Financial realization of a single-family house realistic?

Hello dear community,

I came across this forum rather by chance. In my area in the Westerwald in Rhineland-Palatinate, a new residential area is being developed in a small village, very idyllic. We applied for a plot of land and (surprisingly) received approval. The plot is currently being developed and construction is scheduled to start in spring 2021. We would like to build with a local reputable provider who builds solid houses "turnkey." I would like to get an assessment from you regarding the financing.

Here is an overview of the expected costs:

Plot
Plot size in sqm	725	€65,250.00
Development	725	€36,250.00
Property transfer tax	5%	€3,262.50
Notary / Land register	2%	€1,305.00
Total		€106,067.50

The development costs were estimated at €40 – 45; I was conservative and calculated €50 per sqm.

House
Base price turnkey		€325,500.00
Garage		€23,000.00
Painter / Floors		€26,000.00
Additional costs		€45,000.00
Selection of fixtures		€15,000.00
Total		€434,500.00
Interior fittings		€50,000.00
Landscaping		€50,000.00
Total costs		€640,567.50

We have an offer for the house. The selection of fixtures will probably be lower if in doubt; I am not so sure about landscaping. Overall, it is supposed to be a mid-range house, without a basement, solid construction. About 150 sqm.

Equity and income:

About €150,000 equity

Family: married couple, both 40 years old, 1 child, 4 years old, and no more children planned

Husband’s income: about €4,100 per month with tax class 4, full-time, no further significant salary increases expected apart from inflation adjustments

Wife’s income: about €1,300 per month with tax class 4, part-time, also no increase in hours or major raises expected.

Both are employed, secure jobs, no debts. The €150,000 was saved over the last 6 years since we were still in training before. We pay about €800 warm rent, have 2 cars (2 and 7 years old), go on vacation 1 to 2 times a year, and have a normal standard of living. Of course, we also receive child benefit; we also have some income from freelance side jobs, but we want to leave that out here.

Realistic or beyond good and evil or barely on the edge?

Best regards and Happy Easter!

Anyone who saves 150k alongside paying ongoing rent while also having a child within 6 years is doing quite a lot right. Still, maybe make some compromises on the project, the financing amount is indeed high.

But fundamentally, I wouldn’t see it as a mistake with a somewhat tighter budget and thus a buffer for unforeseen expenses.

Punch list:
- Build 10m2 smaller
- Double carport instead of double garage. Plus a garden shed
- Cheaper flooring
- Own labor?

Fortunately, landscaping and interior finishing come at the end. I would ease up a bit there and use the remaining amount to make a substantial extra repayment right away.

Have you already received a financing offer? How high is the installment?

Your basic calculation is realistic anyway, since you allocate sufficient amounts for all the "extras." Reasonable as a worst-case consideration, but I would actually aim lower with all the specific decisions.

Sounds doable if you cut back in some areas (Garage, Gala, etc). Loan 400-425k with a 1.6k to 1.7k rate should be fine. 20 years fixed, since your income won't increase significantly. Term 20 to 24 years.

Hi solide Finanzen, you both are fully established in life. Approximately where is WW? You are practically neighbors. Which providers?

Hi,

the place is called Boden (near Montabaur), the provider (I don't know if I am allowed to say this, please delete if in doubt) is called Kern-Haus.

Thanks for the initial feedback.

I hope to collect a bit more and then provide feedback.

Best regards