Building financing draft - Feedback from building financing professionals desired?

  • Erstellt am 2011-09-18 17:50:23

der-snert

2011-09-18 17:50:23
  • #1
Hello everyone,

a brief foreword:
We (33 + 34 years old) are planning to have a small house built soon.
There are no kids yet – we are still practicing because one is supposed to come :)

Since we cannot afford any property in the region where we currently live (simply way too expensive), we have now found a nice building area in the surrounding area. Here, the building plot is still affordable (210€ / sqm).

Today we fiddled around with Excel and the calculator:

Plot costs approx. 110,000€
In addition, property transfer tax (5%) + notary fees (1.5%)
And of course a house with a bit of garden.
The house is supposed to be a timber frame house with approx. 140 sqm without a basement. Heated with a gas heating system + solar support.

We have saved about 87,000€ as equity.
Current monthly net income is approx. 5,000€, of which – when the child is here – 2,000€ will be lost. Therefore, we calculate with the remaining 3,000€. If there is parental allowance, we would rather save it or allocate it for other things....

With a 15-year financing, we can currently borrow 250,000€ without it strangling us (that’s about 1,050€ installment/month).

The plan is:
200,000€ through the bank with 1% repayment and 15 years fixed interest
50,000€ through KFW55 loan (30/8/10)
1% repayment because we have a special repayment right here. I would rather save 200€ / month in a daily allowance account to then increase the repayment to 2% through special repayments than bind myself. We currently have a bad case in our circle of friends where 150€ / month really is missing due to a short bottleneck.
KFW loan because the interest is a bit cheaper + lower loan-to-value ratio at the bank = better interest rate.

I’ll just post our calculation here, maybe one of you can take a look to see if it makes sense:

Plot 110,000
Additional costs 7,150
Total 117,150

Equity - plot/additional costs = -30,150
Mortgage 250,000
Remaining approx. 220,000 for house and garden

Question 1:
If I roughly calculate, I arrive at a price of approx. €/sqm of 1,500 without garden. Does that fit including connection costs, painting work, industrial parquet, etc.? Or is that completely unrealistic? The house providers always tell you that it fits.
I have an offer from "ProHaus" (prefab house) here, which fits. However, it is supposed to be not a prefab house, but rather a semi-prefab house (holzbau-rosenthal).

Question 2:
Equity ratio:
Is this correct: equity - additional costs / total costs
87,000 - 7,150 / 330,000 = 24%
I was told that 20% + additional costs in savings should be there to make it look somewhat solid.

I hope I have given all the information you need to read through this once. If anything is missing – just let me know. I have a huge folder and a thick Excel sheet here :-)
 

perlenmann

2011-09-19 14:38:14
  • #2
Hello,

you have forgotten/underestimated an important point. The additional costs! Search in the forum for a breakdown by Bauexperte. You have not included the water/gas connections etc. here. Only notary + property transfer tax
 

Kasper81

2011-09-19 18:53:20
  • #3
Basically, your calculation looks very good. You can only be told 1,500 euros/sqm if you specify the region where the whole thing is supposed to take place. Real estate prices vary significantly across Germany...
 

der-snert

2011-09-20 09:43:43
  • #4
The construction site would be in the Lower Rhine near the Dutch border. 47xxx ZIP code.
 

Jimmy80

2011-09-20 15:56:02
  • #5
I would say the price is okay for the regional area. However, I am not an expert in this field, but merely speaking from experience.
 

Similar topics
03.04.2012Buying a house without equity?29
01.05.2013No equity / existing consumer loans / financing possible?11
28.05.2013I am getting a plot of land as a gift. How do I finance the construction?16
24.04.2014Desire for the house (but uncertainty)10
11.02.2015Cost planning for a single-family house including land, additional costs, architect32
16.02.2015Property purchased - Is financing/loan for house possible?13
21.02.2015Impacts on loan when equity is in property17
15.06.2015Property and additional costs - is the construction sum realistic?16
02.02.2016It doesn't work without equity - experience!109
10.04.2016Property as equity? Living costs with children?19
21.04.2016Is financing with land and equity possible like this?20
25.05.2016Financing without equity - Repayment / Interest63
11.03.2020Land as equity capital - Worth the wait?10
24.05.2020New construction with existing land12
05.08.2020Financing without equity except for land - Bavaria13
07.11.2020Notary contract land inspection: should it be done or not?24
28.11.2020Expensive plot + single-family house 155 sqm + cellar KFW40+, financeable?60
06.03.2023Pledge existing property to increase equity?13
21.01.2025Prefabricated house and land calculated - under €600,000?25

Oben