Can we afford the solid wood house KFW70?

Received an offer from the bank for 1,455 euros with the following breakdown: 335,000 at 3.07% = 1,275 / month for 25 years 50,000 KfW at 1.60% = 179 / month for 10 years

The KfW loan therefore disappears again after 10 years.

Such a KFW loan does not exist. Either 10 years term with full repayment at currently effective 1.71% interest = rate 498 €/m. it then disappears after 10 years. The repayment rate you specify for KFW indicates a 30-year term, with an interest lock-in of 10 years, the interest rate 2.2%, rate would be approx. 195 €, remaining debt approx. 38,000 €. With your other loan, there is still approx. 150,000 € remaining debt after 25 years. For me, the loan conditions are not realistic given the framework conditions, equity and income situation. I would advise against the company Hausbau in this form.

Current expenses:
Total GEZ, all insurances, retirement provision, mobile phone contracts for both / month: 470
Car fuel costs: 200
Additionally, there are living expenses + of course the ongoing costs for the house

Costs for the house purchase:

We are estimating a monthly installment of about €1,455.

What is your assessment of the financing?

Thanks for your feedback

Peter

Hello Peter,

So you are calculating with a salary of 3000 euros every month, then pay 1455 euros house installment and have additional costs of 470 euros. For the car you calculate another 200 euros for fuel. That leaves 875 euros remaining. Have you also considered electricity, gas, water, chimney sweep, property tax, car tax and inspection or repair costs and saving for a new car? You also haven’t eaten or drunk anything yet. Furthermore, you always have to buy quite a few things for the house (from the lawnmower to fertilizer, garden furniture, etc.), that sometimes never ends. Children are also very expensive (diapers, food, clothes, toys, kindergarten, etc.). Personally, that would be way too little money for me, I would rather plan a small house with simple equipment, maybe so that it can be enlarged and changed later on.

Best regards
Sabine

Hello everyone,

thank you again for your answers and opinions.
You are all right, financially it will certainly not be a walk in the park.
However, we are aware of this and know what is coming our way.
Currently, we are already paying about €1300 warm for rent (about 100m²) and manage very well with that.
Surely a house will bring higher costs, and the monthly repayment costs of €1455 also include ongoing energy costs, garbage collection, etc.

However, I do not see any reason to keep renting for years and throw money out the window.
My girlfriend was gifted the building plot, and in my opinion, right now there is no better time interest-wise to build a house.

As I’ve already written, I will inherit real estate in the foreseeable future, a total of two houses and one apartment, which will certainly be worth €500,000, so we will tackle the house building project now.
We could also wait and build in 10-20 years. But our NOW exists and not in 20 years.

Construction costs are also rising year by year and it won’t get cheaper.
Since we will only build once, we will not make any compromises in terms of equipment.

I can understand some comments from you very well, others not at all.
For example:

Ich will dir ja wirklich nicht den Spaß nehmen, aber :
3000,00 € im Monat für zwei Personen + Kind, 1.500,00 Tilgung ( was auch nicht reicht ), wohnhaft im Münchner Vorort mit "bekannt günstigen Lebenshaltungskosten" und dann glaubst du auch noch an Sondertilgung ? Entweder du hast noch Einnahmequellen, die du uns verschwiegen hast oder es geht echt ins Auge.

--> I never claimed that I "believe" in special repayments. I said it would be nice... However, I am aware that it will be difficult.

Jetzt ist aber noch kein Kind da und deine Freundin hat noch volles Gehalt. Und auch noch keine neues Haus, wo dies noch fehlt und das noch müßte.

--> We both have €4000 gross monthly with full salary. The €3000 is already calculated including part-time salary.

Wir haben im Münchener Umland (noch so gerade mit MVV-Anbindung) 350,- € / Monat für einen Krippenplatz bezahlt. Meine Kollegin in München hat 800,- € bezahlt.

--> I never said that we would put the child in a nursery. My girlfriend can work part-time. During the rest of the time our child can be looked after by 2 grandmas. Also, part-time can be arranged due to shift work so that someone is there in the morning and someone in the afternoon.

Mich wundert, dass ihr eure Finanzierung auf beide Einkommen plant. Meines(laienhaften) Wissens nach, sollte es über ein Einkommen abgedeckt werden um spätere Veränderungen mitabzudecken.
Deine Freundin vllt länger zu Hause bleiben muss bei den Kindern oder so

--> It would be nice if the financing could be covered by one income. But it doesn’t work. My girlfriend cannot stay at home alone either; she has to work at least part-time. We are also aware of that and do not see it as a problem.

There is also child benefit, and if we get married, there will be more net income again.

Thank you very much
Peter

You shouldn't always let yourself be talked down. I know people who got a construction loan without equity, even with a car loan, and still managed to live quite well. As in the case of the OP, I don't see any problems. If everyone had to be cautious, then no one should build. Of course, it's a bit premature to say "in 10-20 years I'll inherit," but I wish you good luck.

We only build once,.... Sorry but that's why you still aren't a millionaire. Realism is good when building a house. Yes, you will make it, but only if you stay humble. Then the bathroom just won't have granite, the blinds only manual, etc., but you can sleep more peacefully because of that. You have to know how much you WANT to dare.

I wish you luck that it works out, even though I personally would have calculated it a bit differently and find the calculation tight. The inheritance will probably catch you in the worst case. The rent you are paying now is just as much throwing money out the window as the upcoming interest.

We will rather handle it so that we have a buffer for contingencies in the end; otherwise, the surplus will flow into special repayments. It is also a matter of perspective. We are ready for compromises (which should actually be obvious), but a tight calculation can be burdensome in the long run. One should just not almost shut down the life of a house.

P.S. I found it very bizarre when I first read here in the forum that future child benefits are counted as income. Now I just smile about it. And in a few years, you will do the same and never write something like that again.

One should not always let oneself be discouraged. I have acquaintances who got a construction loan without equity, even with a car loan, and still manage to live quite well. ...

It can work out well, but unfortunately often does not. Unexpected events get in the way, which sets you back a few years; then there are increasing conflicts about the unsatisfactory standard of living, and then everything takes its unwanted course. Not everything is always foreseeable. Otherwise, it would be too easy.