A small request: Do you have any advice for us?

  • Erstellt am 2012-10-03 21:12:21

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
 

Der Da

2012-10-04 08:35:35
  • #2

I agree 100% with this. Exactly like that :)
Your numbers look good, it should work. I hold back on BSP, I don't think much of them. What and how one can do if one already has some must be said by a professional. Especially with the low interest rates, in my view, they no longer make sense.
But as I said, go to a financing professional who will calculate the best option with you.
 

christoph1983

2012-10-04 09:09:27
  • #3
I agree. I want to keep the BSP contract, which I can mortgage at 1.95%, because the interest rate seems favorable to me. However, I am still unsure whether to use it for financing or to "save" it. The mortgage must also fit into the overall financing since the BSP amount has to be repaid at 8‰ per month - 400€.

For your information: When my wife (kindergarten teacher) goes back to work, her net salary will be about 1600€. Before pregnancy, my wife earned an additional 400€ through a "supported living" side job. However, I consider it unlikely that the side job can be resumed to the same extent with three or four children.
 

Shism

2012-10-04 11:14:29
  • #4


a bit optimistic, especially when I read:



A turnkey house for 5-6 people for 180k? Children also need space, and space costs!

And if the family planning really turns out that way, then there won’t be a salary from your wife that you can count on for a longer time!

Who is supposed to take care of the 3-4 children if your wife goes to work? At best, a part-time job is possible and even that only if there are reasonably good/affordable childcare options nearby.

With the next children, parental allowance will also be correspondingly lower because your wife was not fully employed in the months before.

and one should not forget that children cost money! 4 children certainly represent a non-negligible cost factor.

By the way, €155/month disability insurance seems a bit high to me... or are you in a “risky” job with heavy physical labor etc?
 

Der Da

2012-10-04 11:23:21
  • #5
1600 net in part-time as an educator? Wow, I know that number as a full-time salary, gross for this professional field. With regard to [Elterngeld] you probably mean full-time.

A tip on the side: never count on money you don’t currently have but might have someday. Your net income is good enough to handle the project, so there’s no need to speculate. I also think a full-time job with 3 kids isn’t that easy to manage, because a daycare can really hit your account hard. We have an offer from a daycare that wants almost 700 per month. However, this is also the only one so far that could even offer us a place (no wonder at that price). The search goes on, and we’re diligently signing up on waiting lists :) And that even though our little son isn’t even born yet.
So always only count on what YOU currently have. Your wife could theoretically also be completely out for a year if, for example, no daycare place is available, or in the worst case, the child is just sicker. That’s currently the case with a colleague, where what was supposed to be one year of parental leave for his wife became two because the child had health problems. Now the child is 2 and can go to kindergarten normally. But they didn’t count on that beforehand.
 

Der Da

2012-10-04 11:29:16
  • #6


The amount is about right if you want full coverage. The insurance pays out 2900€ monthly.

I chose the coverage amount so that, combined with the reduced earning capacity pension, it brings me back to my current net income. I then pay 36 € per month for 32 years.
 

Similar topics
19.02.2013Is a Riester loan useful for my case?13
04.09.2012Land paid - Building with an additional loan?16
25.03.2015Financing exclusively through a building savings contract12
16.02.2015Property purchased - Is financing/loan for house possible?13
04.03.2015Budget plot and building with basement21
31.03.2015Property / Financing amount / Insurance? Experiences10
18.06.2015The plot must be developed. The general contractor says this is a priority!35
15.05.2016Own home - Planning the property / Financing with income ok?22
29.05.2016Conditions for Riester home savings contract - What interest rate?16
13.08.2016Variable or fixed financing for land?11
16.01.2017No building permit as long as the land is not developed?10
17.04.2017Is land and house construction possible with our income?43
13.06.2017Plot fully developed, additional costs?10
06.03.2018Building savings contract and Wohnriester - Where is the catch here?28
25.09.2019Considerations for financing land and home construction10
14.05.2020Financing Land & House - 2 Different Loans34
13.10.2020Land available - ancillary construction costs, ancillary house costs, financing?34
11.01.2021Financing offer: TA loan with building savings contract24
29.10.2022Is the property fully developed? - Cable is partially missing10
11.10.2023Loan for land - variable vs. fixed with special termination right16

Oben