christoph1983
2012-10-03 21:12:21
- #1
Hello & good evening,
my name is Christoph, I am 28 years old and have been a father of a healthy son for about eight weeks. My wife & I have decided to build a house.
In our city, a new development area with about 150 plots will be developed in mid-2014, the allocation will take place at the end of 2013. Until then, we want to have strategically positioned our capital to buy the plot and build within the construction obligation period (2 years). Since I have already read many posts here and am mostly really impressed by the thoroughness and quality of the advice, I would like to ask you to take a moment and perhaps write me your opinion on our project:
--
We expect the following costs:
- Plot: 600sqm at €150/sqm = €90,000 (fully developed)
(There is a municipal subsidy program: For each child, you receive a €5,000 discount on the plot price)
- House (including foundation): €180,000
- Additional construction costs: €50,000
Total approximately: €320,000
--
Currently, we have just under €45,000 equity capital, composed as follows:
- €5,000 in a building savings contract. BSP sum €50,000
Deposit: €500 per month - loan at 1.95% - repayment 8‰ per month (that is €400)
- €3,800 in a Riester building savings contract. BSP sum €50,000
Deposit: €100 per month - loan at 3.50% - 6‰ per month (that is €300)
- €36,000 in a daily allowance account
--
Income
mine:
€2,900 net/month (13th salary), employed in a medium-sized company (103 years old, €350,000,000 revenue, family-run)
my wife’s:
Parental allowance: €1,100
afterwards part-time -> childcare worker
Since we want two or three more children, my wife will probably have no or only a low income (parental allowance) within the next 5 years.
--
Our ongoing monthly costs are:
- €600 for the two building savings contracts
- €610 rent
- €66 car insurance (€800 per year)
- €155 occupational disability insurance for me
Other:
- We drive a paid off natural gas new car (built 2011) worth about €25,000
- I own a Vespa (collector’s item), value: €5,000
- Also photo equipment, value €5,000
--
Now my questions:
- How do I best incorporate the two building savings contracts into the financing? Currently, we are considering whether to dissolve the 3.50% Riester building savings contract and put the money into the other BSP. To what extent the Riester subsidies are transferable to the other BSP, I don’t know. I assume we would have to accept a large, basically avoidable loss there. I plan to meet my BSP representative next week to discuss this. What can you recommend to me regarding this?
- Does it make sense to completely freeze the payments of €600 per month for the building savings contracts in order to repay the loan for the plot (as long as it is not yet built on) as much as possible at the beginning?
- In my opinion, it makes the most sense to set the repayment rates so that the repayment can be made solely from my income, and to use my wife’s income to repay via special repayments. What is your view on this?
Thank you for your effort & many thanks for your attention,
Greetings from Bavaria,
Christoph
my name is Christoph, I am 28 years old and have been a father of a healthy son for about eight weeks. My wife & I have decided to build a house.
In our city, a new development area with about 150 plots will be developed in mid-2014, the allocation will take place at the end of 2013. Until then, we want to have strategically positioned our capital to buy the plot and build within the construction obligation period (2 years). Since I have already read many posts here and am mostly really impressed by the thoroughness and quality of the advice, I would like to ask you to take a moment and perhaps write me your opinion on our project:
--
We expect the following costs:
- Plot: 600sqm at €150/sqm = €90,000 (fully developed)
(There is a municipal subsidy program: For each child, you receive a €5,000 discount on the plot price)
- House (including foundation): €180,000
- Additional construction costs: €50,000
Total approximately: €320,000
--
Currently, we have just under €45,000 equity capital, composed as follows:
- €5,000 in a building savings contract. BSP sum €50,000
Deposit: €500 per month - loan at 1.95% - repayment 8‰ per month (that is €400)
- €3,800 in a Riester building savings contract. BSP sum €50,000
Deposit: €100 per month - loan at 3.50% - 6‰ per month (that is €300)
- €36,000 in a daily allowance account
--
Income
mine:
€2,900 net/month (13th salary), employed in a medium-sized company (103 years old, €350,000,000 revenue, family-run)
my wife’s:
Parental allowance: €1,100
afterwards part-time -> childcare worker
Since we want two or three more children, my wife will probably have no or only a low income (parental allowance) within the next 5 years.
--
Our ongoing monthly costs are:
- €600 for the two building savings contracts
- €610 rent
- €66 car insurance (€800 per year)
- €155 occupational disability insurance for me
Other:
- We drive a paid off natural gas new car (built 2011) worth about €25,000
- I own a Vespa (collector’s item), value: €5,000
- Also photo equipment, value €5,000
--
Now my questions:
- How do I best incorporate the two building savings contracts into the financing? Currently, we are considering whether to dissolve the 3.50% Riester building savings contract and put the money into the other BSP. To what extent the Riester subsidies are transferable to the other BSP, I don’t know. I assume we would have to accept a large, basically avoidable loss there. I plan to meet my BSP representative next week to discuss this. What can you recommend to me regarding this?
- Does it make sense to completely freeze the payments of €600 per month for the building savings contracts in order to repay the loan for the plot (as long as it is not yet built on) as much as possible at the beginning?
- In my opinion, it makes the most sense to set the repayment rates so that the repayment can be made solely from my income, and to use my wife’s income to repay via special repayments. What is your view on this?
Thank you for your effort & many thanks for your attention,
Greetings from Bavaria,
Christoph