Construction costs are currently skyrocketing

How would you react to your numbers if instead of liabilities you had savings? At some point, you have paid off your house or built it new without financing. Then you might still have savings, or like some home builders, you will soon receive the KfW subsidy 461 for your energy-efficient house. Hopefully better times are coming for savers.

Just as neutrally stated as I wrote it. We financed over 30 years at 1.45% and we have diversified our investments broadly. Since we partly have contracts with 4% interest credit, we did a 100% financing back then. Every month our reserves grow. Let's see whether we will pay off the loan earlier with this someday or be happy that we get interest credits that almost completely cover the loan interest already.

Just as neutrally stated as I wrote it. We financed at 1.45% over 30 years and have broadly diversified our investments. Since we partly have contracts with 4% credit interest, we made a 100% financing back then. Every month our reserves increase. Let’s see whether we will pay off the loan early sometime or be happy that we are getting credit interest that almost fully covers the loan interest now.

Congratulations on this approach. If your entire financing is covered by savings or investments, then you can sit back and relax.

Congratulations on this approach. If your entire financing is covered by savings or investments, then you can sit back and relax.

Not yet - but now well over 30% and something is added every month. If everything goes well, next year we will have more interest from savings than loan interest for the first time.

Did you then start construction in parallel? We signed the financing on 07/21/2021 (10 years at 0.96%). Unfortunately, it only started in November because the building authority needed not 6 but 9.5 months for the building permit. Of the €495,000, €350,000 have already been disbursed and spent. We will still draw the remaining amount before 07/21/2022 and start the repayment. I currently assume that the house handover will be between August and September. We will terminate the apartment by 10/31/2022.

Unfortunately, we had to finance long in advance. Financing signed 02/22, construction start 10/22. However, the building permit had already been granted in 05/21, so only an economic crisis could actually stop us from our project. But that seems possible on a daily basis these days.
Since the shell construction is known to be completed quickly, the larger sums are also paid at the beginning, so the commitment interest is hardly an issue. Of course, a construction period longer than 12 months would also cause extra costs for us that unnecessarily strain the budget, but if it comes to that, there is little one can do.

Unfortunately, we had to finance well in advance. Financing was signed 02/22, construction started 10/22. However, the building permit was already granted in 05/21, so basically only an economic crisis could still deter us from our project. But that seems possible practically every day. Since the shell construction is known to be completed quickly, the larger amounts also flow at the beginning, so the commitment interest is hardly an issue. Of course, a longer construction period than 12 months would also cause additional costs for us that unnecessarily burden the budget, but if it comes to that, there is little that can be done.

Why exactly did nothing happen for 10 months after the building permit? At the beginning, the earthworks and the foundation slab come first. If you’re unlucky, masonry work won’t start until 2023.

Why has nothing happened for 10 months since the building permit? At the beginning, there are the earthworks and the base slab. If you're unlucky, the masonry work won't start until 2023.

I explained that at length some time ago in one of my very first posts in this forum. In the "winters" here in the south, work has continued over the past few years. Even if not continuously, there are no construction sites here that have been idle for more than 1-2 months. As long as the basement is finished before the end of the year, I’m already satisfied. In the past, the general contractor completed such projects in 6-9 months, but nowadays 12 months are planned. If we move in before Christmas 2023, everything went well. If that doesn't work either, then we won’t be able to change it. That’s why I won’t let those “completion terrorists” get to me either :-D We’re just happy when progress is being made, following the motto: The journey is the goal :-)