Construction financing single-family house - What is possible, what do you advise?

2019-06-30 08:39:26

165 sqm + basement (possibly as a granny flat) + garage as living space?

In my opinion, these are cost drivers that must be critically questioned. Is it really necessary in this size?
Who is supposed to live in the garage? Evil mother-in-law? Or does your Bugatti need a comfortable environment?

2019-06-30 12:35:36

Hello, if there are children, you will really have to stretch yourselves. Do you have chances to increase your salary? Does it have to be a cellar? It's an immense cost driver. 6k loan, I would inquire about repaying it early with possibly a discount

There will certainly be some increase in salary in the future. Currently, this is my starting salary. And hers increases every 3 years depending on the collective agreement. The mentioned salaries are the guaranteed minimum amounts without Christmas bonus, commission, etc. I want to use these as an additional buffer. Due to the conditions on the property, one will probably have to build with a cellar since embankment is hardly feasible. The BAföG loan can also be repaid in full at better conditions right away, but it is currently still interest-free, so I do not want to repay it just yet.

2019-06-30 12:40:06

The BAföG loan can also be repaid in full at more favorable terms, but it is currently still interest-free, so I do not want to repay it yet.

What do you mean by that? Have you already received a notice with a payment request, or are you still waiting for it? If you already have that, it should say how much you have to pay if you pay it all at once. How much do you save there? I would repay BAföG before you go into financing negotiations because they will naturally ask questions about such things, and if you can then say "BAföG loan has already been repaid," that looks better than if it is still outstanding.

2019-06-30 12:40:30

165sqm + basement (possibly as a granny flat) + garage as living space? Those are, in my opinion, cost drivers that should definitely be questioned. Is it really necessary at that size? Who is supposed to live in the garage? Evil mother-in-law? Or does your Bugatti need a comfortable environment?

The 165sqm living space is supposed to include the habitable roof of the garage. I’m thinking of a children’s room/guest room or something similar. Due to the property, I think the basement is more comfortable and overall probably cheaper. Property details in more detail: - Slope location where the street accesses the property at the highest point - From the street it goes about 15m back and about 3-4m down - Behind our property is a slope that drops relatively steeply --> Therefore the assumption that a basement is cheaper + easier for us to realize

2019-06-30 12:43:33

What do you mean by that? Have you already received a notice with a payment request or are you still waiting for it? If you already have it, it states how much you have to pay if you pay it all at once. How much do you save then? I would repay BAföG before you enter financing negotiations, because questions about that naturally come up, and if you can then say "BAföG loan has already been repaid," that obviously looks better than if it is still outstanding.

Yes, of course I have already submitted this notice.
The first installment must be repaid starting in 2022. Until then, I am completely interest-free.
A full repayment at once is, of course, sensible.
But since I am interest-free until the end of 2021, I did not want to rush until then.
A fully repaid loan naturally looks better for the financing discussion.
Good point. We will keep that in mind.

2019-06-30 12:49:29

Heyho, we are currently building in Brandenburg under relatively similar conditions. 1000m² plot with a 21% slope, house with 112m² footprint and a basement with living space quality open on the hillside, but without a separate garage. We can contribute relatively little personal work and if everything goes according to plan, we will end up with an all-in cost of about 600k just for the house. I estimate Bavaria to be slightly more expensive than BB, but maybe that is compensated by the personal work. What will definitely hit hard compared to our project is the extra garage (especially if it is supposed to be suitable as living space) and the land development. In addition, time is rather not on your side, as an ordinary person currently can’t save as quickly as construction costs are rising, which brings us to the topic of salary. For mid-20s, that is definitely quite decent, but I fear that considering the considerable financing volume, especially during the parental leave that will come up at some point, it will be financially quite uncomfortable. I find the building size appropriate; in my opinion, the project volume is at the upper limit of what is bearable. I would first recommend a condominium (especially if the plot is secure). Regards

Thank you very much for your experience report.

May I ask how old you are and what kind of financial framework you approximately bring into the construction project?

A condominium is no longer an option for us. Since this year, we have been living again in my parents’ granny flat (here we only pay water and electricity, about 80€ monthly). Here we also have the possibility to continue living for now. However, it will eventually become too small.

A loan would also be incurred with a condominium. We want to save the interest etc. here and invest directly in a single-family house.

I would appreciate your feedback. Regards

Similar topics
19.03.2014	Cost for a new single-family house, 2 full floors, without basement	18
02.07.2014	Realistic purchase of land and new construction of a single-family house & how to finance it?	20
03.02.2017	Single-family house 2 floors without basement - floor plan - costs - feasibility?	24
02.02.2015	Building with or without a basement - experiences	49
11.10.2018	Building without a basement - carport, garage?	18
30.09.2019	200m2 single-family house for 4-5 people without a basement on a narrow plot	67
27.06.2020	Level the basement or the plot?	43
27.01.2020	Building a single-family house with/without a basement on a small plot	65
19.10.2020	Street about 50cm above the property - backfill or basement	24
28.11.2020	Expensive plot + single-family house 155 sqm + cellar KFW40+, financeable?	60
12.05.2023	Detailed planning floor plan single-family house with basement and granny flat	28
23.01.2021	Wooden ceiling and partial insulation for basement with garage	15
04.03.2022	Property development - basement yes or no?	75
23.01.2024	Floor plan for a single-family house with 200m² with a separate apartment 75 + basement 140m² + garage 56m²	59
14.01.2023	Land available but only a condominium?	70
21.04.2024	Cost estimation per square meter of living area for a hillside house with basement and garage	87
09.09.2024	Floor plan design: Single-family house with basement; 560 sqm plot	65
18.04.2024	Floor plan design: Single-family house; with basement; 800 sqm plot	10
10.07.2024	Land financing, variable loan?	20
01.01.2025	Floor plan, house layout EFW 150m2, basement + granny flat - feedback desired	67

Construction financing single-family house - What is possible, what do you advise?

Jenpa

Andreas94

Yosan

Andreas94

Andreas94

Andreas94