Will this work or are we just dreaming about buying a house?

Evening everyone,

My wife and I have been looking for a house for some time now. We have one in view again, but my wife became pregnant earlier than planned and now I’m getting worried about the financing. Just a quick note on our ages: I’m 30, she will be 29.

Currently, we have a net income of €4500. I have €2700 (chemical engineer tariff) and she €1800 (educator), both SK4.
The due date is August 2019, move-in and payment due in November 2019, notary also 2019.
With the child, we would switch to 3/5, meaning €3160 + €1100 + €210 child allowance = 4280€ net.
My next pay raise is due in 2020 to 5xxx gross.

Our current expenses are (food, cars, mobile, sports, clothes, disability insurance) €964 + €200 (miscellaneous).
For the child I currently plan with €300 monthly expenses.
For the house I roughly planned with €500 (electricity, water, chimney sweep, etc.).
Repayment €1400.
In the end, there would be €855 left over.
Theoretically, the child construction allowance (Baukindergeld) for 10 years €100/month, but I’m not planning on that for now.

Each of us has good €10,000 in reserves.

Data on the house:
Purchase price €349,000
Equity €65,000
Purchase from private seller
Built in 2014
114m^2 living space
50m^2 basement
297m^2 plot
Underfloor heating in almost all rooms.
No renovations necessary, a friend who is a civil engineer and architect sees no defects. We’d just have to paint once. Kitchen will be taken over for free.

Am I just panicking now because my usual savings rate is shrinking sharply or am I overlooking possible costs or drops?

Many thanks in advance for feedback
Regards
Andreas

You will need to present the income a bit more systematically. Once for the here and now for the bank, and once the future with a child for you. You are somehow mixing up present and future. Right now you have 4500€ net. Equity is 65k, what are the respective 10k reserves? Are they additional or part of the equity? If you go to the bank in the current state, that is unproblematic. For you, of course, you then have to calculate how it looks in the future with a child. Does your wife work full-time starting at birth or where do the 1100€ come from? Overall, the whole thing sounds doable, but please tidy up the finances for us again.

Sure, it will be tight but you have good jobs. Is there an alternative? What do you pay in rent? Will a second child come and you need the house? Then [mschen]

I assume the 1100 is the parental allowance (66% of the previous salary)? A small tip: switch quickly to 3/5 now so that your wife's net income increases. Then her assessment basis for the parental allowance is higher.

You are somehow mixing up present and future. You currently have 4500€ net. Equity is 65k, what are the 10k reserves each? Additional or part of the equity?

Does your wife work full-time from birth or where do the 1100€ come from? Overall, the whole thing sounds doable, but please clarify the finances for us again.

Pardon.

Exactly 4500€ net at the moment. However, since we will repay with different circumstances, I wanted to calculate with these data. Without a child, I wouldn’t worry.

The almost 1100€ come from 67% parental allowance in the first year. I myself will not take parental leave. 65k are really intended for the home. The respective 10k as reserves for whatever, so extra again.

Sure, it will be tight but you have good jobs. Is there an alternative? What do you pay for rent? Will a second child come and you need the house? Then do it

The alternative is still to rent, possibly in a bigger apartment.
Cold rent is €600; €200 for heating, janitor, Unitymedia.
Electricity consumption in recent years was between 1800kWh and 1950kWh with instant water heaters in the shower and kitchen.
No further children are planned.

A little tip: Switch quickly now to tax classes 3/5 so that your wife’s net salary increases. Then her assessment basis for parental allowance is higher.

So she tax class 3 and I 5? We would have to see if that works, as she was first released until the results of the immune test.