500.000-Euro-Haus: So viel Gehalt brauchst du wirklich

Summary

The presenter explains the full cost and financing requirements for buying a €500,000 house in Rhineland-Palatinate. Her central point is that the listing price alone is a poor measure of affordability. Buyers also need to budget for transaction costs, cash required at signing, ongoing ownership costs, and the income needed to sustain the mortgage.

Costs and Financing Example

• Purchase price: €500,000
• Estimated purchase-related costs:
  • Property transfer tax in Rhineland-Palatinate: 5% (€25,000). Rates across German states range from 3.5% to 6.5%.
  • Notary: approximately 1.5% (€7,500)
  • Land registry: approximately 0.5% (€2,500)
  • Buyer’s real-estate-agent commission: approximately 3.57%

The video gives total additional costs of €52,850, bringing the estimated total cost to €552,850—about 10.6% above the purchase price.

Arithmetic discrepancy: The subtitles state that the 3.57% commission is €7,850, but 3.57% of €500,000 is €17,850. The stated total of €52,850 is consistent with €17,850, not €7,850.

A common 20% equity guideline means contributing €100,000 toward the purchase price, with transaction costs paid on top. In this example, buyers would need approximately €152,850 available by the notary appointment.

More equity may improve the loan rate. The presenter cites a current difference of roughly 0.4 percentage points between financing at 60% and 90% of the property value. On a €400,000 loan, she estimates this could mean around €140 per month over the fixed-rate period.

These figures are illustrative. The video says mortgage financing is assessed individually and costs vary by state and borrower.

Mortgage Payment and Income

Assuming €152,850 in upfront funds leaves €400,000 to finance:

• The assumed interest rate for a 10-year fixed-rate period is around 4%, potentially higher depending on creditworthiness, the property, and the loan amount.
• The assumed initial repayment rate is 2%.
• A 4% interest rate plus 2% repayment results in an estimated payment of €24,000 per year, or €2,000 per month. The presenter estimates roughly 28 years to repay the loan.

The mortgage is not the only housing cost. Property tax, insurance, utilities, heating, and maintenance also matter. A maintenance rule of thumb is about 1% of the property value per year; the presenter estimates roughly €450 per month for this example.

Using a guideline that the mortgage payment should be no more than 35% of net household income, a €2,000 payment implies about €5,700 in monthly net household income. This does not include the estimated €450 in ongoing costs. Some banks may allow up to 40%, but the presenter cautions that this leaves less room for unexpected expenses.

Four Ways to Improve Affordability

1. Lower the purchase price. A lower price reduces transaction costs, required equity, and the mortgage payment. Buying for €450,000 instead of €500,000 would require about €15,000 less at signing and reduce the estimated monthly payment from €2,000 to about €1,800. The presenter argues that finding a less expensive property can have an effect comparable to adding a similar amount of equity.

2. Adjust the repayment rate carefully.

   • Raising repayment from 2% to 3% would increase the payment to about €2,333 per month, but shorten repayment from roughly 28 years to 22 years.
   • Reducing repayment to 1.5% would lower the payment to about €1,833, but extend repayment to more than 30 years.
   • A lower repayment rate leaves more debt outstanding when the fixed-rate period ends, creating refinancing risk at an unknown future rate.
   • The presenter recommends considering contractual special-repayment options and flexibility to adjust repayments; these may come with an interest-rate surcharge.

3. Check government and state support early. Programs through KfW and individual German states may offer low-interest loans or grants. Eligibility can depend on factors such as family status, income, and energy efficiency. Many programs must be applied for before signing the purchase agreement, and programs and terms can change over time.

4. Build savings before buying. A building society savings contract (Bausparvertrag) can help accumulate equity while securing terms for a later loan. It may be useful if the buyer expects interest rates to rise. The presenter also mentions checking eligibility for employer-provided savings benefits and a housing premium.

Full Financing: Cautions

Financing without equity is possible. Financing the additional costs as well is described as 110% financing.

The presenter says it generally requires strong, secure income, excellent creditworthiness, and a suitable property. It can be harder and more expensive for self-employed borrowers.

Risks include higher payments, a longer term, substantial residual debt at refinancing, and the possibility that a sale—particularly early on—would not cover the loan because transaction costs do not add value to the property.

The presenter says this approach may suit some borrowers with strong, secure income who have assets they do not want to use, or certain rental investors. However, it is more expensive for many buyers.

Suggested Planning Steps

• Add the purchase price to the relevant state’s transaction costs to estimate the true total.
• Calculate the cash needed at signing: additional costs plus at least 20% of the purchase price, then compare it with the funds available.
• Work backward from income: estimate 35% of net household income as a maximum mortgage payment, then use that payment to determine the affordable loan and purchase price.
• Seek individual advice based on the property and the household’s income situation.

Disclosures and Sources

The subtitles contain no explicit “not financial advice” statement. The presenter characterizes the figures as approximate, says financing is case-specific, and recommends individual consultation.

The video is presented by Madelaine of VR Bank Mittelhaardt eG; she says she has worked at VR Bank for eight years.