Construction project 400k: How much to add floors?

TSK is just ridiculously expensive.... Michendorf? But even there the price per square meter of building land is already 200€. On the other hand: That’s in the outskirts. It doesn’t matter how much debt you take on. In 10 years the place will be worth at least double, and the parameters shift accordingly at the follow-up financing. And even if not, as soon as the house is finished, you can come out of it with a profit. Under similar conditions (80k equity) we’d put up a house here for 3/4 million... relaxed 2000€ installment... In 10 years you will be paying about the same for your rented house, and after 12 years my installment will be lower than comparable rent...

In my opinion, the ratio of plot to house does not fit either. The plot is extremely expensive at over 200k, the house at 1600 euros per m² is only an absolute low standard or only half-finished (I guess a combination of both!). Would it be an option to buy a plot a bit further outside, which costs 120 to a maximum of 150k? How big is the plot anyway? Could it be a size smaller? There is certainly nothing more to get out of the house, you will probably have to add about ~50k for sampling and services that are not included in the price.

How large is the property? Perhaps there is still the possibility to divide it? Semi-detached house on the property?

Thank you very much for the numerous responses so far. I will try to address the points mentioned below.

Hello,

does that mean 400k (190k for the house and currently 210k for the land including all incidental costs, which is not enough?)

Our concrete fixed offer including incidental costs with real land was 450k total. How much will actually be added, I cannot really predict in advance.

52k pA gross or net? with net it would be 4333 per month with 400k financing, yes rather more.

You have to decide for yourselves whether to throw yourselves into the project. For the bank it will be feasible

Net and increasing. Why throw ourselves, is the volume beyond our means?

With 4300€ net in my opinion you should not finance higher. Rather then reduce the house standard or the plot size. And try to get a plot from the municipality so that you only pay incidental purchase costs on the land.

Unfortunately, nothing is available from the municipality.
The house is basically standard equipment with few extras. Due to the city’s requirements, almost all plots are 600+ sqm.

I explicitly emphasize not knowing the construction prices in the north, but a house for 190k is maximally possible in a cheap standard. That is not bad but you should be aware of it.

And the calculation would then be at least 190k house + 210k land + incidental costs for construction and land purchase.

So it already approaches 450,000 EUR I would say. Your equity is practically zero, because the 30,000 EUR will probably go towards kitchen, furnishings and other smaller expenses.

Don’t forget outdoor facilities either!

I agree. However, we hardly need any furnishings because it is fully equipped.
Only the kitchen, painting and flooring work will be done on our own.
Outdoor facilities will be left aside for now or created by ourselves.

The construction costs are very, very low. What is supposed to be included, how big? Incidental building costs, outdoor facilities, parking space?

Also, you don’t repay 400k with 1400€ per month in 30 years. You probably ignored the interest.
For example, at 2.3% interest, 30 years fixed (which is very optimistic because equity is near 0, realistically it would be rather 2.8% and more), 70,000€ residual debt remains with a 1400€ rate.
You can choose shorter terms but even with 20 years fixed interest 1400€ is just barely at the 2% minimum repayment rate expected nowadays (and does not lead to being debt-free after 30 years).

In my opinion, therefore, two factors are still not correct. On one hand the house price, which I consider unrealistically low. On the other hand the assumption of how much credit one gets for the targeted rate with virtually zero equity.

As a guideline, we calculate with 1500 EUR. Additional repayments are also to be made from savings.
What alternative calculation do you suggest regarding the rate or total volume?

Just something to think about. With a loan amount of €450k over a 25-year fixed interest period and 2% repayment at current conditions and 100% financing taking your construction location into account. Nice is something else!

Hello,

we took out a loan of 400k last year, pay 1,400 euros per month, and are calculated to be finished in 30 years. Due to your low equity, the conditions are different for you: firstly, you won’t get "our" 1.55% because of the higher loan-to-value ratio, and secondly, the overall project won’t be feasible with your budget. The missing floors, kitchen, painting, and outdoor facilities won’t be done on the side cost-wise.

If I were in your position, I would get offers for around ~450k with a 10-year term. Only poor people and those who can’t do the math need 25 years. Maybe you’ll be lucky and get an affordable offer from your house bank. If not, you’ll probably have to save more or look for a "cheap" plot of land.