Duplex house in the Eifel

Hello everyone, I or we are new here in the forum and we have a question right away.

I will best work through the pinned post:

General information about you:

[*]Who are you?
We are Simone, Peter, Luna and Artemis (2 house cats)
[*]How old are you?
We are 30 and 31
[*]Are there children?
[*]Are children planned?
Not yet, but we want to soon.
[*]What do you do professionally?
We work in Trier in consulting M&A and as industrial climbers
[*]Are you employed, self-employed, retired, housewife, househusband etc...
both employed
[*]How many hours do you work?
Between 40 and 50 hours/week

Income and asset situation:

[*]What income do you have (gross/net)?
Him: 2,600 to 3,000 net, 12 salaries
Her: 3,200 net, 14 salaries + commissions, up to 10,000 p.a. in recent years, variable
[*]How much child benefit do you get?
none
[*]Other transfer payments such as parental allowance, sickness benefit, etc...?
none
[*]How much equity do you have?
30,000 cash
50,000 stocks & funds
100,000 fixed-interest securities
1,500 sqm inherited land, of which 750 sqm building land
[*]How much equity do you want to invest in the house project?
The plot on which we want to build, beyond that we actually want to leave our money where it is.

Expenditure situation:

Housing costs: total 1,590 euros

[*]current cold rent
400 euros apartment 1
350 euros apartment 2
[*]current warm rent
200 euros apartment 1
180 euros apartment 2
[*]various additional costs
150 euros apartment 1
150 euros apartment 2
[*]phone, internet, mobile
160 euros (because 2x)

Mobility costs: total 410 euros

[*]car savings
300 euros
[*]insurance
50 euros
[*]taxes
10 euros
[*]fuel
50 euros
[*]repairs
???
[*]other
???
[*]We have 2 company cars that are taxed as part of our salary.
Actually, our car is more parked than driven, but here you always need a car.

Insurance costs: total 425 euros

[*]private health insurance (also supplementary insurance, daily sickness allowance etc.)
50 euros
[*]liability insurance (also animals)
5 euros
[*]capital or risk life insurance
30 euros
[*]pension insurance (also Riester, Rürup, etc...)
300 euros
[*]disability insurance
---
[*]accident insurance
20 euros
[*]household insurance
20 euros (2 apartments)
[*]legal protection insurance
---
[*]other insurances (e.g. travel insurance, funeral insurance)
---

Living expenses: total 1,010 euros

[*]groceries
500 euros
[*]restaurant costs
100 euros
[*]care/drugstore
30 euros
[*]pets (food, vet, medicine, stable costs)
50 euros
[*]medicine
---
[*]clothing
phew... hard to say... 200 euros?
[*]furniture
no idea
[*]daycare/school fees (and meal money)
---
[*]club fees/gym
30 euros
[*]other
100 euros

Savings: total 1,500 euros

[*]vacation
400 euros
[*]house
1,000 euros
[*]retirement provision
---
[*]hobbies/gifts
---
[*]other
The rest of what remains goes into the overnight money account.

Income and expense totals:

[*]total income
5,800 - 6,200 euros (plus at least 5,000 euros from Christmas and vacation pay plus possibly bonus)
[*]total expenses
4,935 euros
[*]balance
865 euros
[*]of which sum cold rent and dispensable savings (e.g. savings rate for house)
1,000 + 400 apartment 1

General information about the property:

[*]How big is the plot?
1,500 sqm
[*]What are its dimensions?
25 x 30 + behind and opposite garden land
[*]What is the standard land value?
45-50 euros
[*]New build, old building (year built), house type?
New build two-family house, gabled roof
[*]Garages?
2-3
[*]How big is the house? (living area / usable area)
Basement
[*]What is the market value of land and house after completion?
no idea

Construction or purchase costs:

