fyaylmf
2022-04-05 13:30:35
- #1
Hello everyone,
since construction interest rates are now rising quite quickly, we see our project somewhat at risk and I wanted to hear your opinions on it.
We are in the commuter belt of Munich and were able to secure a small plot of land which, despite its small size, allows the construction of a single-family house (mid-terrace house). As mentioned, we have already secured the plot and are currently working with an architect on a plan that can be approved. We have already crossed out the basement, as it would be quite complex to build due to the existing neighboring buildings and we already feel forced to save costs because of the interest rate developments. However, due to the plot, I don’t see many further major savings potential, as building smaller doesn’t really make sense. We want/need to build with the same profile as the neighbor (E+1+D). We basically plan simple floor plans as far as possible, but see not many options due to the conditions of the plot. Currently, we are still planning with two roof terraces, as there will be no garden. In front, there is a public sidewalk directly, and at the back there is only a semi-public backyard. We plan the ground floor purely as a utility floor (guest room, garage, guest bathroom, utility room with rear exit, technical room). On the 1st floor, according to the current status, the living/sleeping area will be located (2x children’s rooms, dressing room, bedroom, bathroom) and the attic will have an open living/cooking/dining area with two roof terraces. There is no development plan. We now want to build conventionally with local companies and our architect. No personal labor is planned so far. But I would be open to it if something sensible can be done; I’m not a craftsman but also not clumsy ;).
The buildable plot is in a central location and is about 2 km from my workplace. Therefore, a car is sufficient for us.
When I found the plot, interest rates were still better and I was quite confident with the new development. Now I’m a bit more cautious and have my doubts whether it will still work financially. The building permit will probably be granted at the earliest in the first half of 2023. So construction might start mid-2023.
Do you see this as feasible with our income situation and the current interest rate developments? Unfortunately, there are hardly any alternatives. Currently, we are well accommodated renting, but the space is too small (very old 3-room apartment). An alternative would be a new rental apartment at prices from 1,500 to 2,500€ per month. Semi-detached or terraced houses cost about 1.1 million Euros here (the cheapest with about 130 sqm living space).
We actually wanted a maximum rate of 2,000€/month, which is now just barely possible in the current situation and with a financing sum of about 620,000€.
Here are our details:
General information about you:
Income and asset situation:
Housing costs:
Mobility costs:
Insurance costs:
Living expenses:
Savings:
Income and expenditure totals:
General information about the property:
Construction or purchase costs:
Other costs:
Cost summary:
For your information: I have already asked two questions about floor plans under another account here in a different subforum, but for some reason I can no longer log in and cannot reset the password either. But that was a different topic anyway…
Best regards, Martin
since construction interest rates are now rising quite quickly, we see our project somewhat at risk and I wanted to hear your opinions on it.
We are in the commuter belt of Munich and were able to secure a small plot of land which, despite its small size, allows the construction of a single-family house (mid-terrace house). As mentioned, we have already secured the plot and are currently working with an architect on a plan that can be approved. We have already crossed out the basement, as it would be quite complex to build due to the existing neighboring buildings and we already feel forced to save costs because of the interest rate developments. However, due to the plot, I don’t see many further major savings potential, as building smaller doesn’t really make sense. We want/need to build with the same profile as the neighbor (E+1+D). We basically plan simple floor plans as far as possible, but see not many options due to the conditions of the plot. Currently, we are still planning with two roof terraces, as there will be no garden. In front, there is a public sidewalk directly, and at the back there is only a semi-public backyard. We plan the ground floor purely as a utility floor (guest room, garage, guest bathroom, utility room with rear exit, technical room). On the 1st floor, according to the current status, the living/sleeping area will be located (2x children’s rooms, dressing room, bedroom, bathroom) and the attic will have an open living/cooking/dining area with two roof terraces. There is no development plan. We now want to build conventionally with local companies and our architect. No personal labor is planned so far. But I would be open to it if something sensible can be done; I’m not a craftsman but also not clumsy ;).
The buildable plot is in a central location and is about 2 km from my workplace. Therefore, a car is sufficient for us.
When I found the plot, interest rates were still better and I was quite confident with the new development. Now I’m a bit more cautious and have my doubts whether it will still work financially. The building permit will probably be granted at the earliest in the first half of 2023. So construction might start mid-2023.
