With the request for evaluation - Home financing

Hello Community,

Facts:
Purchase of an existing property
Plot: 600 m²
Living area: 192 m²
Type of heating: Gas (ground floor underfloor heating, upper floor radiators, separate heating circuits)
Renovation needs: not necessary except usual tasks for moving (laminate, painting)
Year built: 1999

Special features: Groundwater well for irrigation of green areas, photovoltaic system with a yield of 5000-7000€ per year (18 years remaining on contract with EON, solar panels are from Kyocera Inv. – value of the system approx. 50,000, facing south)

Price excl. additional costs: 285,000 €
Acquisition costs: approx. 40,000 €
Estimated basic supply costs: 350-380 € /monthly

Equity ratio / Income:
Persons: 2
No children
Woman (45) net: 1650 € length of employment contract more than 10 years
Man (44) net: 1790 € length of employment contract more than 10 years
Equity after deduction of acquisition costs (real estate transfer tax, notary, land register, broker): approx. 85,000 € (possibly more)

Goal:
To be debt-free at retirement if possible (23-25 years), or to have a low burden

Thanks for your help

Regards
Marko

Well, what is there much to say about that?

Good loan-to-value ratio, income is okay – a sustainable financing should be feasible with that. Term of 20-25 years could also be possible.

How high can the rate for the financing be?

Just get some offers (house bank, broker, ...).

Currently we are at €750 without taking into account possible profits from the photovoltaic system; if we include the €350, it is €1100, but that would already be the limit where I would still have a clear conscience in the calculation. No one knows how high the surcharge remuneration will be in 19 years :/

We have also calculated the ancillary costs conservatively:

Gas €120
Water/sewage €120
Electricity €90

and the rest of the small stuff, of course.

5-7 THOUSAND EUR revenue from photovoltaics?

How large is the system in sqm? I imagine it to be "interesting" at least on a normal single-family house. The whole roof must be covered.

So 50 € per month for the "remaining small stuff" will probably not be enough. Property tax and insurance? Reserves also need to be built up for repairs.

But as an example of how it could look:

The Ing-Diba has its conditions online, for 15 years fixed interest you would have to pay 3.1% interest (rather expensive).

With a monthly rate of 750 €, you would have an initial repayment of 1.4%. Added to that annual special repayments of 4,200 € (350 € x 12 - photovoltaic) results in a remaining debt of 68 thousand € after 15 years. This should be manageable with the current rate, plus three "guaranteed" special repayments from the photovoltaic system. About 10 years and you’re done.

But a photovoltaic system also causes costs, right? Please consider this as well.

Just had a phone call with the owner, of course the realtor slightly embellished things so the system generates between 3000-4000€, but even that is a nice extra income. The photovoltaic system actually covers an entire half of the roof.

Our breakdown of the additional costs:

Gas/Hot water 110 €

Drinking/Sewage water 120 €

Electricity 80 €

Garbage 9 €

Chimney sweep 8 €

Gas boiler 12.50 €

Street cleaning still open

Property tax 12.50 [TD="align: right"]21.17 € [TD="align: right"]25.33 € [TD="align: right"]42.00 € Insurance building insurance. Insurance household contents Insurance Anything missing?

Sorry the formatting is a bit "messed up"

Some payments here are charged quarterly or yearly, I then calculated them down to a monthly amount to build up reserves, we plan to set up an account for this.

How high can the costs for a photovoltaic system be?