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
Che.guevara schrieb:
only about 45 percent of marriages end in divorce I’ve seen this argument mentioned quite often, usually with the same negative tone. It makes me wonder what the rate is among homeowners. Is it higher or lower? Simply throwing out a number doesn’t seem very helpful.
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Steffen8026 Aug 2016 08:41Che.guevara schrieb:
No matter how the divorce rate among homeowners is. Maybe higher, maybe lower. For people working 70 hours a week – generally higher!
With a loan to pay off and prioritized alimony obligations, everything quickly becomes a matter of survival.Well, that gives me some courage. Luckily, we have a prenuptial agreement where everything is clearly arranged. In case it ever comes to that, the house goes to me, and my spouse receives a kind of "settlement" depending on the length of the marriage.
Thankfully, that situation will hopefully never occur.
And now imagine that in our region, I am considered well-off with around 40,000 euros net per year (2 children, tax class 1).
I think what some people here forget are the regional differences. In Bavaria, I believe different "rules" apply compared to, for example, Emsland/Lower Saxony...
I think what some people here forget are the regional differences. In Bavaria, I believe different "rules" apply compared to, for example, Emsland/Lower Saxony...