Construction financing - what can we afford?

Hello,
I don’t quite understand why you want to take out a [100,000 euro loan] for photovoltaic, garage, and outdoor area. For me, that would be way too much with such a huge total amount. You don’t have children yet, so I wouldn’t burden myself with such a large sum, but rather save first.

Best regards
Sabine

When I read through the initial post again, the costs are very unstructured or difficult to assess. Missing additional construction costs have already been mentioned.

Is the house move-in ready for 350k or only turnkey? Somehow I suspect that the 350k does not yet include floors, wallpapering, and painting work.

What kind of energy standard? KfW 55? KfW 40? +? (because 20k for photovoltaics has already been planned).

And alone 100,000 € for garage, driveway, and outdoor facilities? There could possibly be problems with financing because the amounts are set quite high.

Are you planning to do any own work?

And how will you pay for things like the kitchen?

don't forget the divorce!

Hi, maybe you should approach the whole thing a bit more structured. Have a general contractor or architect create a plan, especially with regard to the extreme slope location. In my opinion, the €15k for retaining walls is far from enough, and other items (as my predecessors have already written) are not necessary at the beginning. Once you have a valid cost overview (of course including incidental building costs), go to the L-Bank and inform yourself about the different funding options in Baden-Württemberg (especially Z15, as soon as a child is on the way).

Hello again,

first of all, thank you very, very much for the numerous replies. You really helped us with that, and meanwhile we are trying to approach the whole thing a bit more structured.

The following has happened:

We have meanwhile spoken with the municipality.
The land price is absolutely non-negotiable. However, the municipality has committed (in writing after the purchase commitment of the land, but BEFORE signing) to cover the costs for the removal and disposal of the grass and shrub growth (which is probably about 2 meters high) and for the retaining wall.

In the meantime, we have also spoken with two architects.
The first architect is building three plots next door (yesterday the excavator arrived and started with the excavation). The couple is building with similar ideas (he showed us the floor plan on site and explained it), so with 170m², a basement and driveway to the 2m elevated garage in split-level construction. All in all, i.e. move-in ready including land, incidental building costs, photovoltaics and architect’s fee, the couple comes to just under €600,000. Their plot, however, is 150m² smaller (so for us +€30,000). The building ground itself is soil class 6 and excellently load-bearing. According to his own statement, he does not need a building ground report, it would be wasted money. Except for this confusing point, a really very, very likeable person.

The second architect was recommended to us by the municipality itself. He planned a multi-family house on the first and second plot next door, which in a way could have been built at any time. However, the investor found no buyers, so had to discontinue the project and is currently trying to resell the plots.
That means this architect (both are actually retired for some time) knows the conditions on site very well. In a first phone call, the architect spoke this morning of a very difficult slope to build on (soil class 6 - he had a building ground report prepared for the two plots). It is difficult to assess where one will hit solid rock during the excavation (then chiseling would be necessary), so he expects additional costs for the excavation here that cannot be calculated in advance. Otherwise, we would have to agree (especially with regard to age) on the many stairs (just under 40 to the ground floor).
We have arranged a first meeting with this architect for next Friday.

We both have meanwhile created a floor plan, which we initially discarded again and again. Now we are at the point where we would like to present it to the architect.
We have discarded the driveway to the garage; instead, we would like to build the basement on the garage, then the ground floor stepped back to the rear and again stepped back the upper floor on top of it. Many stairs, yes, but later a small goods elevator (60x60x100) from the garage upwards, initially only the empty shaft (cost about €10,000).

Unfortunately, I don’t have a scanner here on site but will submit the floor plans the day after tomorrow.

Next Friday we have appointments with VR Bank, Sparda and Sparkasse. We now reckon with 2.5% effective annual interest at 2% repayment and 20 years term for €625,000. Added to this are almost €35,000 equity. There have been no talks with L-Bank or KFW yet.

Somehow we are currently oscillating somewhere between "We’ll try it!" and "Come on... let’s wait a bit longer before building!"

I think on Friday we’ll be a good deal wiser again...

Thank you very much for reading!

Crazy stuff... what people always earn. I always thought we weren't doing that badly. You have €25k equity with a necessary amount of €650k - phew. Do you dare to pay an installment of almost €3000? (would be 5.5%)