Construction financing - what can we afford?

Profession: I don't want to post that publicly"

Do you look at forum rule 1.2. Or, as an admin writing here on their forum writes "Stating your profession in the profile is mandatory here. Without it, you are not allowed to participate."

Rhenish greetings

so when I read some comments here I wonder why some of them have a house ....

if you have fixed on a property like you and ALSO definitely want to build there then I would do it just like fdebf suggested. Buy the property, then no one can take it from you, push the repayment of the property so you most effectively increase your equity which makes the financing cheaper in the long run. Plan 2-3 years and then start building. It has enormous advantages to approach the planning and implementation with a lot of lead time, especially with such difficult conditions that the property has.

just my 2Cent
Thomas

In my opinion, you should take on the project. The financial situation looks very good and you already have two cost estimates. From your explanations, it is clear that you are very engaged with your financial situation and I don’t see any “major” cooking of the books.

The only concern I have is the low equity.

I would do it as Fdebf suggested, if there is no short-term pressure to build.

Because it is your dream property, secure it and then calmly do the detailed planning. Before that, possibly wait for the third architect to see what he says about the costs.

Does it really have to be 170 sqm plus a basement (or is the basement included in the 170 sqm)? I think you can definitely save quite a bit on the house if the costs unexpectedly rise after three estimates.

If everything goes wrong, it is certainly not impossible to resell the property without huge losses; possibly the ancillary costs are lost, but that is the tuition fee you have to pay.
It won’t ruin you.

Equity and Loss of Earnings
The loss of earnings will amount to a total of 2 years, that is 24 x minus €1,479.37 = €35,504.88
The available equity will be reserved and used for this --> €35,504.88 - €27,500 = €8,004.88
This almost €8,000 will of course increase if my better half stays at home longer (this is not planned) or has to do so out of necessity.

A few points occurred to me:
- As a small "trap," I can mention that the second child should come immediately after the first parental leave – then the net income before birth is used. But this is quite difficult for most.
Otherwise, the net income of the previous year is normally taken, and that can be significantly lower if parental leave or even part-time work was taken.
- An advantage for civil servants, in my opinion, is that full pay is paid during maternity leave. Maternity leave also lasts longer, in my opinion.
- For the tax return, daycare costs can be deducted. That also brings some benefit.
- Personally, I would reckon with 18 months after birth and not full-time. Taking the child to daycare steals a lot of time, and teachers have no flexible hours but do have conferences. So possibly early shifts, late shifts? Additional costs?
From about 70% working time, the part-time exemption applies. How is it with you regarding all-day school?
If the woman returns earlier than 18 months, there is a plus – if not, at least there is no problem...

10 days

But that only applies to us dear statutory insured – and civil servants in parts. Privately insured children do not offer such a luxury at all.

So my girlfriend (special education teacher, civil servant) just told me a few days ago that she has up to 10 days of special leave per year for a sick child.

Regards,
Christian

As a small "trap," I can point out that the second child should come directly after the first parental leave – then the net income before the birth is used. But that is quite difficult for most people

It is also sufficient to become pregnant in the fourth month after the birth of the first child, because parental leave is a deferral condition just like the 6 weeks of maternity leave before the second child. Each further month later reduces the credited income by about 1/12. Whereas this calculation is based on the old parental allowance. I have not yet looked at how the deferral conditions look under Elterngeld Plus, whether the Plus months are also considered deferral conditions. Because before, even with halving the parental allowance, the reference period was only the first 12 months.