Financing house purchase, renovation, and extension

Good evening everyone,

I would like to hear your assessment of our project. Tips, criticism, and suggestions are gladly accepted.

Personal information:

- Wife (34 years): €3000.00 net (public service)
- Husband (35 years): €3100.00 net (public service)
- Childless and no plans for children
- Equity €170,000

We have found our dream house. It is a settlement house from 1956. We want to completely renovate it and then add an extension (living room). The plot size is 1000 m2, living area currently 93 m2, afterwards 129 m2.

I am aware that people ask why this plot size and extension are necessary for 2 people. But we simply have a lot of desire and time for garden design, etc.

Costs for the house:

Plot including ancillary costs: €230,000
Renovation and extension: €250,000 to €320,000
So far, I have 5 offers (general contractor and architect). Our ideas have been incorporated, and some contractors have added their own.
I am aware that with a renovation, "quite a few" unexpected things can happen. Therefore, my plan is to include €150,000 equity (€20,000) buffer in the financing and to take out €50,000 more than the highest offer.

This means:

Costs including buffer: €600,000
Equity: €150,000
Loan amount: €450,000
Repayment 3.5% over 20 years
Rate approximately: €1,700

And here are the actual questions:

Are costs too high compared to income?
Is the rate too high compared to income?

Tips, suggestions, comments, and criticism are gladly welcome!

Best regards
Settlement house

If you actually remain childless, that's absolutely easy to do! But even with child(ren), it would certainly work out somehow. DINK is, of course, a premium prerequisite for such a project, I don't think it gets any better. Child(ren), when looked at very objectively, are also a significant cost factor. For example, we are currently paying well over €500 just for daycare fees for a few hours of care per day, so theoretically a €500 lower rate would be possible or compromises in other areas. You don't have such problems, so the €1.7k rate is almost conservatively calculated, and you are certainly not yet at the end of your salary development. :cool:

Looks coherent! Good luck and have fun! :)

Without children, it works. When children come, vacation will be spent in the garden.

without children it works. When children come, vacation is made in the garden

Nonsense and once again far too generalized from you. but please also bring your kitchen table statement

And don't forget the panties.

Anyway: financing fits here. Everything is totally easily possible.