Draft is ready ... now it's time for financing

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Hello everyone,

we had a wooden house designed by an engineering company. The location on the building plot and the design are right, but I still have concerns about the costs. I would be interested to hear what you think about it. Maybe we are wearing rose-colored glasses and no longer notice anything :)

Total costs: 570,000 Euro
included:
- Building plot 126,000 + 9,000 incidental costs
- Kitchen 15,000
- Bathroom furniture 3,000
- Driveway 6,000
- Terrace 12,000
- House connections
- Architect’s services
- Surveying etc...

The house will be a Kfw55 (calculation will only be done in the specific planning = risk) with approx. 160sqm living space. 1.5 stories. A lot of glass is used, windows wood/aluminum and roller shutter slats. The heating system planned is a Daikin (Rotex) air-water heat pump (Daikin is well known) with an additional stove with water jacket and 500L storage tank, which heats the floors. There is a garage with electric gate (5m) and green flat roof. The garage size is 60sqm (special request from me). No basement, everything on a slab foundation (otherwise it would be even more expensive!).

Now to our financial situation:
Net income you: 1400 (Employee AD, company car 1% deducted)
Net income partner: 3300 (Employee AD, company car 1% deducted)
Equity: 150k Euro
- of which 20k in Wohnriester (Schwäbisch Hall 1% credit balance, 2.95% debit interest)
Financing need: 420,000 Euro

We have received our first offer from VR + Schwäb.H. A forward loan for 7 years was generated (until the Wohnriester is 40% paid) - this is relatively cheap at 1% - however, after these 7 years the debit interest rate of 2.95% applies (advisor’s statement, it might be handled differently). 50k comes from the L-Bank or Kfw at approx. 0.75-0.8%. For the rest, a 250k annuity loan was included at an interest rate of 1.3% for 10 years.

Unfortunately, our requirement of a maximum monthly burden of 1600 was not met. The first 5 years at the L-Bank are interest-only, so approx. 1450 Euro monthly rate. Then the repayment of 150 Euro comes in – so 1600.... after 7 years the Wohnriester forward loan runs out and there is another increase to about 1750 Euro.

For me, three questions arise:
- Is it worth integrating the Riester contracts or should they be dissolved?
- Does the financing sound okay, or are we better off with pure annuity loans?
- What do you think of the total construction sum of 570,000 Euro? Our pain threshold was moved from 500 to 550 ... now we end up at 570,000.

I look forward to your answers and wish you a great start to spring!

I am attaching some pictures as well :)

What is your family situation? Children? How secure is your income?

Hey,
He 31
She 28
Both jobs are of course permanent, but what is really certain these days? Net income without variable components or Christmas bonus .... that kind of thing belongs in the special repayment.
No children, but one is planned in the next few years (first the house)
Merci

How would your financial situation look with a child? What are your current monthly expenses and how do you think they would change with offspring?

I find the targeted rate too high in relation to your income.

Wohnriester:
I consider the subsequent taxation in retirement age to be a sham.
One or the other will certainly get into financial difficulties later if the pension is calculated differently than today.
However, this is my personal opinion on this topic.

I recommend multiple consultation meetings at different banks.

I find the targeted rate too high in relation to your income.

I usually like to stay out of financing threads; I just want to endorse this statement. I will gladly write something about the projected housing costs tomorrow; it's too exhausting for me on the phone ;) Rhineland greetings from on the go

I also consider the financing requirement and the installment to be too high in the given situation.