Hello everyone,
I have been a silent reader here for a while. I originally wanted to ask these questions in a thread where people post quick questions and different users respond – as I’ve often seen in other forums – but unfortunately, I couldn’t find one. So, I finally decided to start my own thread.
A brief introduction about us.
I am 25 years old and have been with my company for 6 years (including my training period). I work for the city and am basically a civil servant. That means I always get some paperwork for insurance discounts and other typical benefits. It’s not an official civil servant status, but close enough in terms of job security.
My girlfriend is 22, has been working for a small to medium-sized enterprise for one year, and is doing an evening degree at the same time.
We have been a couple for nearly 6 years, and naturally, buying a house within the next few years is not off the table. We definitely do not plan to have children in the near future.
I am still a complete beginner in this field and would simply like to hear some opinions regarding our plans.
First, I have to say that our spending habits are far from ideal...
I have a net income of at least 2500€ per month (tax class 1). In addition, I receive Sunday work pay, overtime payments, on-call pay (about 200€ per month), a company car (only for commuting to and from work), and a total of 14 monthly salaries per year.
However, I only consider these extras as a buffer and do not include them in our budgeting calculations.
She has a fixed net income of 1700€ (tax class 1), which will increase at the end of the year if she completes her degree successfully.
So, we have a minimum of 4200€ available. As it stands now, aside from saving 250€ per month, everything else is basically spent. Our expenses break down as follows:
Rent: 1000€
Electricity: 80€
Internet: 50€
Car (including insurance and tax): 450€
Insurance, mobile contracts, etc.: 150€
Loan repayment (which will end in 2 months): 250€
Public transportation ticket: 100€
Savings: 250€
Since we don’t keep a detailed household budget yet, I can’t give exact figures for groceries, clothing, etc. We just buy what we need at the moment. With 1900€/month (plus my additional allowances/salaries), our annual holidays are also paid for. The car is unfortunately one of the worst financial decisions I have made, as it is hardly used except on weekends. This will be minimized when we buy a house, but I’ll leave it as it is for now.
As you can see, the 1000€ rent is a major burden and that’s exactly what bothers us most.
Currently, we are looking at properties in the area, and decent houses/semi-detached houses are around 350,000 to 450,000€ range.
No one can say where prices will be in the next few years, but this is the current situation. I have looked even less into building a house than buying one, in case anyone wants to suggest that option.
Is buying a house generally more expensive than building one?
How much mortgage payment would you recommend with this income?
I understand it probably varies a lot, but can you give a rough idea of additional monthly costs, like waste collection, home insurance, etc.? Is there a place where I can look this up for my location?
How much do you put aside monthly for home renovations?
The last two questions are the most important to me, because our spending habits are a factor – one person can do 1000€, but another only 800€.
We have not been to a bank yet. However, I once had an appointment at my house bank for the car financing, and I was “offered” roughly 750,000€ (with 60,000€ equity) for a house on the side. Since then I don’t take that bank seriously and would rather ask here first. We do have equity, but I can’t give exact amounts because there are five different contracts with varying details – hence my question about the mortgage payment.
That turned out to be quite a long text for just a few questions, but every journey starts with a first step...
Best regards and good night,
Dani
I have been a silent reader here for a while. I originally wanted to ask these questions in a thread where people post quick questions and different users respond – as I’ve often seen in other forums – but unfortunately, I couldn’t find one. So, I finally decided to start my own thread.
A brief introduction about us.
I am 25 years old and have been with my company for 6 years (including my training period). I work for the city and am basically a civil servant. That means I always get some paperwork for insurance discounts and other typical benefits. It’s not an official civil servant status, but close enough in terms of job security.
My girlfriend is 22, has been working for a small to medium-sized enterprise for one year, and is doing an evening degree at the same time.
We have been a couple for nearly 6 years, and naturally, buying a house within the next few years is not off the table. We definitely do not plan to have children in the near future.
I am still a complete beginner in this field and would simply like to hear some opinions regarding our plans.
First, I have to say that our spending habits are far from ideal...
I have a net income of at least 2500€ per month (tax class 1). In addition, I receive Sunday work pay, overtime payments, on-call pay (about 200€ per month), a company car (only for commuting to and from work), and a total of 14 monthly salaries per year.
However, I only consider these extras as a buffer and do not include them in our budgeting calculations.
She has a fixed net income of 1700€ (tax class 1), which will increase at the end of the year if she completes her degree successfully.
