Assessment of financing offer terraced house Hesse

Hello everyone, we currently have a property in mind and would like an honest assessment from the experts here

General information about you

[*]How old are you? - She 31, He 34
[*]Are there children? - 2: 4 and 1
[*]Are children planned? - No
[*]What do you do professionally? He software development, She medical assistant (currently still 1 year on parental leave)
[*]Are you employed, self-employed, retired, housewife, househusband, etc...? - employed
[*]How many hours do you work? - He 40, She probably 20-30 after parental leave

Income and asset situation:

[*]What income do you have (gross/net)? - Net: He 4100€ (tax class 3), She 350 parental allowance, afterwards about 1000€
[*]How much child benefit do you receive? 416€
[*]How much equity do you have? - 45k€
[*]How much equity do you want to invest in the house project? - 0 (All will go toward additional costs and kitchen, etc.)

Housing costs:

[*]Current cold rent - 1000€
[*]Current warm rent - 1250€
[*]Electricity - 80€
[*]Phone, internet, mobile - 50€
[*]

Total joint costs ~ 3200€ per month

Savings:

[*]About 1000€ remain per month currently. The rest still goes to Riester and mutual fund savings plans

General information about the property:

[*]How large is the plot? - 140sqm
[*]New build, old building (year built), house type? - New build terraced house (mid-terrace)
[*]Garages - parking space + carport
[*]How large is the house? (living area / usable area) - 140sqm plus 25 parking area, no basement

Construction or purchase costs:

[*]366,000€ base price (turnkey) plus 40,000€ selection (including wallpaper and painting) plus 13,000€ kitchen plus 10,000€ flooring
[*]Total costs 430,000€

Other costs:

[*]Kitchen costs -
[*]Furniture, lamps, decoration: - We estimated a buffer of 20,000€.

Cost breakdown:

[*]Total costs: 480,000€ (including ancillary costs, no broker)
[*]Deductible equity: 45,000€ (15,000€ will still be saved during construction)
[*]Financing amount: 420,000€

Necessary loan details:
Current favorite:

Component 1: 120,000€ KFW 55, 0.75% for 10 years (18,000€ repayment grant)

Component 2: 100,000€ KfW home ownership 0.75% 10 years

Component 3: 200,000€ bank loan 1.35% for 15 years.

The rate will be about 1400€ here

We will apply for the Baukindergeld and try to use it completely as a special repayment on the bank loan.

Thanks in advance for hints and tips

Best regards

The problem here is that you have two loans each with a fixed interest rate period of 10 years. Therefore, there is an interest rate risk.

Have they meanwhile adjusted the [kfw] with a grant? Normally, it was 0.95%.

Welcome to the forum.

Are the incidental construction costs already included in your calculation?

What comes to mind spontaneously:

We will apply for Baukindergeld and try to use it completely as a special repayment on the bank loan.

Is that still achievable?

How was it again… for a new build, the building permit must still be available this year, or is the purchase contract with the general contractor enough? I’m a bit uncertain right now. But if it is the building permit, it largely depends on whether it gets approved quickly for you or not. Depending on the city, that can sometimes take a few months.

Will you really save anything during the construction phase? Otherwise, there will also be high remaining debts... where is the [Grundstück]? overall, it's all tight

Welcome to the forum. Are the incidental construction costs already included in your calculation? What spontaneously occurs to me: Is that still achievable? How was it again.. for a new building the building permit must still be obtained this year, or is the purchase contract with the general contractor sufficient? I am currently unsure. But if it is the building permit, it largely depends on whether it is processed quickly for you or not. Depending on the city, that can sometimes take a few months.

You need a building permit by 12/31/2020.

Are you really going to save anything during the construction phase? Otherwise, also high residual debt ... where is the plot? Overall, just about everything

We would build with a developer, i.e. the price is really fixed here. Including the plot