Construction financing: Do the numbers fit?

Hello,
my wife (32) and I (36) are planning to build. We have made a first rough calculation and I would like to ask you to take a look at it.

Our current net cold rent is 1,385 euros, we are both civil servants and have a monthly savings rate of about 1,900 euros.

We are currently in talks about a building plot with 815 square meters, fully developed, street new, no trees or hedges. The land is supposed to cost 165,000 euros, with all additional purchase costs I expect 185,000-190,000 euros.

For the house we aim for about 190 m2. The current figures from our federal state say: 319 euros per cubic meter built. I estimate 350-360 euros for around 1,050 m3.

The plot has a slight slope, which is why the house (solid) should have a basement/cellar and additionally a garage.

I assume the following costs:

190,000 euros land costs
30,000 euros architect, building permit etc.
20,000 euros structural engineering, construction management
20,000 euros garden
20,000 euros ancillary facilities (fence, garden gate, paving)
40,000 euros incidental costs and buffer
360,000 euros house
------------------------------------------------------------------------
680,000 euros

We have equity of 230,000 euros. That leaves a loan of 450,000 euros. Would about 2.25 percent interest be realistic? I plan to have a residual debt of 50,000 euros when I retire (my wife will still work for 4 more years and by then various investments at the bank will mature for payout of over 180,000 euros). That would be about 1,600-1,700 euros per month. Is that somewhat realistic?

Is the basement included in the 190 sqm, or is it additional?

Best regards
Sabine

He is included there, because due to the slope, there will also be rooms with natural daylight at the front.

House price with architect/construction management and the 40K€ incidental costs totaling 450K€ could be about right. Does the basement come on top of the 190sqm or is it already (partly) included? If additional, I would feel it should be a bit more. What kind of equipment, especially technology (controlled residential ventilation, photovoltaics, ...) or KFW standards?

Would around 2.25 percent interest be realistic here?

For what term?
But yes, you apparently come under 80% loan-to-value, currently you can have, for example, 25 years at DEVK at 2.12% nominal interest. 20 years at banks 1.9-2.0%. For civil servants, a look at BB-Bank can also be worthwhile.
But of course everything is fluid, better to calculate with more. It will still be a few months before you want to finance concretely.

450,000 Euro loan is quite substantial and then paying it off until retirement. I wouldn't want that. Have you ever thought about building smaller and cheaper?

House price with architect/construction management and the 40,000€ additional costs totaling 450,000€ could be about right. Does the basement add to the 190 sqm on top or is it already (partly) included?

The basement is included in the 190 sqm, otherwise it would be too big for us.

A 450,000 Euro loan is already hefty and then paying it off until retirement age. I wouldn’t want that. Have you ever thought about building smaller and cheaper?

Yes, but out of the question, because nothing adequate would come out of it. We currently live in a very spacious and well-equipped penthouse apartment (first occupancy) over two floors with 130 sqm, and even this is slowly becoming too small for us.

Honestly, I also prefer to pay the bank for the next 30 years rather than to a landlord until the end of my days. Our current apartment would – without certainly coming rent increases – cost 500,000 Euro in cold rent over the next 30 years. For me, there is also the aspect of retirement provision. I have to continue paying rent unchanged in retirement, and little retirement pay is taken into account. I recently calculated it. My wife and I earn well as civil servants and will also receive a good amount in retirement. But if we want to continue paying rent in retirement and still have enough for the rest of life on the side, we would have to set aside around 300 Euro per month for later from now on. Therefore, I come to the loan installment of about 1,600 to 1,700 Euro per month (cold rent plus savings).