Construction financing: Implementation, detailed data available

What I notice:

1)

Own contribution - €30,000:

[*]€12,000 kitchen
[*]€3,000 painting & filling work
[*]€5,000 floor coverings
[*]€10,000 reserve

The kitchen is not included in the bank’s loan-to-value ratio anyway. The other amounts; are those pure material costs or do they already include labor costs? If not, did the brokers include them? That might help to reach the next loan-to-value zone.

So, off the cuff, you are at 93% because kitchen and ancillary purchase costs are definitely excluded from the calculation if you take the values as pure material costs.

Or what loan-to-value ratio did the brokers calculate?

2)
Why do you need €10,000 less at Dr. Klein than at nowoFinannz?

3)

€4,800 earthworks

Have you already had a soil survey done, or is that still pending?

€4,800 sounds very optimistic.

As far as the financing itself is concerned, you have already received some tips.

We have pretty much the same numbers as you, both in terms of income (4500) and equity (85000), and our child was already there. For us, it was associated with too much calculating. We like to live in a way that we don't have to turn over every cent, and that probably wouldn't be possible with financing of that size.

Absolutely not to be neglected are the care fees for the child/children (we pay 310 euros, but I have also read significantly higher amounts here).

If one earns less, the whole structure wobbles, doesn't it?!

In the end, we decided on an existing property built in 2007. We repay the financing with 4%, which one of us alone can also bear.

So unless you get gifted another 50-80 thousand euros, I would consider that too tight a calculation, because with a construction project, few really pay what they initially thought.

In any case, I wish you all the best, also for the upcoming marriage.

: The 1.83% was the daily interest rate (06.03.) at Commerzbank.

: You are of course right about that. [emoji6]

By the way, the conditions would deteriorate significantly without KfW.

Thank you very much for the information

Does that mean the KfW loan was counted as equity with you? Are you building a KFW 55 house?

: At least we have planned a KfW55. I don't think the KfW loan was counted as equity. I just think that the interest rate changes accordingly due to the higher risk for the bank.

We bought and financed in 07/2016. For us, it was rather the case that if we had taken KFW, out of 50,000 €, the conditions for the bank loan would have been worse.

The interest rates then always rose in such a way that the extra cost was the savings compared to the KFW interest rate.

But I would not consider the KFW in your mentioned suggestions. Rather, look for a bank that offers the entire amount at a lower interest rate.

Commerzbank seems to be very aggressive at the moment. What are your plans with child(ren)? Does your wife work 50%? What additional burden is there, how much does she earn and you?

4,400 doesn’t sound bad, the question is what kind of net income there is with children...

To answer the question, we made the following calculation. It should be noted that in contrast to the breakdown in the first post, savings (building savings contract €50, retirement provision €150 each) have already been included or deducted in the personnel expenses.

Currently - tax class 1/1 or 4/4:
€4,400 net - €874 - €1,003 - €776 = €1,798

Income - personnel expenses - household - rent including utilities = surplus

Preparation child with house - tax class 5/3:

€4,400 net - €874 - €1,003 - €350 - €1,200 = €973

Income - personnel expenses - household - ancillary house costs - loan = surplus

With 1st child (parental leave 24 months) - tax class 3/5:

€3,400 net + €192 - €874 - €300 - €1,003 - €350 - €1,200 = -€135

Income + child benefit - personnel expenses - child - household - ancillary house costs - loan = surplus

With a second child directly after the 24 months parental leave, the calculation looks even worse, as my girlfriend/wife would then only receive the minimal amount of €375.