EH 790K€, financing 480K€ - feasible with our monthly budget?

Hello,

we are facing the decision to realize a new build on a building plot. Currently, the old KfW funding is no longer applicable, the new one is not yet available and there are not many details yet (possibly 100,000 EUR, 140,000 EUR under currently unknown conditions, no grants). Interest rates around 3.7% and rising.

In this environment, we ask ourselves whether a new build at costs around 790,000 EUR is feasible and financially sensible. The price from the developer (prefabricated house) will be around 485,000 EUR, the plot about 250,000 EUR, secondary construction costs 30,000 EUR, outdoor facilities 15,000 EUR, carport is already tight (10,000 EUR), garage will be omitted for now.

We need a loan of 480,000 EUR. Family income is about 8,000 EUR net per month, a family of four with two children. From this we plan to pay 2,100 EUR per month as loan installment. Special payments will probably be around 2,500 EUR...4,000 EUR per year at least in some of the years. Due to age, we want to be finished in 20-25 years and still have budget to go on vacation together or to renew the car occasionally. For those experienced with financing: does this sound like a sensible plan despite the high costs and financing amount?

Does anyone know of additional possibilities for building subsidies in Baden-Württemberg or in general? We fall out of the Z15 due to the income limit.

If a sale occurs, for example due to a job change, is it very likely to be associated with significant financial losses in the next 10 years (prepayment of the loan, assumption that house prices will at first not rise much or even stagnate)? Or am I overlooking something here?

I would appreciate your opinions on the planning and feedback.

Hello, if not you, then who....

I can't say anything about the calculation costs, but there is still a buffer for possible additional financing.

Sure that you will finish the rate in time? It's too early to check it yourself. In any case, you can afford such a rate.

Ok yes, no problem. We have a similar net income and that works. Btw: You don't have a developer, but a [GU] or [GÜ].

There are some calculators on the internet for this...

Assuming 480,000, 4% interest over 25 years results in a payment of €2,533.

At 3.5%, it is €2,400.

So your desired payment would need to be adjusted slightly if the balance is supposed to be zero after 25 years mathematically. In practice, however, you can certainly consider occasional special repayments.

I assume the gap between financing and purchase price is equity? I also think, based on the raw numbers, it seems quite healthy and doable. With 2 children, I assume the parental leave with potential salary losses is already over? Take another look at the cost side. Additional construction costs 30k and outdoor facilities 15k might be tight. What about the incidental purchase costs for the land (notary, property transfer tax)? The house price quoted by the general contractor is also rarely maintained (upgrades, fittings, etc.).