Deferred Land & Single-Family Home Financing

Just stop it
Here shower tray, no air-water heat pump, no ventilation system and painting work done by myself.

I would also like the garage provider. Our double garage costs 30k....
Although maybe you should take a closer look.
The building shell is also "only" just over 13k for us.
Added to that are plaster, roof coating, electric gate plus motor, door, delivery
Then it’s already over 20k.
And then there are the earthworks, foundations, connection to drainage, power connection and it’s heading towards 30k
Is all of that really included?

To be honest - no idea - but I’ll ask all that in the next email, thanks for the hints!


Unfortunately, the home savings contract is disappointing with 0.5%, ultimately the capital-forming benefits are more interesting... I’m curious how the home savings advisor will want to "sensibly" include the contract in the financing - conversation still pending.
Riester would possibly only make sense to settle the residual debt (at an advanced age) so that the housing promotion account does not accrue too much interest - we’ll see what the banks & co say about that...
Solar thermal is not worth the effort since heat pumps also now heat domestic hot water well?
Towel heater would be (for me) the idea to heat the bathroom somewhat above the "normal temperature" of the underfloor heating - rather less useful?

And the accounts are set up once and the rest is done by standing order

Actually, everything has been said. Pay for the land with equity and continue saving until the house is built.
Paid-off land + further equity + own contribution = fantastic conditions like 0.5X % p.a. fixed for 10 years.

I think so.
EL=own contribution? Why do you recommend only 10 years at the current interest rates?

Is there currently the possibility to combine KfW and BAFA for a new build?

We will install a towel radiator before winter. The underfloor heating will keep the bathroom warm enough for us, but a warm towel after showering is quite a nice luxury. Our contractor would have charged 500€ for this "fun," which we didn't think was worth it. Now we paid 75€ for a socket in that spot and will install one ourselves for 200€. I wouldn't personally dare to have your outstanding debt for 10 years. 15 years shouldn't cost that much more. I can't estimate longer terms. You would have to compare the interest rates.

Basically, everything has already been said.
There was also a thread here where the OP had financed his plot of land 2 years ago and now wanted to finance the house. Back then, he could have paid for the plot directly as well.
He was completely shocked because he hardly found any banks that wanted to appear as subordinate entries in the land register. For many, that is a fundamental issue.
That greatly limited the options and therefore resulted in a worse interest rate.
In that thread, the unanimous opinion was that you shouldn’t do it for that reason alone.

[...] want to buy the house/plot of land about 1-2 years apart.
The background is a newly established development area; here we want to apply for an approximately 520 m² plot (about 320€/m² (Frankfurt outskirts)).

Sounds very cheap for the Frankfurt outskirts. If it’s similar to the Düsseldorf outskirts, there will be 50 applicants per plot. And the municipalities really go all in with 50% over the standard land value or bidding procedures.
So it is common here that people apply for a plot, plan everything, and after 2 years of planning time get a rejection.

But important question: is there a building obligation for the plot? You often read here about new development areas that have a VERY tight schedule for completing the house.

EL=Eigenleistung?

Yes. A bit of interior finishing, laying floors, and some painting should really be doable by everyone. That’s about 20,000 EUR of bank-recognized equity.

Why do you recommend only 10 years at the current interest rates?

I don’t recommend it. Everyone has to decide for themselves. We will choose a 10-year fixed interest period each for the house bank loan and the KfW 153.

Our remaining debt after 10 years without special repayments will be a total of 392,000 EUR. Assuming an interest rate increase of 400 basis points (= 4%), our rate will suddenly increase by around 1,100 EUR/month after the fixed interest period expires. However, the goal is to pay off the remaining debt of the KfW loan amounting to 66,600 EUR after the fixed interest period and thus reduce the total annuity by 395 EUR/month.

Since we expect significant salary increases in the next 10 years and assume an almost constant interest rate level, we have opted for the cost-effective (but admittedly very risky) option.

Is it currently possible to combine KFW and BAFA for a new building?

Yes, KFW 124 (but not attractive in your case) and 153 can be combined with BAFA funding.

However, our general contractor told us recently that the BAFA funding pots are almost empty and the funding is supposed to be discontinued as of 01/01. In return, KfW funding is expected to be increased again.

We bought and financed the plot 2.5 years ago. If you don't want to pay in cash, which would probably be more reasonable, you can also choose a variable interest rate. Then you can make special repayments on the plot in full at any time.

The plot is definitely accepted as equity. The question is only to what extent. Is the price the standard land value or the market value? Banks (especially direct banks) usually accept the standard land value.

Otherwise, there is the question of the building obligation. If you get the plot, do you have to build within, for example, 2 years?

So land paid in cash, yes. It is always better (and cheaper), reasons have been given. The only downside: it may be that the bank only accepts the BRW of the land as equity. I don't know how much that differs from the purchase price for you.