Would you make this financing?

Hello everyone,

in the hope of meeting one or the other experienced person here who can somewhat assess our financial situation, I would like to ask you whether it makes sense in our situation to take the risk but also the wishful thinking of building a house.

[*]We are 26 and 28 years old, still childless, but soon planning for two


[*]Equity minus reserves for a new car (which is coming up soon), furniture, parental leave compensation and emergency reserves leaves 50,000 € for the house construction


[*]Our biggest drawback is that we (income is secure in the long term) do not earn very much: He 1,500 € net, She 1,700 € net (with children through reduced working hours approx. 1,200 € + 380 € child benefit = She 1,580 € makes in total in the future just over 3,000 €

According to initial offers, the total cost for our desired house (including land and all incidental costs) will be around 330,000 €. Minus equity, there remains a financing gap of about 280,000 € which would have to be financed.

We have calculated that it would be quite possible for us to spend about 900 euros for the loan and 300 € for incidental costs + insurance with children.

Initial loan offers also make this possible for us to this extent.
Until retirement, we have calculated well, there are still 35 years, which the loan term is also calculated on.

Due to our comparatively low rates, depending on the term, we still come to an outstanding debt of 190 thousand after 10 years, 160 thousand after 15 years, 140 thousand after 20 years.

We are also afraid that interest rates will rise again in a few years (they will hardly get any lower) and that we will overextend ourselves due to the high outstanding debt and the low incomes.
Do you find the outstanding debt too high in relation to the salary?

Now my question to you: would you fulfill the wish of owning your home in our case (advantage still very long time until retirement) or would that be too high a risk for you due to the low salaries?

Please leave the incalculable risk of divorce, etc., out of the equation, no one can plan for such things.

I really hope that one or the other of you will take a look at our case study calmly and still have time to answer us here. It would be a great help, we are still very uncertain about making this life decision (regarding financing).

Best regards Nescool

I would first wait and see how things look when the children are there. Whether the re-entry will work out then and how high the income actually is. In my opinion, a little over 3000 is not enough for a family of four plus house financing, simply because a thousand could already be spent just on daycare costs and other items (second car?). Since March 21, banks also calculate differently. Since we just had the follow-up financing, we have quite recent information on how they calculate, for example, the bank only calculates with one income to see if the rate can still be borne if one income is lost. For you, that would be 1500 euros for a 3.5-person family (banks calculate with the statistical 1.5 children if none are present). In addition, it must be paid off by retirement; otherwise, pension information is requested to see if the pension will still be sufficient for the rates. This is, of course, not in the construction calculators. And if something is added to the total costs of 330,000 (floor coverings? kitchen? garden?). Interest rates will certainly not rise significantly in the next few years, rather they will stay like this with a few fluctuations; for high interest rates like 15 years ago, a completely different economic situation would have to arise, but the risk of going under with tight financing is quite significant. For us, the amounts are similar, just without children (and none are coming), and I find it just about manageable (but WITHOUT vacation, eating out, cinema... we don’t do any of that!).

Hello, with 2 children €1580 including child benefit as part-time income is ok, BUT have you informed yourselves about what children cost? The biggest expenses are childcare, food, clothing, vacation. Child benefit is nowhere near enough... We have again bought summer clothes, shoes, etc. Both boys cost around €300... A couple of T-shirts, pants, shoes, sandals. A house price including land in BW at €330k also seems more like a dream to me... Are leaps expected through further training, etc.?

280 T € at 5% is 1150€ per month. I would think very carefully about anything below that... then suddenly there is a lot left over at the end of the fixed interest period...

I would look for an affordable RH or semi-detached house in the existing stock. That doesn't exceed the budget as much and results in an affordable installment.

You are still relatively young, so I suggest finishing family planning first.

HilfeHilfe has already mentioned that childcare can incur high costs. I know cases where the costs for daycare and a second car exceed the salary of a part-time job (tax class 5). Depending on the place of residence, daycare places are still in short supply or not even designed for 45 hours per week.

First see if it all works out; otherwise, with your income, having children would be way too risky for me. Maybe the main earner's income will increase by then as well.