Financing land and house construction

To give an update here as well, the current offer from the Commerzbank: (1) 200,000€ KFW 300 at 0.53%, 10 years fixed interest, 5 years repayment-free (2) 150,000€ from IFB (Hamburg promotional bank) at 2%, 15 years fixed interest, 2.5% repayment, 1 year repayment-free (IFB is subordinated) (3) 440,000€ Commerzbank at 3.31%, 15 years fixed interest, 1.25% repayment Totals to a total rate of 2,830€ after the end of the repayment-free initial period.

To give an update here as well, current offer from Commerzbank: (1) €200,000 KFW 300 at 0.53%, 10 years fixed interest, 5 years repayment-free (2) €150,000 from IFB (Hamburg development bank) at 2%, 15 years fixed interest, 2.5% repayment, 1 year repayment-free (IFB is subordinated) (3) €440,000 Commerzbank at 3.31%, 15 years fixed interest, 1.25% repayment

All in all, after the end of the repayment-free start period, a total rate of €2,830.

My dear Scholli, you really have taken on quite a lot. If I see it correctly, you are practically not repaying anything until the end of the terms. I don’t really see much (financial) leeway for special repayments or to significantly increase the repayments.

Do you already have a plan on how you want to tackle this huge remaining debt mountain? It is particularly unfavorable in this respect that the KFW loan matures 5 years earlier than the others, or does the 10 years only refer to the fixed interest period and the term is actually longer?

After the first 10 years have passed, I have the following options for the KFW residual debt (from my perspective): Option 1: Accumulate so much additional equity over 10 years that the KFW loan can be completely paid off after 10 years (equivalent to about €1200 additional savings per month); rather unlikely but not impossible due to salary increases and possibly inheritance Option 2: After 10 years, refinance the main loan together with the KFW portion by exercising the special termination right (provided the interest rate environment is low) Option 3: Shift the KFW loan to the main financing bank

The numbers are already very intense - personally, that would be a bit too much for me. On the other hand, you can see how bad it has already become when you can't afford a new build with 500m² on your salary (I'm "just" at 130k€ gross at 31 years old and thought I was a top top top earner) - although you have to say that in relation to the income, your equity is unfortunately very low, which is why these astronomical sums are coming now. Personally, I would secure the land if possible and then save for another 3-5 years, or downscale and move a bit further outside - the older I get, the more advantages I see in being away from the city center, but that's probably a matter of taste. Are you sure that the salary is secure over a longer period? That almost looks like Amazon/Microsoft in Munich with the age and the bonus? Even with those two, there are layoffs from time to time - for example, 1 year ago at Microsoft when they kicked out EMEA IoT Consultants on a large scale. I don't want to paint a bleak picture, but you really have to be risk-tolerant there.

oh yes and anyone who builds a house for that money doesn’t settle for a 15k€ kitchen, but rather 30k-35k€. Just as well, another 5k€ go into lamps and so it goes on. A nice furnishing should also be there in such a beautiful house ;-)

oh yes, and anyone who builds a house for that money usually doesn’t settle for a €15k kitchen, but rather €30k-35k. Just as well, another €5k goes into lamps and so on. A nice interior should also be in such a beautiful house ;-)

For the kitchen we are currently planning €20-25k, otherwise we are not building anything particularly luxurious. We are at €430-450k for the house, which for 160 sqm is even below the often mentioned €3000/sqm. Additional construction costs of course come on top.