Construction financing on a solid foundation?

  • Erstellt am 2014-10-26 22:49:27

Musketier

2014-10-27 13:13:37
  • #1
I suspect that with a €1000/month rate you won't quite make it or the 2% repayment does not fit. Roughly calculated, taking into account the 2x €50K KFW, the rate is €1100-1150.
 

Bauherren2014

2014-10-27 13:42:08
  • #2
With the computer's effort, I dare to claim that you are only just above 1% in repayment.
That means you will pay off your loan over 40 years.
Accordingly, I also consider €1,000 for repayment to be too tight.

Special repayments are nice and all, but can you be sure that you will be able to make them regularly? Additional costs will always come up, whether it’s something with the house/a new car... children grow up and if a third one comes...
Better to calculate somewhat more conservatively and see the special repayment as an add-on. If there is money for it, that’s good, but if not, it’s not so bad (at least that’s my opinion :-)).
And besides saving for the special repayment, don’t forget to also set aside reserves for the house.
 

Bauen2015

2014-10-27 13:44:03
  • #3
Thank you! Then it should be just under 2% repayment. My question is whether this loan amount is even manageable? According to the financial expert, yes, but better to check myself than just trust. In 3-4 years, we will most likely have over 5000 net with (let's hope) 3 children.
 

Bauen2015

2014-10-27 13:48:46
  • #4
If it is too risky, then we will leave out the cellar.
 

Bauherren2014

2014-10-27 14:23:50
  • #5


Unfortunately, no one can tell you that. From the banks’ side (which usually apply flat rates), it will certainly work. Whether it will work for you, only you can know. Therefore, you should ask yourselves:
What expenses do you have? Also those that do not occur every month, but only once a year. It is best to keep a household budget for a certain period of time so you know where your money goes. Also calculate with the expenses that will come when the third child arrives, when you need childcare for 3 children, etc. pp. Think also of additional insurances, reserves for the house (as already mentioned), a new car (if you depend on it, sooner or later a new one will come)...
How much do you save per month?
How secure are the incomes? Is the salary increase guaranteed?.....

You don’t have to answer these questions to us, but to yourselves.
Accordingly, no one can say whether that is too risky or not.
Personally, I find €310,000 quite a substantial figure with a sustainable income of €3,800 at the moment, but that is just my personal opinion and doesn’t mean you couldn’t manage it.
In my opinion, you should first look at how much you can actually afford, not just on paper, but based on your life circumstances. Maybe also consider consulting an independent financial advisor.

Only then, if in doubt, should you look at what things are really important to you and what you might be able to do without. Simply saying now: "Then I’ll just do without the basement," isn’t necessarily the most constructive suggestion. Because you probably had a reason to want to build with a basement, right?
 

Bauen2015

2014-10-27 15:23:54
  • #6
Thank you!
 

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