Construction financing possible for young civil servants

I have included allowances in the stated salary. We in the household emergency state of Bremen still actually have the Free Health Care (complete).

Does it make a significant financial difference if I move into a larger apartment where the cold rent cannot be saved? What is currently the best way to save equity? I probably shouldn’t expect a return of over 1%, right?

If I were to buy an apartment now (with at least 3 rooms), and say in about 5-7 years I then want a terraced house, would the apartment then be a big burden? Of course, it can be rented out, but that always involves a risk. I think a sale is not profitable after such a short period, since the incidental costs like broker, notary, etc. weigh too heavily, right?

Where do you see the additional costs of €50,000? I am aware that a kitchen still needs to be bought and floors and walls need to be done. But I could manage this myself with the help of relatives; I wouldn’t come close to €50,000 there. I have also, for fun, already looked at and configured a corresponding house.

I really don’t have to worry about the transfer here; this point is off the table.

A sale can be profitable if the location is right and there is an increase in value. But that depends. I don’t know how the market in Bremen will be in 5-10 years. But a friend bought an apartment in the Stuttgart area, pays less off than she used to pay in rent, and by now the apartment is also worth a bit more. So she hasn’t lost money in the last 5 years.

Okay, so police officer. The question is, will you always work shifts? I would only include the base salary in the financing and see the shift allowances etc. as a nice extra.

The apartment would, of course, also be a way to save equity, namely in the form of the saved rent. Otherwise, best a savings account, some part e.g. in index funds or speculate a bit on the stock market yourself, but that only works with play money and accordingly time and interest to get into the topic and even then you can fail. A few monthly invested mutual funds with low front-end load are not the worst, plus a small home savings contract for the advance and bonuses and possibly a Riester contract, but you should get advice from your trusted bank for that.

Otherwise, there are currently few options.

And regarding construction costs: Read through the forum a bit here and open your eyes. Building is damn expensive, you can’t put it any other way, and it’s getting more expensive, all the builders here can confirm that. But what good is a terraced house if you/you all don’t use half of the space?

I would only want to live in a central, sought-after location anyway - otherwise the risk of not being able to sell/rent the apartment later is simply too high for me. Unfortunately, this quickly results in prices over €2000/m² - which I find quite expensive. And these are not new buildings but properties from the 60s. With some luck, the energy efficiency at least does not fall far outside the norm.

Correct. It probably cannot be avoided for now :P but it is initially desired by me as well. The later elimination of part of the allowances is compensated by the age brackets.

I am already working on it, but I find that most builders want to build single-family homes. This always represents a greater risk than a terraced house from the developer, where the costs are notarized. Or have I overlooked something? Are there any other risks?

70m² and 3 rooms would be the lower limit of the desired apartment. The mentioned 126m² would certainly be a bit too large, 100m² would suffice for now (in a terraced house). But half of the space would by no means be unused. The current apartment is clearly too small - my girlfriend doesn't even have her own wardrobe, desk, etc. Since we like to cook a lot, the kitchen is also far too small.

a terraced house from the developer, where the costs are notarized fixed. Or did I overlook something? Are there any other risks?

Hello Entente,

I’m from the same city as you and have already bought a terraced house from a developer

If you buy a terraced house from a developer, pay very close attention to the construction description. The purchase prices are notarized fixed prices, that is correct. The incidental building costs are also already included. But usually, the prices only cover the minimal equipment.

Too few sockets, tiles often only 20 - 25 euros per sqm and just laid straight. As soon as you want a different laying technique and/or borders/mosaic or something similar, that will be charged extra! So you will almost certainly have additional costs for electrics and possibly tiles. Usually, the parking space or garage is not included in the price and is charged separately.

The developers have lists of possible special requests (underfloor heating, different stairs, possibly attic conversion or a shower in the bathroom in addition to the tub etc. pp), have them handed over to you beforehand and check if there are things on there that are important to you and add the costs.

Not to forget the outdoor facilities. You don’t just have to do the flooring and kitchen inside the house. The terrace and garden also need to be laid out outside. Depending on the plot location, a sunshade might be necessary, otherwise it gets really hot (with south-facing plots).

The advantage of a new building from the developer is of course that you have a 5-year warranty on the house, it has good energy values, everything is designed the way you want it, and you don’t have to pay a commission.

Also consider that you have to pay 5% property transfer tax on the total purchase price and about 2% for notary and court costs.

Otherwise, I can only report positive things, everything went really really well with us back then! Any defects (window didn’t close properly, floor tile in the bathroom was scratched, just little things) were fixed immediately! I sold the house last year at an amazing price

Best regards

Hello,

The equipment is already included (e.g. guest toilet). Parking space and paved terrace are also already included. The point about the electrical equipment is good, I hadn’t thought about that yet. Thanks!

The tiles are also included, do you mean that they are of very poor quality for this price? Or is it just the appearance?

As I said, special equipment is already factored in.

Since you’re mentioning the good energy values – I read a lot about KfW loans. I don’t quite understand that yet. If the house meets certain requirements, do I get discounted loans from the KfW? Is it worth it? What else should be considered?

I’m also always looking for condominiums in parallel. Unfortunately, for all of them (except 2 exceptions) the price per square meter is significantly above the new build. The prices that are sometimes asked there are really cheeky.

The conditions are good, however I am not sure if a bank will finance a large amount since you are still on probation.

I would check that now, as the planning might possibly have to be postponed until the probation period has been passed.