Construction Financing - Is my financing plan realistic?

Hello A,

maybe I see it a bit more "entrepreneurially" as a founder coach, but ultimately you have a goal that needs to be achieved.

That means you need a financing and project plan.

In order to know what you can realize, you first need a goal definition. That means what you want to build, roughly how many m². Then you can set about 1200-1500 € plus additional costs as a standard.

The basement will probably be on the scratch list.
You will probably only be able to meet the Energy Saving Ordinance at first, or reach Kfw70 with a few calculations.

For the shell construction, you can set about 400-500 € / m² proportionally.
The question here is whether you might go for a timber frame construction.
You can also possibly have it provided cheaply. In any case, you won’t save much on the shell construction and you are better off in terms of thermal insulation.

The interior finishing is crucial, here you have to concentrate the own contributions.

So an exact breakdown of who can and wants to do what!
What the relative wants for it... I have already experienced the most amazing things there.

What about your friend? How can he contribute?

What should be realized in what time, i.e. how high is the capital requirement within which period? (Milestones)

Recently I had builders where only one income and children were the basis. In one case, however, it was a craftsman who also builds over several years, in another case she was in the public sector and he was unemployed, so it was really almost only about building material prices. The house was built in 2 years, however with a very high proportion of artisanal work by him.

So many things are possible,...

Best regards

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The construction manager should preferably be an engineer!

Hello A,

then concretely:

Who paid for the property, Mom, Dad, Grandma, or did you pay cash from your own money? If you didn’t pay for it and it was a gift, where is your equity? If you had been setting aside 600-700 € every month for the last, say, 5 years, as you can do without any problems, there should now be about 50,000 € in equity with interest, right?

If that’s the case and the equity is not there, you probably won’t be able to save 600-700 € in the future either if it hasn’t worked out in the past.

Who will pay the 1000-1200 € installment for your house when, as you yourself write, you want children in 2-3 years?

The 260 € rent you pay now might just be enough for the additional costs like electricity, water, sewage, heating, taxes, insurance, etc. for the house.

So there is a monthly rate of 0 € available for a house repayment :eek:

If my assessment is wrong, let me know ;)