ᐅ Own Property from the Start? A Beginner Needs Straight Talk...
Created on: 20 Aug 2016 18:35
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Titus72
Hello everyone,
I’m new to this forum and just want to say a friendly HELLO to all.
I already have a fundamental question: Does my dream of owning a home fit into reality from the start? I feel like I haven’t really accepted the price reality yet and am still stuck in the 80s/90s...
But what is this actually about? Well, for years I considered buying a property financially unwise. So, I’m still renting. However, I want to improve my living quality and have been looking for a new apartment for a long time (I live in Braunschweig). And what can I say: I’m frankly shocked by the rent prices in this area. What my wife and I would like doesn’t come under €1200 cold rent, with prices trending higher...
So, like many these days, I started thinking about buying. Naturally, the question arises: what can I afford and what do I want? And here, I think I might still be wearing rose-colored glasses!
About me: male, married, children planned soon
Net income about €5200–5400 (depending on the number of shifts) working 60–70 hours a week
(in the coming years, the salary will increase due to experience and step raises), no bonuses or similar, no Christmas bonus, etc.
My fixed monthly costs are around €3800
This includes a monthly savings rate of €1400
Current warm rent including electricity is €830
Still need to consider monthly living expenses like groceries, etc.
My own equity currently amounts to about €80,000, but it’s tied up and not currently freely available, so let’s say my equity = €0, oops.
Looking at property prices in our region (Braunschweig), I’d have to budget around €350,000–450,000 for an average single-family home. And I always wonder: who can afford this immediately?? I know I’m lucky to be among the higher earners. And when I see on radio, film, or TV the kind of houses some people live in (who earn significantly less than I do), I’m amazed. How do they manage it: great house, nice car, good clothes, etc.?
To be clear: this is not envy, I truly wish everyone well. My question is always: why can’t I afford it? Where am I miscalculating, where is my mental block? Apart from a car loan, I have no debts and don’t live extravagantly...
So, who among you experienced folks can help me see things clearly or take off my rose-colored glasses?
Best regards,
Titus72
I’m new to this forum and just want to say a friendly HELLO to all.
I already have a fundamental question: Does my dream of owning a home fit into reality from the start? I feel like I haven’t really accepted the price reality yet and am still stuck in the 80s/90s...
But what is this actually about? Well, for years I considered buying a property financially unwise. So, I’m still renting. However, I want to improve my living quality and have been looking for a new apartment for a long time (I live in Braunschweig). And what can I say: I’m frankly shocked by the rent prices in this area. What my wife and I would like doesn’t come under €1200 cold rent, with prices trending higher...
So, like many these days, I started thinking about buying. Naturally, the question arises: what can I afford and what do I want? And here, I think I might still be wearing rose-colored glasses!
About me: male, married, children planned soon
Net income about €5200–5400 (depending on the number of shifts) working 60–70 hours a week
(in the coming years, the salary will increase due to experience and step raises), no bonuses or similar, no Christmas bonus, etc.
My fixed monthly costs are around €3800
This includes a monthly savings rate of €1400
Current warm rent including electricity is €830
Still need to consider monthly living expenses like groceries, etc.
My own equity currently amounts to about €80,000, but it’s tied up and not currently freely available, so let’s say my equity = €0, oops.
Looking at property prices in our region (Braunschweig), I’d have to budget around €350,000–450,000 for an average single-family home. And I always wonder: who can afford this immediately?? I know I’m lucky to be among the higher earners. And when I see on radio, film, or TV the kind of houses some people live in (who earn significantly less than I do), I’m amazed. How do they manage it: great house, nice car, good clothes, etc.?
To be clear: this is not envy, I truly wish everyone well. My question is always: why can’t I afford it? Where am I miscalculating, where is my mental block? Apart from a car loan, I have no debts and don’t live extravagantly...
So, who among you experienced folks can help me see things clearly or take off my rose-colored glasses?
Best regards,
Titus72
Evolith schrieb:
And for that, I’m allowed to put the pen down after 7.5 hours. You’re still using a pen? You should be upgrading more than just your salary over there :P *JK*
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HilfeHilfe22 Aug 2016 12:39@Steffen80
Sometimes your statements are detached from reality. Earning a net income of 3,200 (about 5,700 USD) per month is more than decent for a regular job. 5,200 (about 9,300 USD) with significant overtime is excellent.
Also, the fixed-rate periods of 15, 20, or 26 years — these bank customers are smart and play it safe. According to building regulations, they can still terminate the loan after 10.5 years.
Sometimes your statements are detached from reality. Earning a net income of 3,200 (about 5,700 USD) per month is more than decent for a regular job. 5,200 (about 9,300 USD) with significant overtime is excellent.
Also, the fixed-rate periods of 15, 20, or 26 years — these bank customers are smart and play it safe. According to building regulations, they can still terminate the loan after 10.5 years.
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Sebastian7922 Aug 2016 12:46Typical Steffen
BTW: This rather shows how poorly doctors are paid – so much responsibility for so little money. I earn, or rather get paid, more per hour but significantly less per month. However, I also have considerably more free time.
BTW: This rather shows how poorly doctors are paid – so much responsibility for so little money. I earn, or rather get paid, more per hour but significantly less per month. However, I also have considerably more free time.
HilfeHilfe schrieb:
Sometimes your statements are unrealistic. What do you expect from someone whose salary, housing costs, ... cause them to lose touch with normal amounts? It’s similar to how you sometimes lose perspective on €100 or €1,000 (about $110 or $1,100) during a house build.
But back to the topic: If the salary is fairly secure and remains at that level, I agree with Steffen that €500,000 to €600,000 (about $550,000 to $660,000) is definitely doable. We are in a similar situation and it has worked well so far, by the way, with a large portion secured over 30 years.
Uwe82 schrieb:
You still use a pen? You should be upgrading more than your salary where you are *SCNR* Oh yes! You should see my wall. It’s covered with adhesive sheets so I can always have a quick overview of the projects. And all around me are scribbled notes for my brainstorming ideas.
The rest runs on bits and bytes.
But enough off-topic.