What is the maximum price for a house with land?
How much can a couple afford if they earn approximately €6,500 net together? Equity would be €100,000.
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Roughly speaking, you should have at least 20% equity. With 100k, that would be a loan amount of 500k.
But then income also plays a role.
The second principle is: The loan installment should not exceed 40% of net income (or less depending on whether further loan or leasing installments have to be paid).
40% of 6,500 = a maximum loan installment of €2,600
That would bring you to 496k (over 25 years + 4% interest). Theoretically, equity and salary would be roughly the same. But, as I said, that's the upper limit, and I personally would never use the maximum.
It can always happen that someone earns less and then you have to be able to afford the installment.
Add to that the total cost you can afford, around 600k. You then have to deduct the additional purchase costs, plus any renovation and furnishing costs, etc., and you'll arrive at the maximum amount the house can cost. Roughly speaking, I'd estimate around 400k, since there will always be some unexpected extra costs.
Subtract living expenses and a safety margin from the $6.5,000. This should be the maximum payment. Then, using an annuity of at least 6%, simply extrapolate it to the potential loan amount and add the $100,000. This gives you the maximum total investment (don't forget additional costs when purchasing).
I would not spend more than half of what you have left each month after all other bills (utilities, heating, car, etc.) on interest and repayments.
There is no upper limit.
yes, because the necessary credit is no longer affordable above a certain amount and depending on the interest rate.