Financing exclusively through a building savings contract

  • Erstellt am 2014-12-31 15:23:52

MichiQM

2014-12-31 15:23:52
  • #1
Hello,

In advance: Budget for land and house 200,000

I want to start building in 3 years. At the moment I don't have any equity.

My current income is: 1600 net and my girlfriend 800 net.

I am doing part-time further education (finished in 2 years), so I can later expect a salary of 2500-3000 euros net.

Of course, children should come at some point and I will have to pay the loan alone until then.

My bank said I should start paying into a building savings contract [Bausparvertrag] immediately and then convert it early; that would be cheapest for me.

Basically pay in for 3 years and then take out an advance loan [Vorabdahrlehen], which will then be repaid later when the building savings contract [Bausparvertrag] is due.

What do you think of this idea?

That would then be monthly 600 euros each from now until 2017 and then 600 euros (250 interest + 350 repayment) from 2017-2037 and from 2038-2045 it would be 1200 euros monthly.

Do you think this is a good idea?

Thanks in advance for your help.

Regards Michael
 

nathi

2014-12-31 17:25:05
  • #2
Well, on the one hand, you won't get by with 200k for house plus land, especially not in three years, because building tends to get more expensive.

You have already recognized that you can't get started with the current income, and with the hoped-for higher income later, it will still be very difficult without a lot of equity. Saving the 600 per month from now on is a very good idea; this way you'll immediately notice whether it is manageable. However, I only consider a building savings contract useful for the advisor in this situation. When building, you need liquid equity, and lots of it – the money in the building savings contract doesn't help you there. If you have saved the 21k euros in three years, you can reconsider other options then; with less liquidity reserve, you will get into trouble as soon as unexpected costs arise somewhere.

If your income is actually significantly higher in two years, you should of course save more monthly accordingly; maybe then a building savings contract will also make sense, but no one can say that now.
 

toxicmolotof

2014-12-31 17:27:42
  • #3
I think very little to nothing of it. At least with this information.

What kind of further training is that? I would like to have this salary jump too.

I also think the budget is set too low, even if you got the land as a gift.

Please provide more details about what you envision in terms of plot size and location, as well as perhaps initial ideas about house size, design, basement, etc... then maybe someone can tell you what costs are associated with it.

I don’t like being the bad guy, but you will definitely receive many important pieces of information that will be a hard truth for you.

That aside, the start is of course important. So start (by whatever means) to collect equity.

A building savings contract can be a good start for a partial amount, but at the moment this solution seems too expensive to me.

Maybe you should postpone the house construction so far back that you first collect a high salary for 3-5 years and meanwhile put aside most of it for building equity.

By then the family planning will probably be so concrete that you can plan the rooms accordingly.
 

MichiQM

2014-12-31 18:09:32
  • #4
Is there some kind of template savings plan for what is best to do with your capital or how to save it best?

Can someone tell me all the incidental costs involved in building?

I was thinking of a single-family prefabricated wooden house that is plastered on the outside. I only wanted to have the basement and walls done, the rest in DIY.

800 sqm plot would be okay for us. Costs between 60 and 80 euros developed depending on the location in Bavaria rural area.

Thanks + regards Michi
 

toxicmolotof

2014-12-31 18:58:14
  • #5
So let's say that the land including additional costs costs 70,000 EUR at best. If I now assume sporty additional costs of 30,000 EUR (there are various threads about this, just search for Baunebenkosten), that leaves 100,000 EUR for the house. For that, you might get... no, for that you get absolutely nothing as a new build in Bavaria that would be worthy for a family even with minimal planning. I don't even mean 100 sqm of living space.

I admire every ambitious young person, but having a job at 24/25 years old that gives you 2,500 - 3,000 EUR net will very likely not leave you time to build a house with your own work.

What professional experience do you have so far and what kind of further training are you doing? I have already had contact with many professional groups and the number of people who earn this money at that age I can count on one hand. Either they work in the parents' company and receive a salary that is not really earned, or they have a job with realistically 60+ hours per week.
 

bernie

2015-01-01 13:46:07
  • #6
Hello Michael, may I ask how old you are? I'm afraid it won't work in 3 years... does it have to be so soon? Saving more equity is certainly advisable. Also, even in very rural areas of Bavaria, you won't be able to realize a new build INCLUDING land and all costs for 200,000 euros.
 

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