living space, a masonry double garage and usable space in the basement, and are currently aiming for €560k as construction costs including incidental costs... excluding landscaping, plot, kitchen etc...

So if you spend ~€100k on a plot, you should be able to get a nice house in the range of 170-200m² for <€400k...

Hello,

from a purely financial perspective, I have to counteract here. What kind of panic is felt here. What if THEY wouldn’t finance you then?? The banks go up to 100, partly 105 or even 110% of the loan value. We have a 50% loan here, 300k equity and a savings rate of €3500 per month. Some people only dream of earning that much.

If you are aware that the woman could go on parental leave (there is parental allowance) and afterwards possibly take part-time work and you still have a savings rate, it is feasible! Daycare, nursery, etc., can be deducted, there is spouse splitting, even part-time work is cushioned. Especially since you are currently renting (?) In addition to the €3,500 saved, the warm rent that is saved also certainly comes into play.

From me, thumbs up!

It has already been said several times: the issue is about financing a loan of €350,000 and more with only one salary currently at €3,200. If the salary increases, it looks different again. And the woman might also want to stay at home longer with the children. ;-)

By the way, what is wrong: the warm rent is NEVER saved, if anything, only the cold rent. You still have additional costs in the house, and partly – because the house is simply bigger than the apartment – even higher additional costs than before. That eats up part of the saved cold rent again.

Best regards
Goldbeere

It has already been said several times: it's about financing a loan of 350,000 euros or more with only one salary currently at 3,200.00 euros. If the salary increases, the situation looks different again. And the woman might also want to stay at home longer with the children. ;-)

What is wrong by the way: the warm rent is NEVER saved, if anything only the cold rent. You also have additional costs in the house and partly – because the house is simply larger than the apartment – even higher ancillary costs than before. That already eats up part of the saved cold rent again.

Regards
Goldbeere

For the bank, 3,200 monthly would also be enough in this constellation. No, you save the warm rent. If I save 3,500 + pay 1,000 for warm rent, my room for maneuver is 4,500 for the installment and the house's ancillary costs. You can twist and turn it as you like, everyone should be aware that you have higher ancillary costs with ownership. The thread starter will surely know that himself :cool:

No, you save the warm rent. If I save 3500 + pay 1000 warm, my scope is 4,500 for the installment and the ancillary costs of the house. You can twist and turn it as you like, everyone should be aware that you have higher ancillary costs for ownership. The thread starter will surely know this himself :cool:

The problem is that many compare the warm rent with the installment, and that is wrong. This misconception is sometimes even promoted in the media under the motto "Why pay rent anymore? Buy a house for the same money." In such a comparison, of course, only the cold rent may be used.

It all depends on the calculation method.
If I consider the installment + ancillary costs as future burden, then I save the warm rent.
If I only consider the installment as burden, then I save the cold rent.
(of course, assuming the same ancillary costs from old/new apartment/house to new apartment/house)

I am sure Otto.Motor knows what he is doing. Apparently, he can handle money, otherwise he wouldn’t have such a high savings rate and such equity. Still, and I am sure about this, financing that high needs to be well thought out. 600 or 700,000 € is not just nothing. Although in Bavaria, depending on the location, there isn’t much you can get for that either.

Friends of ours bought a terraced middle house directly in Karlsruhe and paid a solid 500,000 € for it. The living area is 110 sqm, garden another 20 sqm. He could have easily built bigger, but didn’t want to because of proportionality. At some point, you have to set a limit for yourself if the financial situation doesn’t already do that.

I also work in an industry where I can choose my salary, depending on what I am willing to perform. If I go for it, accept a weekend relationship, and see my child only from Saturday until Sunday noon, I can easily get double my current net income. Plenty of headhunters bother me every week on the phone. (To the great displeasure of my boss, as they cheekily call me at the company and get put through :))

Otto.Motor now just has to take one step further. I would say an architect should plan something for 500,000 €. It will always get more expensive in the end, but not put all cards on the table right at the beginning. Then you have to look at what you get for it. If it’s not enough, you have to decide: build smaller or increase the budget.