Arango18
2021-06-13 17:51:57
- #1
Hello everyone,
we are also tackling the topic of "building a house" and plan to start construction in spring 2022 after I finish my further training. The plot of land was already purchased several months ago and despite not entirely optimal circumstances like the Corona situation or the current price explosion for building materials, we are relatively determined to follow through with it. The financial situation has been checked and personally assessed by me as basically feasible; initial talks and offers from the bank for orientation have already taken place. However, since I am basically a rather thoughtful and security-oriented person, I would like to have the whole thing reviewed by you, as experienced people in this field, and hope for honest feedback. All information has been provided to the best of my knowledge and belief.
We look forward to your input, questions, and critiques!
Many thanks in advance,
MJ
General information about you:
Income and asset situation:
Expense situation:
I have compiled all current and ongoing costs after the start of construction in a detailed calculation. This has been continuously checked and has turned out to be relatively conservative, especially regarding values for, e.g., leisure time. These tend to be rather high.
The values are as follows:
Housing costs:
Mobility costs:
Insurance costs:
Living expenses:
Savings:
Other expenses:
Income and expense totals:
The following values relate to the situation after moving into the house and with loan repayment. If I forgot anything above, it is definitely included in these totals.
General information about the property:
Building or purchase costs:
Other costs:
Cost overview:
Necessary credit details:
we are also tackling the topic of "building a house" and plan to start construction in spring 2022 after I finish my further training. The plot of land was already purchased several months ago and despite not entirely optimal circumstances like the Corona situation or the current price explosion for building materials, we are relatively determined to follow through with it. The financial situation has been checked and personally assessed by me as basically feasible; initial talks and offers from the bank for orientation have already taken place. However, since I am basically a rather thoughtful and security-oriented person, I would like to have the whole thing reviewed by you, as experienced people in this field, and hope for honest feedback. All information has been provided to the best of my knowledge and belief.
We look forward to your input, questions, and critiques!
Many thanks in advance,
MJ
General information about you:
[*]Who are you? We have been living together as a couple for 8 years
[*]How old are you? 28 years old
[*]Are there children? No
[*]Are children planned? Yes, 1-2
[*]What do you do professionally? I have been working in the automotive supplier industry for 8 years, but will soon be working in the digital marketing industry. Ongoing further training at evening school to become a specialist and soon a business economist. Partner is an employee in the public sector. Both receive a 13th-month salary – vacation and Christmas gifts are intended to be paid from this, so I will not include this in the calculation.
[*]Are you employed, self-employed, retired, housewife, househusband, etc...? I will soon be in an employment relationship with a probationary period, afterwards permanent. Partner is permanently employed.
[*]How many hours do you work? Both 39 hours per week
Income and asset situation:
[*]What income do you have (gross/net)? Both tax class I with €2,400 / €2,000 net. For me, a setback after changing industries as an entry-level salary with potential for increase; for my partner, only small increases due to experience levels or collective agreement adjustments are expected. For my girlfriend, it will be around €1,400 if she works part-time after parental leave.
[*]How much child benefit do you receive? None yet.
[*]Other transfer payments such as parental allowance, sickness benefit, etc...? None.
[*]How much equity do you have? Paid plot of land including all development and incidental costs such as notary and court (according to the standard land value €57,500) + €20,000 in cash assets + approx. €3,000 as reserve/puffer for possible upcoming parental leave, which should not be touched.
[*]How much equity do you want to invest in the house project? As much as possible, except emergency funds and reserves for parental leave. The equity is intended for furniture and kitchen and the construction costs must be financed. It is quite possible that we might receive some subsidies from the family side, but we do not know yet if and how much.
Expense situation:
I have compiled all current and ongoing costs after the start of construction in a detailed calculation. This has been continuously checked and has turned out to be relatively conservative, especially regarding values for, e.g., leisure time. These tend to be rather high.
