Assessment of construction project, financing

You have a good handle on your finances, which is definitely great. The income level is also very good for your age. On the other hand, there are the 41 years of loan term, which would definitely be way too long for me. I also find it hard to imagine that the 15 special repayments will actually be made (or can be). There is always something to do with a house, and just garden tools or garden furniture can cost several thousand if you want something decent. For example, last year we bought a garden table for €3000 and the year before last a sofa for €4000. That would be it in your case with the special repayments. Of course, there are also much cheaper (or more expensive) options, but then they are also lower quality (or luxury). You have to decide for yourself what you value more. You can certainly do it that way, but it wouldn’t be for me. However, it's easy for me to say since I was lucky to have built at a time when both construction prices and interest rates were significantly lower... I wish you in any case that you make the right decision for you.

We currently have not planned with KfW, as for a solid house, after several discussions, it is probably also associated with significantly higher costs compared to prefabricated houses, and these then eat up the interest advantage again. We have not yet obtained an offer for prefabricated houses, but maybe one should simply go through that again.

The ancillary construction costs of 17k seem very low to me. Have you included the following aspects?

[*]House connections? (somewhere between 4-10k)
[*]Construction electricity/construction water? (3-4k)
Do you have a soil survey? Are there possibly additional foundation costs? (hard to estimate)
[*]Drainage and inspection shaft (quickly also over 5k)
[*]Insurance (0.5k)
[*]Permit fees (0.5 - 1k)
[*]Surveying services (2-3k)

Check if you, for example, need a cistern. In our area of Dippoldiswalde, it is prescribed by the wastewater association. Otherwise, if the house is located close to the street, the utility lines are not that expensive. You should budget money for a inspection shaft or, for example, deep excavation connections. I have already read here that people had to pay five-figure amounts because the street had to be torn up and cordoned off. And the foundation of the house is also important; it can range from 30cm excavation up to 1.5m soil replacement. And also plan a buffer for patterning (this here, that there). And if you don’t do much yourself, everything will get quite expensive. Terrace + roofing, paving, paths, garden, etc. is not cheap. Inside is the same...

1. That is somewhat difficult to quantify since we only get exact figures when we submit the building application. At least the lines from the connection points to the house are included in the offer. Calculated are €10,000 development costs + €17,000 ancillary costs. Drinking water is probably the most expensive item, as according to the drinking water association a line needs to be reinforced. As mentioned, this was a misplanning back then and the previous owners had no reason to connect properly since they could obtain electricity and water for the garden from elsewhere. 2. I would have calculated construction electricity + water the same way. 3. The soil survey has been conducted, paid for, and from a foundation perspective we have normal soil of class 3-5. This is available to the construction company and the additional costs are included in the offer. Also included is the removal of 80 m3 of uncontaminated soil. 4. Drainage including 2 soakaway shafts and pipes is also included in the price. We are still undecided about the cistern, but it would be advisable since we are not allowed to discharge rainwater into the sewage system. 5./6./7. I have on my radar that the building permit should be manageable as we are building according to the development plan with a minor deviation. The plan is quite old and completely different houses have already been approved in the area. I have good contacts with the surveyor and hope to get somewhat cheaper there.

Phew... a tough decision, on one hand everything is already a bit tight, the house will definitely cost a bit more, but given how you manage the finances, probably doable.

I think: Considering your age and that of your children - either now or never!

If you are passionate about it and the situation is your dream - then go for it. You won't go broke with it - worst case it becomes so difficult for you that you want to sell it - then compared to not building you wouldn't have lost much. Best case - it goes easy for you and the salaries increase over the years and you love your new home...

It also depends on what you give up for it - rental apartment in a dream location versus land you struggle with - then think it over again...

GD