Feasibility of financing for a 155 sqm single-family house

Hello everyone,

we are currently in the planning phase for a single-family house. We have an offer for a shell house with about 155 sqm, which basically suits us, but I have serious doubts whether our cost planning and financial planning are realistic. The plot is gifted to us and has a value of about €44,000 after development with approximately 400 sqm.

General information about you:

[*
Who are you? Married couple in Baden-Württemberg
[*]How old are you? Both 28
[*]Do you have children? None yet
[*]Are children planned? Planned in the next 1-2 years (2-3)
[*]What do you do professionally? Me IT sector, wife physiotherapist
[*]Are you employed, self-employed, retired, housewife, househusband, etc...? Both employed
[*]How many hours do you work? Me 39, wife 37


Income and asset situation:


[*]What income do you have (gross/net)? Net together €4500
[*]How much child benefit is there? 0
[*]Other transfer payments such as parental allowance, sickness benefit, etc...? 0
[*]How much equity do you have? About €110,000 (€80,000 cash, €20,000 building savings contract 1, €10,000 building savings contract 2)
[LIST]
[*]Additionally, we have reserves of about €25,000 as an "emergency fund"


[*]How much equity do you want to put into the house project? €110,000

Housing costs:

[*]Current cold rent €150 (apartment belongs to my mother)
[*]Current warm rent €150 (wood heating, wood is free due to own forest)
[*]Electricity €40
[*]Water, sewage, garbage fees: €8
[*]Telephone, internet, mobile phone €30

Mobility costs:

[*]Monthly ticket for bus and train: €75
[*]Saving for new car: €200
[*]Insurance: €0
[*]Taxes: €0
[*]Fuel: €70
[*]Repairs: €50

Insurance costs:

[*]Liability+accident+travel+household contents: €70
[*]Disability insurance + pension insurance: €200

Living expenses:

[*]Groceries: €300
[*]Restaurant costs: €10
[*]Care/drugstore: €10
[*]Clothing: €20
[*]Club fees: €100
[*]Leisure (tickets, cinema, café, :
[*]Donations: €5
[*]Newspaper subscriptions: €55

Savings:

[*]Vacation: €50
[*]Retirement provision: €40
[*]Gifts: €20

Other expenses:

[*]Birthday presents: €20

Income and expense totals:

[*]Total income: €4,500
[*]Total expenses: €1,550
[*]Balance: €2,950

General information about the property:

[*]How big is the plot? about 400 m²
[*]What are the dimensions? 18x22m
[*]What is the land value? 110 €/m²
[*]New build, house type? New build, timber frame Swedish house KfW55 standard, ecological
[*]Garages? Carport
[*]How big is the house? (living area / usable area): 155 sqm living area
[*]What is the market value of the plot and house after completion? Estimated €550,000 (land + construction costs)

Construction or purchase costs:

[*]Plot costs: €0, as gifted
[*]Development costs: €8,000 (we want to do it ourselves, so only materials)
[*]Acquisition incidental costs (notary, land registry, etc.): €5,000
[*]Construction costs: €394,000 house, €12,000 construction management, €40,000 safety buffer (10%)
[*]Additional construction costs: €15,000
[*]Outdoor facilities/terrace: €10,000
[*]Financing costs: ?
[*]Total costs: €474,000
(This seems quite high to me for a shell house, but that belongs in another thread)

Other costs:

[*]Kitchen costs: €15,000
[*]Furniture, lamps, decoration: €5,000
[*]Photovoltaic system: €15,000

Cost summary:

[*]Total costs: €510,000
[*]Deductible equity: €110,000
[*]Financing amount: €400,000

Necessary loan details:

[*]Loan amount: €400,000
[*]Loan type: annuity loan
[*]Interest rate (p.a. nominal, otherwise effective): 1.53% effective
[*]Fixed interest period: 20 years
[*]Outstanding debt at the end of the fixed interest period
[*]Fictive total term until full repayment: 30 years
[*]Initial repayment rate: 3%
[*]Monthly rate: €1,400
[*]Extra repayments possible? Once per year max. 10%
[*]Repayment rate change possible? 5x free changes between 1-5%

Please provide a realistic assessment. Thank you!

Hello everyone,

we are currently in the planning phase for a single-family house. We have an offer for a shell construction house with about 155 sqm,
which basically suits us, but I have serious doubts whether our cost planning and financial planning is realistic.
The plot of land is being gifted to us and after development has a value of about €44,000 for approximately 400 sqm.

General information about you:

[*
Who are you? Married couple in Baden-Württemberg
[*]How old are you? Both 28
[*]Are there children? None yet
[*]Are children planned? Planned within the next 1-2 years (2-3)
[*]What do you do for a living? Me IT industry, wife physiotherapist
[*]Are you employed, self-employed, retired, housewife, househusband, etc...? Both employed
[*]How many hours do you work? Me 39, wife 37


Income and asset situation:


[*]What income do you have (gross/net)? Net total €4500
[*]How much child benefit is there? 0
[*]Other transfer payments such as parental allowance, sickness benefit, etc...? 0
[*]How much equity do you have? About €110,000 (€80,000 cash, €20,000 home savings 1, €10,000 home savings 2)
[LIST]
[*]Additionally, we still have reserves of about €25,000 as an "emergency fund"


[*]How much equity do you want to invest in the house project? €110,000

Housing costs:

[*]Current cold rent €150 (apartment belongs to my mother)
[*]Current warm rent €150 (wood heating, wood is free due to own forest)
[*]Electricity €40
[*]Water, sewage, garbage fees: €8
[*]Phone, internet, mobile phone €30

Mobility costs:

[*]Monthly ticket for bus and train: €75
[*]Saving for a new car: €200
[*]Insurance: €0
[*]Taxes: €0
[*]Fuel: €70
[*]Repairs: €50

Insurance costs:

[*]Liability + accident + travel + household contents: €70
[*]Disability insurance + pension insurance: €200

Living expenses:

[*]Groceries: €300
[*]Restaurant costs: €10
[*]Care/drugstore: €10
[*]Clothing: €20
[*]Club fees: €100
[*]Leisure (tickets, cinema, café, :
[*]Donations: €5
[*]Newspaper subscriptions: €55

Savings contributions:

[*]Vacation: €50
[*]Retirement provision: €40
[*]Gifts: €20

Other expenses:

[*]Birthday gifts: €20

Income and expenditure totals:

[*]Total income: €4,500
[*]Total expenses: €1,550
[*]Balance: €2,950

General information about the property:

[*]How large is the plot? approx. 400 sqm
[*]What are the dimensions? 18x22m
[*]How high is the land reference value? €110
[*]New build, house type? New build, timber frame Swedish house KfW55 standard, ecological
[*]Garages? Carport
[*]How big is the house? (living area / usable area): 155 sqm living area
[*]What market value do the land and house have after completion? Estimated €550,000 (land + construction costs)

Construction or purchase costs:

[*]Plot costs: €0, as gifted
[*]Development costs: €8,000 (We want to do it ourselves, so only materials)
[*]Additional acquisition costs (notary, land registry, etc.): €5,000
[*]Construction costs: €394,000 house, €12,000 construction management, €40,000 safety buffer (10%)
[*]Incidental construction costs: €15,000
[*]Outdoor facilities/terrace: €10,000
[*]Financing costs: ?
[*]Total costs: €474,000
(This seems quite a lot to me for a shell construction house, but that belongs in another thread)

Other costs:

[*]Kitchen costs: €15,000
[*]Furniture, lamps, decor: €5,000
[*]Photovoltaic system: €15,000

Cost summary:

[*]Total costs: €510,000
[*]Deductible equity: €110,000
[*]Financing amount: €400,000

Necessary loan details:

[*]Loan amount: €400,000
[*]Type of loan: annuity loan
[*]Interest rate (p.a. nominal, otherwise effective): 1.53% effective
[*]Fixed interest period: 20 years
[*]Remaining debt at the end of the fixed interest period
[*]Fictitious total term until full repayment: 30 years
[*]Initial repayment rate: 3%
[*]Monthly installment: €1,400
[*]Special repayments possible? Once a year max. 10%
[*]Repayment rate changes possible? 5 times free switches between 1-5%

Please give a realistic assessment. Thank you!

I myself come from the healthcare sector. Either your wife, you or both are underpaid at €4,500 net combined and working in IT and physiotherapy. But that is another topic.

Then, adding up your list, I come to €484,000 and not €474,000 + €35,000 = €519,000 and not €510,000. It may be only €9,000, but that might be needed later :cool:

I find the prices, except for outdoor facilities, quite realistic, although you can only say more with a detailed construction and performance description. But if 1st, 2nd, 3rd child come along, that means one of you will earn much less. Whether that will still be enough, you will have to calculate yourselves.

What I don't understand: Are the 474k now for the shell construction or have you already included everything else? Then it would be realistically priced; for a shell construction it seems expensive to me as well. Basement? With children, it will be tight, but maybe a few salary increases are still possible? You have at least planned a 40,000€ buffer, which is generous. On the other hand, 10k for the outside area is very little. Maybe just build 140sqm, then it will be much easier and you can easily manage it during parental leave.

In the list, some items are quite surprising. The house connections cannot partially be done by yourself but must go through the municipality or gas supplier or telecom. Notary fees should be significantly cheaper since there is no real estate transfer tax. 10.-- restaurant/month is not even a doner kebab place for two. BU for 200/month is a lot. 1.53% for 20 years is also a lot. Ausbauhaus means: you get the materials provided and do the interior finishing yourself, right?

What I don't understand: Are the 474k now for the shell and core house or have you already included everything else in that? Then it would be realistic in terms of price, for a shell and core house it also seems expensive to me. Basement?

The 474k includes everything listed above. So house, ancillary construction costs, development, notary and outdoor facilities. In addition, there is what is listed below. So kitchen, photovoltaic system and furniture/lamps/decor.

Some items in the list are surprising.
You are sometimes not allowed to do the house connections yourself, but it has to go through the municipality or the gas supplier or Telekom.
Notary costs should be significantly cheaper since there is no property transfer tax.
10.-- restaurant/month is not even a kebab shop for two.
BU for 200/month is a lot.
1.53% for 20 years is also a lot.
A shell house means: you get the materials provided and do the interior work yourself, right?

A shell house means: the house is erected and the contractor offers some items like heating, base slab, painting as well.
The rest is done on your own or commissioned.

When we talk about development, we only mean the lines up to the property. We have a plot in the third row and pull the lines through the front plots. The house connections themselves are included in the 474k.

BU: Is for two persons including approx. 40% pension coverage as equity fund.