[*]land costs
none
[*]development costs
none, fully developed
[*]ancillary purchase costs (notary, court, property transfer tax, broker)
none
[*]construction or purchase costs (incl. architect, structural engineer)
540,000 euros
We have not received an offer from a local builder, but got this rough price.
[*]additional construction costs (e.g. house connections, soil expert, construction electricity etc.)
60,000 euros
[*]outdoor facilities/terrace, paths, garden design, fences etc...
20,000 euros
[*]financing costs (e.g. fees or commitment interest)
from equity
[*]total costs
620,000 euros

Other costs:

[*]kitchen costs
from equity
[*]furniture, lamps, decoration
from equity

Cost summary:

[*]total costs
620,000 euros
[*]deductible equity
none
[*]financing amount
620,000 euros

Necessary loan information:

We have not obtained any offers so far because we do not know if this is too big a deal for us. That is why we are here now. Maybe you can also give us tips on what to watch out for or what is important.

Hello and welcome to our house building form :)
I hope you have already been able to read up a bit here.

To be honest, I am a bit puzzled by the "questionnaire": isn’t that the list you are supposed to make for yourself??

Well then,
I am not the financial power here, but I’ll ask the other way around (because many amounts above are a bit confusing after all)
What kind of repayment did you imagine? What does the financial situation look like when children are there?
The numbers looked very good at the beginning, also the presence of a plot of land as well as good equity. Why can it then not simply be that you choose a house in the mid-price range?
I can’t remember that a couple wanted to take out such an amount in addition to what they already have.
I think you are currently in top shape ;)

Also, I gather that you don’t live together yet?

Best regards in brief

Hello,

I believe some information got lost in the whole breakdown. We don’t keep a household budget, but we know that we earn well, yet also have high fixed costs.

We have been married for 3 years and of course live together. During the week, because of work, I have an apartment in Trier and an apartment where we also want to build. My husband is often on the road during the week, but also comes home now and then. I don’t like this daily commuting. That’s why the second apartment.

It is supposed to be a two-family house because my husband’s parents want to sell their house in Cologne and move in with us in the Eifel so they can spend the wealth tied up in the house before they go under the ground. They will then live there as tenants.

We think we have to budget around 2,000 euros a month for the house. From that, the rent would still have to be deducted, leaving 1,600 euros for us.

Is that understandable? I find it incredibly complex, even though I usually think very structurally. It’s just an incredible amount of money.

The easiest way would be to use your list to engage the services of an independent financial advisor and, in parallel, obtain offers from 1-2 conventional financial service providers/banks to see under which conditions, terms, and monthly payments you can finance a certain amount over 10/25 years. The size and features of your house will then depend on this. An architect can then implement this as a preliminary design of your house in 2-3 variants with a cost estimate/cost calculation according to DIN 276. Without knowing the details: the amount is realistic for a two-family house.

However, it must also be clear that the Vulkaneifel is not a "boom region," except perhaps in the immediate catchment area of Trier. The land value alone shows this. Building here only pays off with long-term personal use. An early sale of the property will hardly cover the construction costs; banks will also take this into account when financing. It is, of course, also nice to hear that people want to move back to the really beautiful Eifel.

And asked differently: why do your husband’s parents want to move to the deep Eifel, where it is generally more practical to live in the city as you get older? Would the conversion/extension, etc., of the house in Cologne into a multi-generational house not be an option? You would have to play through various scenarios.

Hello SimoneBohne,

there is nothing standing in the way of the feasibility of your financing for the construction project. Unless there are surprising additional information to be obtained, this will result in a positive credit recommendation due to the very good creditworthiness and sufficient equity.

It will be necessary to discuss and clarify how the financing concept should be designed regarding the fixed interest period, interest rate security, flexibility, funding opportunities from Kfw and state funding, options such as the repayment rate change option (family planning), and special repayment option.

The property is equity and will also have an impact on the loan-to-value ratio and the determination of terms. One would have to see if it makes sense to contribute a little equity. Otherwise, the framework conditions are TOP. The only concern would be if children come into the picture and the woman (?) goes part-time. In RP, as far as I know, there are no costs for daycare / kindergarten, but there is a loss of income. Also the question of whether M&A is still possible then. But I notice you are well prepared.