Defining the financial framework, recommendations on house sale / land selection / new construction

Hello everyone,

We moved into our new build in the summer of 2022. For some time now, as a family, we have been thinking about moving, building a new house, buying another property, etc.

We do wish for a change, a way out of our comfort zone, which we would like to implement with our daughter finishing school in the summer of 2027.

In our desired district, building plots are currently for sale in a new development area. They can be found on Immoscout under the listing number 156102572. Unfortunately, I was not able to upload an attachment.

Some are already reserved, but I know from a reliable source that sales are not going as fast and well as they were in the low interest rate phase, because otherwise the plots would practically never be affordable for us.

Therefore, my first question would be, which of the offered and currently not reserved plots would be sensible in your opinion, if we want the entrance in the north/east and the garden in the west. If my orientation is not mistaken, it should be 22 and 23, 25-27, right? The prices are all roughly between 360 and 380k.

But now to the part about finances, how do you assess our situation, also in relation to our age, could/should we dare the adventure of building once again.

Husband 49: Net income €4500
Wife 43: Net income €4000
Child 14: Income €255

Currently, we only have the liability for our current building financing of €1669 (6% repayment, remaining debt €238k) and the plot with €580 (10% repayment, remaining debt around €16,500). We have fiddled with various real estate value calculators and have been estimated prices between €560-580k for our current house. But extras like the conservatory, kitchen fittings, central controlled residential ventilation were not considered. I don’t know how much that makes a difference, but just as info.

Calculating roughly, we assumed €550k, so that by the time of sale with further repayment until then, about €300k should remain.
In the meantime, we have saved up about €120k in equity. We save €3000 monthly fixed, the rest remains in the daily money account, currently about €20k.

Thus, we could start with €450k equity, could even round it up to €500k if needed (then the emergency reserve would have to step in).

If we then had to borrow about €450k again and assume 3.5% interest and 3% repayment, that would be a rate of €2437.50, which we could easily manage.

My husband is a bit hung up on his age, I less so. Our daughter is also very enthusiastic about the idea of moving closer to the city, especially regarding secondary schools (university, college or also vocational training opportunities).

But somehow the comfort zone and need for security keep interrupting the euphoria.

Many uncertainties, for which I hope to get some (maybe also just reassuring) answers.

Price-wise they all lie somewhere between 360 and 380k.

Including additional purchase costs, roughly 400,000€.

So we could start with 450k equity,

So land and additional construction costs.

If we then had to borrow about 450k again

..you could build a house under 150 sqm, without kitchen and conservatory. Moving, additional costs as well as outdoor facilities then from the emergency reserve.

What you can or want to do further with your salary is not included in the theoretical facts now.

But somehow the comfort zone and the feeling of security keep interrupting our euphoria now and then.

Many uncertainties, on which I hope for (maybe just reinforcing..) answers..

Do it! That would actually be all from me, but you have to write more here ;) Whether THIS house comes out for you with a 450k loan depends on your wishes. But you know that yourself. P.S. Child benefits are usually no longer counted as income by a bank, as the child is too old. However, it would be considered on the expense side.

If my orientation is not mistaken, it should be 22 and 23, 25-27, right?

What are you planning to build? Do you already have any ideas (apart from the premise of the orientation?) Note that some plots have communal areas (access road).

Hm. I won’t comment on the financial prospects now, I find it increasingly ridiculous when established people in their mid-forties with just under 9,000 EUR net income are to be coddled that the income easily covers a 500, 600k loan.

But. First of all, we are talking about Bremen. I originally come from Hanover, just to say that upfront... I know what it means to come from an eternal SPD stronghold, whose brightest feature is speaking the only real "High German" ;)

You are now buying a plot there and building new, your daughter is now 14. Before your new building, after probably, like with every new build, a lot of stress, some trouble, many unexpected costs is finally finished... until the garden is done... the eldest is already out of the house and would rather study in Aachen, Munich, Berlin or... God forbid, Hanover ;) Or do an apprenticeship far from home... internship... join the army... at 14, you usually don’t yet know where life will take you at 18 or 19. There are also one or another young love in between, hopefully not a pregnancy... but that can happen too, that’s just how it is.

And what do you ultimately gain? Getting 2 km closer to the city center? Is that worth the cost and trouble in the end? Honestly, I don’t think so, you’d have to move to a completely different world. So from my point of view from Dachau to Munich Schwabing or to Maxvorstadt, with a view of Geschwister-Scholl-Platz, something like that.

Not that you misunderstand me now. If the child were only 3 or 4 years old, that would be a completely different situation. Then she would still live there easily 14 or 15 years with you. But at 14... in my opinion, it’s no longer worth it.

P.S. Child benefit will usually no longer be counted as income by a bank, as the child is too old. However, it would be taken into account on the expense side.

That was meant ironically, but unfortunately, one is not allowed to use emojis that might indicate this.

What do you plan to build? Do you already have ideas (besides the premise of the orientation?)

Currently, we live on 2 full floors, with 3 bedrooms and a separate office and 150 sqm. We can imagine downsizing to a bungalow with 2 bedrooms and no separate office.

So preferably something around 100-120 sqm.

I find that increasingly ridiculous when dealing with established people in their mid-forties

Basically, I agree with you, we can make decisions ourselves but also like to ask experienced people. My husband and I are the first and so far only ones within our families to have built a house. We also have no previous generations who could pass on any knowledge in this regard, because our predecessors passed away upon reaching retirement age or moved back to their homeland. Please don't be so strict with me (here would now be a smiling e

But. First of all, we’re talking about Bremen.

I love my Bremen!

And what do you ultimately gain? Coming 2 km closer to the city center? Is that worth the cost and trouble in the end? Honestly, I don’t think so, you’d really have to move to a completely different world.
So for me from Dachau to Munich Schwabing or Maxvorstadt, with a view of Geschwister-Scholl-Platz, something like that.

Not that you misunderstand me. If the child were only 3 or 4 years old, that would be a completely different situation. Then she would still comfortably live with you for 14 or 15 years. But at 14... in my view, it’s no longer worthwhile.

For my husband and me, our commute would be reduced by about 20 km each way. For me, it would then be only just under 5 km.

Our first building experience went really well; there were only minor problems, which were always resolved quickly. I would even first ask the same general contractor again.

We also discussed the note about the child very often, which is why we came up with the idea not to build a two-story city villa this time, but a house that we can also live in and manage without child and luggage.