Marcus_BW
2022-06-13 21:33:58
- #1
Hello everyone, really great forum here. For a long time, I was a silent reader but now I need your advice on a possible financing.
Regarding the initial situation:
My wife and I (not married) bought an existing property in a district in 2018 for €390,000. It is a semi-detached house with 132 m², fully basemented + 250 m² plot. The property is quite close to the city center and is in a popular district. It is also only about 800 meters from grandma and grandpa. Back in 2017, we also considered possibly building new. However, only a new housing estate was an option for us. Meanwhile, it has been developed and for about 4 weeks we know that we could get a building plot. Overall, we never expected a possible allocation, since we applied quite late and factors like children were not/were no factor in the allocation. Building plot is located in Baden-Württemberg.
In principle, we are satisfied with the current living situation, but the possibility of building new is of course appealing. We already had a conversation with the real estate agent about how this property could be sold. She named a price last week that she could sell this property for at least €450,000 to €500,000. We are assuming the "worst case" here and calculate with €450,000. We bought the property back then for €390,000. A really good price for us at the time.
In January 2023, my wife will go on parental leave for 12 months, so her income will drop to €1,320. In terms of timing, my wife would start working again by or shortly after moving into the new build (as was the case with the first child after 12 months).
Income and asset situation:
Current housing costs:
Dynamic expenses:
Contracts:
Total income and expenses:
Last week we had a conversation with a possible builder to better estimate the total costs.
Total costs new build: Plot (development, notary, property transfer tax): €123,000
Building costs including basement: €500,000 (photovoltaics, floor coverings; lighting etc.)
Garages: €25,000
Kitchen: €20,000
Ancillary building costs: €50,000
Outdoor facilities: €20,000
Total costs: €740,000 - €80,000 equity - €450,000 sale of property = €210,000
This means we would need another loan of €210,000. This would increase the monthly installment to approx. €1,935. (Both loans). Total loan amount €540,000. What do you think about that? Is it doable? Or rather too risky?
Overall, I would say it is doable, even if the costs for the loan almost double.
Advice and suggestions from you would be great :)
Regarding the initial situation:
My wife and I (not married) bought an existing property in a district in 2018 for €390,000. It is a semi-detached house with 132 m², fully basemented + 250 m² plot. The property is quite close to the city center and is in a popular district. It is also only about 800 meters from grandma and grandpa. Back in 2017, we also considered possibly building new. However, only a new housing estate was an option for us. Meanwhile, it has been developed and for about 4 weeks we know that we could get a building plot. Overall, we never expected a possible allocation, since we applied quite late and factors like children were not/were no factor in the allocation. Building plot is located in Baden-Württemberg.
In principle, we are satisfied with the current living situation, but the possibility of building new is of course appealing. We already had a conversation with the real estate agent about how this property could be sold. She named a price last week that she could sell this property for at least €450,000 to €500,000. We are assuming the "worst case" here and calculate with €450,000. We bought the property back then for €390,000. A really good price for us at the time.
In January 2023, my wife will go on parental leave for 12 months, so her income will drop to €1,320. In terms of timing, my wife would start working again by or shortly after moving into the new build (as was the case with the first child after 12 months).
[*]Who are you? He: 41 years old, She: 38 years old
[*]Are there children? Yes, a daughter nearly 3 years old and a daughter will be born in December 22
[*]What do you do professionally? He: Sales, She: Department head, both employed and have been in the companies for 11 years now (but in different companies).
[*]How many hours do you work? He: 50, She: currently 20 hours (50% position)
Income and asset situation:
[*]Income: He: €4,100 net, tax class 1, She: €1,700 net tax class 1, not married
[*]Bonus payments not included.
[*]Child benefit: currently €219, birth of the second child December 2022, we wanted to consider the second child benefit as a possible buffer
[*]Equity: €80,000 + €45,000 stocks (which should not be included) + sale of existing property €450,000 --> profit €120,000
[*]Currently we still have a loan open with €330,000 with 17 years fixed interest rate at an effective rate of 1.84%
[*]In the 3 years after buying the property, we were able to build up a good €60,000 equity again
[*]Currently we have no other loans (car, etc.) open
Current housing costs:
[*]Loan: €1,137 monthly
[*]Electricity / Gas / Water: €240 monthly
[*]Garbage fees: €12 monthly
[*]Mobility costs:
[*]She: €150 fuel monthly, car fully paid off
[*]He: company car
Dynamic expenses:
[*]Groceries approx. €600
[*]Private expenses (shopping etc.) €400
[*]Fuel: €150
[*]Leisure: €150
[*]Childcare: €400
[*]Saving children and house: €100 per month
Contracts:
[*]Loan existing property: €1,137
[*]Insurance €350
[*]Health insurance €695
[*]Electricity/Gas/Water/Garbage fees: €250
[*]Internet: €80
[*]Mobile phone: €30
Total income and expenses:
[*]Total income: €6,019
[*]Expenses: currently €4,342
[*]Expenses new financing = €5,140
Last week we had a conversation with a possible builder to better estimate the total costs.
Total costs new build: Plot (development, notary, property transfer tax): €123,000
Building costs including basement: €500,000 (photovoltaics, floor coverings; lighting etc.)
Garages: €25,000
Kitchen: €20,000
Ancillary building costs: €50,000
Outdoor facilities: €20,000
Total costs: €740,000 - €80,000 equity - €450,000 sale of property = €210,000
This means we would need another loan of €210,000. This would increase the monthly installment to approx. €1,935. (Both loans). Total loan amount €540,000. What do you think about that? Is it doable? Or rather too risky?
Overall, I would say it is doable, even if the costs for the loan almost double.
Advice and suggestions from you would be great :)