So, we have a minimum of 4200€ available. As it stands now, aside from saving 250€ per month, everything else is basically spent. Our expenses break down as follows:
Rent: 1000€
Electricity: 80€
Internet: 50€
Car (including insurance and tax): 450€
Insurance, mobile contracts, etc.: 150€
Loan repayment (which will end in 2 months): 250€
Public transportation ticket: 100€
Savings: 250€
Since we don’t keep a detailed household budget yet, I can’t give exact figures for groceries, clothing, etc. We just buy what we need at the moment. With 1900€/month (plus my additional allowances/salaries), our annual holidays are also paid for. The car is unfortunately one of the worst financial decisions I have made, as it is hardly used except on weekends. This will be minimized when we buy a house, but I’ll leave it as it is for now.
As you can see, the 1000€ rent is a major burden and that’s exactly what bothers us most.
Currently, we are looking at properties in the area, and decent houses/semi-detached houses are around 350,000 to 450,000€ range.
No one can say where prices will be in the next few years, but this is the current situation. I have looked even less into building a house than buying one, in case anyone wants to suggest that option.
Is buying a house generally more expensive than building one?
How much mortgage payment would you recommend with this income?
I understand it probably varies a lot, but can you give a rough idea of additional monthly costs, like waste collection, home insurance, etc.? Is there a place where I can look this up for my location?
How much do you put aside monthly for home renovations?
The last two questions are the most important to me, because our spending habits are a factor – one person can do 1000€, but another only 800€.
We have not been to a bank yet. However, I once had an appointment at my house bank for the car financing, and I was “offered” roughly 750,000€ (with 60,000€ equity) for a house on the side. Since then I don’t take that bank seriously and would rather ask here first. We do have equity, but I can’t give exact amounts because there are five different contracts with varying details – hence my question about the mortgage payment.
That turned out to be quite a long text for just a few questions, but every journey starts with a first step...
Best regards and good night,
Dani
S
Steffen802 Jun 2017 17:49Marvinius schrieb:
Well, you can also save money with your first property. Maybe buy something from the existing market now and then build new in 10 years?
Of course, you can do that... but I think it’s wishful thinking to say you’re actually "saving" money that way. In the end, you still spend more money (much more).
M
Marvinius2 Jun 2017 18:46Why is Germany far behind in the average private wealth? Because the homeownership rate is so low, right? In England, for example, there is the property ladder—just look it up on Google. Those who start sensibly in their mid-20s don’t make a mistake...
H
HilfeHilfe3 Jun 2017 08:53Well, I also struggle with these kinds of cost-saving contracts... 40€ per month starting from confirmation. At most, you could afford an amazing vacation with that. Even contracts taken out by family members, without knowing if they are still active... Usually, you receive annual statements of value. If you don’t read those, you should stay away from house construction contracts... it’s just annoying mail.
My advice: set up standing orders right away where each of you transfers a fixed amount to your own savings account or investment account at the beginning of each month, and don’t touch it—for anything, not even holidays. For example, you could transfer $1,000 and she could transfer $500. This way, you create a small simulation of a family with a house and simultaneously save equity.
We actually started doing this from the very first thought of buying a house, and it allowed us to purchase the land, which as equity earned a good interest rate.
We actually started doing this from the very first thought of buying a house, and it allowed us to purchase the land, which as equity earned a good interest rate.
DNL schrieb:
Then you have a small simulation of a family with a house and at the same time save equity.
We actually did it this way from the very first thought of buying a house Or, if it runs long enough, this simulation will also show if you have made a rough miscalculation. I would recommend this to anyone dreaming of building a house.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
danixf schrieb:
I am freshly 25 and have been with my company for 6 years (including training). I work for the city and am basically a 'civil servant.' That means I always get some kind of document for insurance, etc., and receive the typical benefits. That's regarding job security. Officially civil-servant status, however, I don't have.
My girlfriend is 22, has been working for a small medium-sized company for a year, and is doing evening studies on the side.I had to read this again.
My advice to you, in addition to the tips from others before me: let it mature a little longer!
You have been working for 3 years and don’t know your employment status (having that "document" doesn’t make you undismissable, let alone a civil servant — just saying).
Your young girlfriend is currently pursuing evening studies to further develop herself. It’s possible that a job offer in another city could arise for her. Basically, everything is still possible for you both — unfortunately not if you tie yourselves down.
So, enjoy your carefree life for a few more years and lay foundations — both in your career and in your finances.