Hello dear community,
I came across this forum rather by chance. In my area in the Westerwald in Rhineland-Palatinate, a new residential development is being opened up in a small village, very idyllic. We applied for a plot of land and (surprisingly) received an approval. The plot is currently being developed, and construction is scheduled to begin in spring 2021 as planned. We would like to build with a local reputable provider who builds solid houses "turnkey."
I would like to get your assessment of the financing.
Here is an overview of the expected costs:
Plot |
|
|
Plot in sqm |
725
|
€65,250.00 |
Development |
725
|
€36,250.00 |
Property transfer tax |
5%
|
€3,262.50 |
Notary / Land registry |
2%
|
€1,305.00 |
|
|
|
Total |
|
€106,067.50 |
The development costs were estimated at 40 – 45 euros; I was conservative and calculated with 50 euros per sqm.
House |
|
|
Base price turnkey |
|
€325,500.00 |
Garage |
|
€23,000.00 |
Painter / floors |
|
€26,000.00 |
Additional costs |
|
€45,000.00 |
Customization |
|
€15,000.00 |
Total |
|
€434,500.00 |
|
|
|
Interior fittings |
|
€50,000.00 |
Exterior landscaping |
|
€50,000.00 |
|
|
|
Total costs |
|
€640,567.50 |
We have an offer for the house. The customization might be lower if necessary, but I am not so sure about the exterior landscaping. Overall, this should 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 the family planning is complete
Husband’s income: about €4,100 per month with tax class 4, full-time, no further significant increases in salary expected other than inflation adjustments
Wife’s income: about €1,300 per month with tax class 4, part-time, also no increase in hours or significant increases 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 per year, and have a normal standard of living. Of course, we also receive child benefits, and we still have some income from freelance side jobs, but we want to leave those out here.
Realistic or beyond good and evil or right on the edge?
Best regards and happy Easter!