Finance house construction yes/no

  • Erstellt am 2014-08-25 20:08:52

yakari

2014-08-25 20:08:52
  • #1
Hello everyone,

my family wants to implement the following project

Land 120,000€
House 210,000€
Additional construction costs + new furnishings etc. 70,000€
Total 400,000

Equity 60,000€
Loan 340,000

Net income approx. 4000

What do you say????
 

Bauherren2014

2014-08-25 20:32:48
  • #2
I say: Hello back!

Now seriously: If you had read through a few posts here, you would know that your information is hardly usable? How are we supposed to assess this based on your data?

So please a bit more precise:
1. Family: How many people? Are there children? If yes, how many? Still planned or family planning completed?
2. One earner or two? Who earns how much? Permanent jobs?
3. House size? Equipment? Are the 210,000 fixed or is there more to come?
4. Additional construction costs sufficient? Best check Epis' list! How much of the 70,000 is new furnishings?
5. What about paving/outdoor facilities/carport/garage/topsoil...?
6. Where do you even want to build?
7. What are your monthly expenses? How much can you save?
 

yakari

2014-08-25 20:50:19
  • #3
Currently 2 adults 1 child + 1 child planned
Two earners, both permanent, man approx. 3000 woman approx. 1000
House costs fixed 170sqm
50k€ ancillary costs 20k€ equipment
At the moment we can save on average 1500€
 

ypg

2014-08-25 22:47:22
  • #4
I say: with moldings!
 

HäusleBuab

2014-08-25 22:48:43
  • #5
Hi,

realistically, you can only consider the financial cornerstones here, whether it fits your situation is something only you can decide. If you can definitely save €1,500 per month, then I recommend an annuity loan and simultaneously a high building savings plan (great word). With a rate of around €1,500 per month, you should be done in 25 years. (Only cornerstones!)

The advantage I always see is that you have a low 1% repayment as a must and then can voluntarily save a high amount to get attractive follow-up financing in 10 years.
 

Wastl

2014-08-26 08:30:31
  • #6

170 sqm house including basement for 210k€? I don't think that will work. Additional costs are estimated high, which is good.
Furnishings rarely come with the construction loan, meaning you have to pay the 20k€ from your equity. Same goes for acquisition-related incidental costs. The bank won't cover those either. Then you only have 30k€ equity left with a 340k€ loan - which is a bad ratio,...
You definitely have 3000 € income - 1000 € will decrease due to parental leave (or then daycare costs). 3000 € for a 170 sqm house will be tight. (Additional costs approx. 2 € per sqm = 340 € per month + reserves = 500 € per month). For a 340k € loan you need around 1500 € installment + 500 € additional costs = 2000 € for the house. Do you have enough 1000 € per month for cars, groceries, children, toiletries, etc.?
 

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