Financial realization of a single-family house realistic?

You can of course wait, but at the moment I wouldn't be sure which direction it will go. Either way, any reductions due to the already low interest rates would hardly make an absolute difference. But if you have time, then wait - and don't complain if it gets more expensive.

All good, in the end the interest rates are what they are; I don't want to complain, just try to achieve a good result.

I bought the plot of land from the municipality; it is currently still being developed, and until that is complete, there is no concrete timeline anyway, so I wouldn’t want / be able to make a deal with the bank right now anyway.

House Base price turnkey 325,500.00 € Garage 23,000.00 € Painter / Flooring 26,000.00 € Additional costs 45,000.00 € Sample selection 15,000.00 € Total 434,500.00 € Interior fittings 50,000.00 € Gala 50,000.00 € Total costs 640,567.50 €

Well calculated is better than poorly calculated. What I want to say is: there is potential for savings without actually cutting anywhere. Interior fittings for example: do you want golden faucets? Luxury sauna?

The plot is 725 sqm; do you think 50,000 EUR for the garden landscaper is appropriate?

Do you want every blade of grass and every little flower installed by them? Normally I would not plan the driveway that big and then allocate at most half of that for edging and terrace. Bushes and planting 10,000. The rest, as it comes. Does it have to be a fence?

Now your experience values: 40 - 45 Euro per sqm in Westerwald for development costs (all in), is that realistic, possible, probable, or so volatile that you simply can't say that in general?

Development costs are rather unclear to us, also dependent on the size of the new development area, planting, concept.

I was now at my house bank (Sparkasse). We have received a basic financing commitment with the following conditions:

I definitely think it is still too early when you say that the development will still take a long time.

It should also be mentioned that we are currently servicing a loan for a condominium at the Sparkasse (110% financing, approx. 0.6% effective interest rate, 192,000 EUR, remaining debt about 190,000 EUR, market value of the apartment approx. 190,000 EUR, term 1 year).

You will need that a little longer, won't you? Start marketing at the start of construction.

Hello ypg,

thank you for your assessment and your notes. I fully agree with you on every point.

Today I received another financing offer from Volksbank: similar to Sparkasse, but with an interest rate of 1.09 for 15 years on 280 TEUR (in addition to the two KFW loans), monthly total burden approx. 1,800 euros + approx. 14 TEUR special repayment right / year.

Best regards

does anyone know the formula for the maximum loan that banks grant? I heard it has been tightened since 01.04.2020. is that correct?

so ING has for "ages" that the loan amount may max. be 9 times the annual net salary. so with 2500€ net (the smallest of the last 3 months, and there is also no Christmas/holiday pay or bonus, so 13th salary) = max. loan amount 270,000€

this limit only disappears from 500,000€ financing.

the other banks always calculate based on a "household budget" what fits in. e.g. with a DSL Bank you can sometimes accommodate higher loan amounts.

on the other hand, if you already calculate the loan amount as 100 times the monthly net salary, I personally find that "unhealthy" (with 2000-4000 EUR net)

since Corona it has been observed that banks check everything more carefully and also reject faster, so indeed they have become more cautious.

Hello, may I briefly ask an intermediate question, which house from Kern-Haus are you building, ? Best regards