The values are as follows:
Housing costs:
[*]Current cold rent €500 / month
[*]Current warm rent €570 / month
[*]Electricity €65 / month
[*]Gas €65 / month
[*]Water, sewage, garbage fees, street cleaning included in warm rent
[*]Telephone, internet, mobile phone €75 / month
Mobility costs:
[*]Car leasing €235 / month
[*]E-bike leasing €40 / month
[*]Insurance €90 / month
[*]Taxes €20 / month
[*]Fuel €200 / month
[*]MOT (TÜV) €5 / month
Insurance costs:
[*]Liability insurance €7 / month
[*]Risk life insurance none yet – will be about €22 / month
[*]Pension insurance none
[*]Disability insurance none yet – will be about €80 / month
[*]Accident insurance none
[*]Household insurance none yet – will be about €5 / month
[*]Legal protection insurance €10 / month
[*]Building insurance none yet – will be about €24 / month
[*]Homeowners association: will be about €5 / month
Living expenses:
[*]Groceries, drugstore, other daily needs €350
[*]Pets (food, vet, medication, stable costs) none
[*]Hobbies (club/pub, stadium visits, sports equipment, clothing, ...) €500
[*]Club fees / team funds / ... €60
[*]TV/Video/Subscriptions €50
[*]Donations €5
[*]Miscellaneous €30
Savings:
[*]Maintenance reserves €150 / month
[*]Currently about €1,000, sometimes €100 - €200 more, depending on the month
[*]With house loan, we plan to save €250 / month in addition to maintenance reserves, a total of about €400 / month
Other expenses:
[*]Alimony payments? None
[*]Loans? None
[*]Other? Cash that "just disappears," factored under “hobbies”
[*]Was something forgotten? Please give feedback on this J
Income and expense totals:
The following values relate to the situation after moving into the house and with loan repayment. If I forgot anything above, it is definitely included in these totals.
[*]Total income €4,400
[*]Property expenses (installment, water, sewage, garbage fees, street cleaning, energy consumption, insurances, maintenance reserves) €1,730
[*]Living expenses / leisure / saving €2,050
[*]Total expenses thus €3,780
[*]Balance + €620 - currently, when both work full-time. Savings are to be built up again at first. If a child comes, of course, it looks worse at first.
General information about the property:
[*]How large is the plot? 675 sqm
[*]What are the dimensions? 25*27
[*]What is the standard land value? €80/sqm
[*]New build, old building (year built), house type? New build, single-family house with basement (because of hillside plot), gable roof
[*]Garages? Double garage in the basement
[*]How large is the house? (living area / usable area) approx. 160 sqm / 220 sqm
[*]What is the market value of the plot and house after completion? Estimate around €500,000.
Building or purchase costs:
[*]Plot costs: €70,000 (paid)
[*]Development costs: included in purchase price
[*]Incidental acquisition costs (notary, court, property transfer tax, broker) without broker: €3,500 (paid)
[*]Building or purchase costs (incl. architect, structural engineer): According to the architect’s calculation, including all ancillary costs approx. €430,000 - I am calculating a 10% price increase due to the current raw material situation. It could relax somewhat until then, but of course also worsen further. So we would be at around €475,000. According to the architect, a high standard is calculated.
[*]Additional building costs (e.g. house connections, soil expert, construction power etc.) Civil engineering: included in the calculation price (see above)
[*]Outdoor facilities/terrace, paths, garden design, fences, etc. €12,500 - to be done gradually from ongoing reserves/savings and with a lot of own work.
[*]Financing costs (e.g. fees or commitment interests): Not yet finally clarified
Other costs:
[*]Kitchen costs €12,000
[*]Furniture, lamps, decorations €8,000
Cost overview:
[*]Total costs €580,000
[*]€20,000 cash, with which we would like to buy kitchen and furniture so that no separate loan needs to be taken. I want to keep financing as simple and clear as possible. Subsidies from BAFA and KFW I have roughly and flatly calculated at €15,000, which has not been determined yet; €30,000 own work (painting, laying floors, outdoor facilities, homeowner help with masonry, drywall, earthworks - some craftsmen like carpenter (father-in-law) or electrician (brother-in-law) in the family)
[*]Financing amount approx. €425,000
Necessary credit details:
[*]Loan amount €425,000
[*]Type of loan (e.g., annuity loan, bullet loan, etc...) annuity loan
[*]Interest rate (p.a. nominal, otherwise effective) offers are available with 1.05% mixed interest rate, but a tendency of increase until the start of construction – I would estimate about 1.3%?!
[*]Fixed interest period 15 years
[*]Remaining debt at the end of the fixed interest period about €275,000.
[*]Fictive total term until full repayment: I hope to pay off in max. 33 years.
[*]Initial repayment rate between 2-3%
[*]Monthly installment target: approx. €1,200 for now. Or should we dare more?
[*]Special repayments possible? Would be possible, but I would prefer investing in ETFs during the fixed interest period.
[*]Repayment rate change possible? (Conditions such as number, repayment rate range indicate) – basically possible