Evaluation of Financing Offer

Hello dear forum community,

My wife and I are considering buying a small terraced middle house near Leipzig.
But first about us:

Man: 33 years old, permanently employed at a logistics company, net approx. 1600 - 1700 euros.
Woman: 32 years old, permanently employed at a hospital, net approx. 1700 - 1900 euros
Child: 2 years old

We currently live in a terraced middle house renting and are considering purchasing a similar terraced middle house.

We would like to buy a terraced house in the same settlement.
This costs 209,000 euros including the land, all house connections, but without interior finishing.
We would do the finishing ourselves.
Equity approx. 20,000 euros

Loan: 215,000 euros

1. of which 50,000 KfW term 10 years (until 2029)
0.85% nominal interest p.a.
3.76% repayment
192.98 euros monthly rate
32,422.65 euros residual debt

and 165,000 annuity loan (until 2039)
1.68% nominal interest p.a. (20 years fixed interest)
2.00% repayment
506.00 euros monthly rate
86,622.98 euros residual debt

To repay the residual debt we would bring in a second building savings contract

1. building savings contract: (BHW at 1.00%)

10 years: 166.00 euros monthly (from 2019 to 2029)
further 6 years 192.00 euros (from 2029 to 2034)

2. building savings contract (BHW at 1.25%)

10 years: 150.00 euros monthly (from 2029 to 2039)
5 years: 750.00 monthly (from 2039 to 2044)

I hope it is somewhat understandable.
Currently we pay 900 euros cold rent for our terraced house.
In our own home we would pay approx. 700 - 750 euros monthly.
We have no loans, debts. Money reserves: approx. 40,000 euros (20,000 euros of which as equity).

Thank you very much for considering my question.

You can apparently save money, which is great to start with. The monthly reserves will be smaller than today - just including the building savings contract alone, and repairs in an owner-occupied home are also somewhat different than in a rental property. The 700 - 750 monthly are just the installments. In the liquidity consideration, also take into account any double burden: building in the new house and still paying rent at the same time. You can plan and do it that way, I think.

Thank you very much for your quick response. Our plan is to set aside the difference between the current cold rent and the later loan monthly (for future repairs on the house and for the renewed savings on the savings accounts). That is between 150 euros and 200 euros per month. The double burden should, of course, be kept as low as possible. But we cannot estimate that accurately at the moment. It is planned that the terraced house will be completed in autumn 2020.

Am I overlooking the budget for the missing interior construction? What exactly is meant by that? Flooring and painting or more?

Hello, here I could buy a package that costs us 10,000 EUR. This includes wallpapering/painting floors and walls. We would pay for this from our own funds.

A renovation package / interior construction? What is included in it?