Do you see this as feasible with our income situation and the current interest rate developments? Unfortunately, there are hardly any alternatives. Currently, we are well accommodated renting, but the space is too small (very old 3-room apartment). An alternative would be a new rental apartment at prices from 1,500 to 2,500€ per month. Semi-detached or terraced houses cost about 1.1 million Euros here (the cheapest with about 130 sqm living space).
We actually wanted a maximum rate of 2,000€/month, which is now just barely possible in the current situation and with a financing sum of about 620,000€.
Here are our details:
General information about you:
[*]Who are you? My wife and I
[*]How old are you? 38 & 39
[*]Are there children? Yes, two (0 and 3 years)
[*]Are more children planned? No!
[*]What do you do professionally? He: Employee in public service. She: medical assistant
[*]How many hours do you work? He: full-time. She: currently not working due to parental leave
Income and asset situation:
[*]What income do you have (net)? He: 4,870€/month + 13th salary. She: parental allowance about 1,000€/month and probably not much more in part-time for now until full-time is possible again.
[*]How much child benefit do you get? 438€/month
[*]How much equity do you have? About 210,000€
[*]How much equity do you want to invest in the house project? All of it.
Housing costs:
[*]Current rent including utilities: 917€/month
[*]Electricity: 170€/month (including electricity for electric car)
[*]Telephone, internet, mobile phone: approx. 150€/month
Mobility costs:
[*]Car credit (or savings rate for new car): Leasing: 212€/month
[*]Insurance: 300€/year
[*]Taxes: none, because electric car
[*]Fuel: already included in the electricity costs mentioned above
[*]Repairs: 300€/year
Insurance costs:
[*]Liability insurance (also animals): 100€/year
[*]Capital or risk life insurance: 100€/month
[*]Pension insurance (also Riester, Rürup, etc.): 115€/month
[*]Disability insurance: 50€/month
Living expenses:
[*]Groceries: 500€/month
[*]Restaurant costs: 100€/month
[*]Care/drugstore: 100€/month
[*]Daycare/school fees (and lunch money): 200€/month
[*]Club memberships/fitness studio: 150€/year
Savings:
[*]Vacation: 3,000€/year
Income and expenditure totals:
[*]Total income: 6,300€/month
[*]Total expenses: approx. 2,700€/month
[*]Balance: 3,600€/month + 4,800€/year (13th salary)
[*]Of which sum cold rent and dispensable savings (e.g. savings rate for house): approx. 700€/month (since 917€/month warm rent)
General information about the property:
[*]How big is the plot? 140 sqm
[*]What are its dimensions? 6.75m x 20.5m
[*]What is the standard land value? 1,500€/sqm
[*]New build, old building (year built), house type?: Demolish old building, then build new mid-terrace house
[*]Garage?: In the house
[*]How large is the house? (living area / usable area): about 225 sqm minus built-in garage approx. 200 sqm total area. (House footprint 6.7m x 14.1m = 94 sqm, since attic with kneewall and 40-degree gable roof almost like a full floor: 3 x 94 sqm = 282 sqm, minus walls and plaster: 282 sqm x 0.8 = 225.6 sqm, minus garage: 225.6 – 25 sqm = approx. 200 sqm living/usable area)
[*]What is the market value of the plot and house after completion? 1.1 - 1.3 million
Construction or purchase costs:
[*]Plot costs: 208,000€
[*]Demolition costs: approx. 25,000€
[*]Ancillary acquisition costs (notary, court, real estate transfer tax, broker): 15,000€
[*]Construction or purchase costs (incl. architect, structural engineer): Our architect has calculated up to and including the basement: enclosed volume 879 m³ x 660 €/m³ = 580,000€
[*]Total costs: 828,000€
Other costs:
[*]Kitchen costs: Won’t be much left… initially Ikea
[*]Furniture, lamps, decoration: initially available
Cost summary:
[*]Total costs: 830,000€
[*]Deductible equity: 210,000€
[*]Financing sum: 620,000€
For your information: I have already asked two questions about floor plans under another account here in a different subforum, but for some reason I can no longer log in and cannot reset the password either. But that was a different topic anyway…
Best regards, Martin