Evaluation of Construction Project / Credit Offer

2020-01-13 17:10:54

It's not about the feedback itself here, it should be as honest and accurate as possible...

It's about the manner and especially about the fact that it feels like 80% here apparently are not able to read posts (but then want to give others tips regarding a possible financing - how is that supposed to work if simply reading posts obviously is already a problem?)

Of course, our plan exclusively accounts for contingencies, that's just how a plan and a future consideration are, it will be the same for anyone else. Every plan is ultimately only as good as it is implemented.

We are also aware that if we do not reduce our consumption, the project is doomed to fail, but fundamentally I don't need feedback here for that, it's about food for thought and possibly people who were in a similar situation and how it went for them.

I also always find it nice that various points are mentioned here multiple times, without really backing them up with facts.

A counter-question to those who say our net income would not be sufficient for a project of this magnitude: What do you consider to be a sufficient net income for this?

I want to make a nice comparison regarding net income:
Currently I have 15 km (one-way) to work, but as of today I have an offer of €3,900 net per month, which however is 95 km (one-way) away.
If I were to accept this offer now, the unanimous opinion here would probably be that we can handle the project without problems, but that this higher income has been bought with a significantly higher effort which would only partially be reflected in the usual expenses would have been overlooked.

So, in detail, hand on heart:
What monthly surplus would you see as reasonable to be able to manage the project?

Maximum 30% of net income for interest / repayment and ancillary costs. But I do not mean the 2% repayment but 3-4%. Let's assume 1.5% interest, 3.5% repayment on €500,000 that is €2,083 plus ancillary costs = €2,500. Then you would have to have €8,300 per month (bonuses averaged out). At 40% [30%?] €6,250 net. But that is after children. Including part-time.

2020-01-13 17:19:43

When a topic in this subforum has so many pages after a short time, you know immediately without reading that there is whining, primarily from Mr. Hilfe, whose name is rendered absurd by his posts. Yes, the personal contribution is critically to be questioned. And yes, the restrictions become a must instead of an option and hurt. But on both (!) the original poster has addressed this repeatedly and in detail. Repeatedly. Either he implements it or has a problem, now he knows that. Why can't one just leave it at that or accept it?! Why do some people not even properly read the answers? He had to repeat three times (!!) that he is aware the barbecue hut is not equity, he only answered the question about what outdoor facilities he brings... Here you can always weigh up abundantly whether financing fits, is tight, doesn't work at all, etc., but the tone here is annoyingly irritating again and again. Just ask targeted questions first, read the answer calmly and then give opinions and recommendations garnished with arguments. During the course of the thread, some things are rightly relativized, but that takes 10 pages and an original poster to whom one must be grateful for not disappearing again. My opinion on your question , I find it quite doable if you correct the personal contribution and you really manage to drastically restrict vacations. Then do it when you feel comfortable with it, not just because the banker does. You have a good income, the interest rate is good, waiting and saving will rather not be an option due to market price increases. 1900,- / sqm is by the way still possible in rural Saarland, where the original poster comes from, so it is not completely unrealistic. Besides, some points are really calculated generously, for earthworks (caution, can also go the other way) and kitchen we were for example 20k cheaper in total.

Yes, a scapegoat broker will always say “great starting position,” “super calculated,” “best conditions.” Yes! The numbers are undisputed, a bank will always finance the project. But it is like wanting to drive a Porsche but only being able to afford a VW. You can bet on the future, but you don't have to. In the end, the original poster decides.

2020-01-13 17:27:39

Wow, now nothing surprises me anymore....

2020-01-13 17:28:59

Maximum 30% of the net income for interest / repayment and additional costs. But I don’t mean the 2% repayment but 3-4%. Assuming 1.5% interest, 3.5% repayment on 500k, that is €2083 plus additional costs = €2,500. Then you would have to be at €8300 per month (bonus broken down). At 40% €6,250 net. But that is after children. Including part-time

Exactly those are unrealistic calculations for me, and I would also like to explain why....

The net income cannot be the benchmark for such a calculation, I also have to include the expenses for this net income as well as the cost of living in the region, right?

I can earn €5,000 net in Munich and my regular workplace is 100 km (one way) away. In addition, I have no company phone, no company bike, etc., which significantly increases my expenses, but these are not considered in this xx% of net calculation.

If I have the same net income in a rather weak region, it can be worth significantly more, plus not too long a commute, a company phone which is not taxable (phone contract and new purchase can easily be calculated with €30-50 net per month), and so on.

Apart from the very everyday costs (for example, in Saarland you can get a decent haircut for less than half the price as in Munich).

I therefore consider an income/expense calculation to be much more reasonable and appropriate, as it covers all these points.

2020-01-13 17:40:46

We financed 510k. 210k equity and another 55k in reserve as a buffer and for generously budgeted new furniture.

Income
She: 2100 EUR 60% 13 salaries
He: 3600 EUR 80% 13 salaries
2x child allowance 560 EUR (as you are from Saarland, you will know where we work)
Bonus about 8k + x

So our incomes are not much higher than yours, but I find it better:
both working again, time with significantly reduced income is over, we also allowed ourselves a longer break after child 2, with both part-time jobs there is comfortable potential for supplementing income. And the situation is secure and not a hypothetical scenario.
We also consciously postponed the construction to this phase of life. Originally, we wanted to build three years ago, but a longer break after child 2 would not have been possible then. And I also had to get used to the loan amount first.

2020-01-13 18:32:22

Currently, I have 15 km (one way) to work, but as of today I have an offer of €3,900 net per month, which is however 95 km (one way) away.

Then you imply, however, that we ... in this case I ... cannot calculate.

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Evaluation of Construction Project / Credit Offer

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