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
C
Caspar20207 Jun 2017 05:14danixf schrieb:
I work for the city and am basically a civil servant.In the public sector, there are two groups: civil servants and employees. And yes, most insurance companies and so on also offer discounts to employees in the public sector. But you still remain an employee.
danixf schrieb:
Since we haven’t kept a household budget yet, I can’t provide exact figures forA household budget is always helpful; you sometimes experience one or two surprises.
danixf schrieb:
Unfortunately, the car is also one of the dumbest things I’ve ever done, since it – if at allDon’t you want to move a bit further out? For a woman with a child and no car, it can already be quite challenging there.
danixf schrieb:
How much mortgage payment would you recommend with that amount of money approximately?At the moment, only the base rent plus 250 minus €2.50 per square meter (ft²) for additional costs for the building would fit in.
danixf schrieb:
Equity is also available, but I can’t specify exact values because there are 5 contracts, all different – hence the question about the mortgage payment.Five contracts mean five documents that arrive once a year at your home or your parents’. You don’t have to memorize the exact cents, but you should definitely have the amount before the decimal point ready.
The question of how much equity you have is actually the most fundamental one. So go and find that out.
And what about the money you save every month?
Steffen80 schrieb:
...
New construction cheaper than existing buildings? How do you come to that? New construction is ALWAYS! significantly more expensive. Of course, you shouldn’t compare an existing property in a good location with new construction in a less desirable location. If the location is similar, new construction is considerably more expensive! Period.
....I have to disagree here. Based on my own experience within a 50 km (30 miles) radius around Frankfurt, Stuttgart, Munich, Augsburg, Darmstadt, the situation is quite different. For a long time, I regularly viewed multiple used single-family homes priced under 300,000 euros. Most of them required extensive renovations or at least mandatory replacement of heating systems and other installations. That made them very expensive if you follow legal regulations. And the few acceptable houses sold immediately, often on the weekend of the first viewing.
That is why I am now planning to build a new house myself.
It apparently is true that building new is much more expensive than just buying an existing home. But in my experience, nearly all of the older homes offered have a backlog of renovations. And if you have that fixed for 100,000 to 150,000 euros (cost estimate, legal compliance), suddenly the old single-family home becomes more expensive than a new prefab house.
If anyone knows of an existing single-family home under the above conditions in the condition of a new, low-cost prefab house—I would take it immediately. Feel free to send me a private message. Real estate agent fees on top would be fine. Serious inquiries only.
bindig schrieb:
In my experience, older houses for sale almost always have a backlog of necessary repairs. And if you have those fixed for 100,000 to 150,000 euros (cost estimate, legal), the old single-family house suddenly becomes more expensive than a new prefabricated house. In the current market situation, the overlap between "houses people actually want to buy" and "houses on offer" is very small and requires quick access to liquidity. You can find real estate bargains, but only on the golf course (at the divorce lawyer’s).
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
Yes, that is indeed the case. Even here in rural areas, interesting houses sell quickly without any public advertising.
My new project was listed for a relatively(!) long time only because of the need for renovation and the small kitchen and bathroom.
Fortunately, those were two things that didn’t bother us personally much.
Just two streets away, the building plot of our size already costs more than half of our entire house. Our new property has three garages, a fully maintained plot, and so on.
And the renovation at a reasonable price is only possible with a lot of DIY work and tradespeople from our circle of friends (all legal).
However, I find it difficult to directly compare old and new buildings. Today’s requirements are simply different from the past, and the floor plans often involve many compromises.
Regards, Joe
My new project was listed for a relatively(!) long time only because of the need for renovation and the small kitchen and bathroom.
Fortunately, those were two things that didn’t bother us personally much.
Just two streets away, the building plot of our size already costs more than half of our entire house. Our new property has three garages, a fully maintained plot, and so on.
And the renovation at a reasonable price is only possible with a lot of DIY work and tradespeople from our circle of friends (all legal).
However, I find it difficult to directly compare old and new buildings. Today’s requirements are simply different from the past, and the floor plans often involve many compromises.
Regards, Joe
S
Steffen8026 Jun 2017 19:14bindig schrieb:
My own experience within a 50 km (30 miles) radius around Frankfurt, Stuttgart, Munich, Augsburg, Darmstadt is quite different.Exactly... and you think a building plot plus new construction in this location would be cheaper???
Think it over again...
Joedreck schrieb:
Today's standards are simply different from the past, and sometimes the floor plan involves many compromises. Budget constraints also force compromises, even with custom designs. Most future homeowners have experience only with apartments; their misconceptions about what makes a functional floor plan can be further from reality than what others have built and renovated over time.https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
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