Construction of a terraced house

Good morning everyone,

My wife and I, both 30 years old, want to start building a terraced house in the near future.
A plot of land (fully developed) in BW is available and is currently being financed.
The building should be completed by 31.01.2022. We have already obtained two offers from the region and are actively obtaining more.

I like to read in the financing section of this forum and have to say that it makes me doubt whether we can even afford what some people here worry about.

I would like to hear your opinion about our situation...

Both in permanent employment, one of them in the public sector.
Household income together 4500 € (tax class 4/4), holiday and Christmas bonuses are added.
No children, but planned. (With parental leave household income 4000 €)
Loan for the plot 400 €, otherwise no other loans running.
Currently no rent burden, which will remain for now.
Current equity 30k € (savings passbook), growing with a monthly savings rate of 1500 €.
20k € already in the plot (remaining value after fixed interest period 100k)
Construction costs including incidental construction costs from the offers 360k €. (Living area approx. 165 sqm without cellar)
In total, we need a loan of about ~450k €.
We both come from simple backgrounds and have no expensive hobbies etc., which means we want to repay the house calmly and without pressure.
We have already met with our banks, and they see no problem.

But still, we would like to hear your experiences and opinions?

Greetings from the South

Welcome,

I have a question right away. Income 4500€ + holiday/Christmas bonus, no rent

Expenses 400 euros land installment, no rent

Savings rate only 1500€

What happens with the remaining 2600€ each month? In my opinion, that does not align with the statements "no expensive hobbies" and "we come from simple backgrounds."

Or is the 4500€ gross and not net?

Best regards rtr

Interesting to know is what happens after parental leave, what income there will be then. Basically, you finance the property and are basically tied to your bank.

Welcome,

I have a question upfront. Income 4500€ + holiday/Christmas bonus, no rent

Expenses 400 euros land repayment, no rent

Savings rate only 1500€

What happens to the remaining 2600€ each month? In my opinion, that does not match the statements "no expensive hobbies" and "we come from modest backgrounds."

Or is the 4500€ gross and not net?

Best regards
rtr

Sorry, it should have said 2500€.
The household income refers to net.

It is interesting to know what happens after parental leave, what income there will be then. Basically, you are financing the land and are practically tied to your bank

The plan after parental leave is that my wife will go part-time (60-65%) and we will then remain at the same household income level (~4000 €).

Thanks and regards

So once again: You now have a net income of 2500€ as dual earners, which is reduced in which direction when there is a child?

Are you both working full-time? Something doesn’t add up!

Or is the savings rate 2500€???

You can now take your correction of 2500€ for everything...

Sorry, sollte 2500€ heißen.

How is the property financed and what did it cost?

I understand the 2500€ as the current savings rate, right?