Buying a semi-detached house from a property developer

Hello!

I am completely new here in the forum and have my first question right away. :)

We want to buy a semi-detached house from a developer.

We have an appointment tomorrow to discuss the exact costs.

House (basement + ground floor + attic 120sqm usable area, Tuscan style, Kfw 70) on a 330sqm plot.

Costs: €282,000 + costs for central ventilation system + additional costs (land, since we are buying that and then basically commissioning the construction company).

Our income (net):

€2,500 + €750 + €184 = €3,434 per month

In addition, there is a 13th salary from my husband + bonus payments of 2-3 salaries per year.

Equity: €53,000, of which we want to reserve about €6,000 for furnishings etc. (Another emergency fund of €7,000, which is not used for the house, is not included).

I have huge respect for these huge sums and am afraid that we might overextend ourselves. :confused::(

What would you say? Is it a feasible project?

We would get money from the bank, but probably almost anyone would at the moment...

Oh dear, this became a bit longer. :D Looking forward to opinions, advice, etc.

Yours, Sarasota

Hello Sarasota,

first of all, you need to know how high the total costs actually are and whether the costs are realistic.
Is it really a developer, i.e. you are buying the land and house from the same company or the seller of the land and the construction company are economically connected? Then consider that you would have to pay GES on land and house.
Could additional costs arise? Is there a soil survey?

I consider €6,000 as a reserve for furnishing to be tight, depending on what is actually needed. I would definitely choose a higher emergency fund as well.

On the topic of financing:
As you already correctly say, the bank would probably give you quite a bit of money. Again, the question is how much would need to be financed.
What matters less is what the bank says, and more what you can realistically and in good conscience afford.
In my opinion, you should answer a few questions yourselves:
- Family planning completed? If not, how does the woman’s income develop over time?
- What are your expenses? A household budget always works well here, where you also enter things that don’t come monthly but maybe only yearly.
Always keep in mind the (usually) higher additional costs that come with a house as well as reserves for later repairs/renovations.
Also remember that children become more expensive the older they get.

These are just some initial thoughts.

I can understand that you have great respect for such a large amount. Financing should therefore always be structured so that YOU can still sleep peacefully. Therefore, you should consider what risk you are willing to take or what your need for security is. Most financings carry a certain risk. Which risk can you live with and which would be too risky for you? -> Should the financing still work if there is only one sole earner, what happens in unemployment, illness, etc.; but only you yourselves can know that.