Financing offers for a new building

  • Erstellt am 2020-11-03 08:07:19

ArthHaus

2020-11-03 08:07:19
  • #1
Hello everyone,
here is the checklist and the first offers. We want to start construction at the beginning of next year and have now received the first financing offers. From what I have read here in the forum so far and what I have heard from acquaintances, I was quite taken aback when I saw the numbers. I would be interested in your opinion on this.
Thanks!

General information about you:

    [*]How old are you? 29 & 26 married
    [*]Do you have children? No
    [*]Are children planned? In about 5 years
    [*]What do you do professionally? Engineer and teacher (employee and civil servant)
    [*]How many hours do you work? Both full-time

Income and asset situation:

    [*]What income do you have? Together 6000 net, rising to about 6500 in one year (man 3500 & woman 3000)
    [*]How much child benefit do you get? -
    [*]Other transfers? -
    [*]How much equity do you have? €30,000
    [*]How much of this equity do you want to invest in the house project? €20,000

Housing costs:

    [*]Current warm rent - €1000
    [*]Electricity – €60
    [*]Telephone, internet, mobile phone - €150

Mobility costs:

Applies to 2 cars in the household

    [*]Insurance - 100
    [*]Taxes – 100 p.a.
    [*]Fuel - commuter/autogas – €200
    [*]Repairs – €1000 p.a.

Insurance costs:


    [*]Private health insurance - 390
    [*]Liability insurance/household contents - 20
    [*]Capital or risk life insurance – to be concluded shortly
    [*]Disability insurance - 30

Living expenses:


    [*]Groceries - 300
    [*]Restaurant costs - 100
    [*]Care/drugstore - 50
    [*]Clothing - 50

Savings contributions:

It should be noted that we only have the two "high" salaries since last month and previously did not save anything.

    [*]Building savings contract 1 with 130 (currently 2600 €)
    [*]Building savings contract 2 with 40 (currently 2400 €)


Other expenses:
none

Income and expenditure totals:
Bank assumption - living expenses - €1450
Real as stated here – €1550

    [*]Total income - 6000
    [*]Total expenses – 2550
    [*]Balance 3450

General information about the property:

    [*]How large is the plot? 1028 m²
    [*]What are its dimensions? About 17.2 m x 60
    [*]What is the standard land value? €100 / m²
    [*]New build, old building (year built), type of house? New build
    [*]Garages? Double garage
    [*]How large is the house? (living area / usable area) – 170 m²
    [*]What is the market value of plot and house after completion? …

Construction or purchase costs:

    [*]Plot costs €90,000 – remaining debt €87,000 variably financed
    [*]Development costs - 0
    [*]Construction or purchase costs (incl. architect, structural engineer) €423,000
    [*]Additional construction costs (e.g. house connections, soil expert, construction electricity, etc.)
    [*]Outdoor facilities/terrace, paths, garden design, fences, etc... – here we still expect about €20,000 + €25,000 kitchen which we will cover from our own funds
    [*]Total costs 530,000

Cost breakdown:

    [*]Total costs – €530,000
    [*]Deductible equity – €20,000
    [*]Financing amount – €510,000

House planned and building application submitted - 170 m² - solid brick with full clinker - KFW 55 - 2 full floors - solid double garage - without basement - geothermal with deep drilling - overall normal(+) equipment

About the loan:

Our requirements were: KFW 153 - installment about €1700 - no significant equity deployed, 100% financing

Here are the 2 best offers so far:
Component - loan amount - term years - nominal interest rate - initial repayment - installment

Bank1:
KFW 153 - €120,000 - 10 - 0.95 - 4.8 - 575 - will be redeemed after 10 years by an existing building savings contract, which still has to be paid with €20,000 in 10 years.
NRW.Bank - €70,000 - 30 - 1.55 - 2.73 - 250 - is paid off after 30 years
Bank1 - €320,000 - 30 - 1.84 - 1.44 - 875 - after 10 years the installment will be adjusted here to be paid off in 30 years (5 x repayment change - 5% special repayment p.a. possible)

What I like here is the interest rate security over the entire term and the clear process which is finished after 30 years, the installment is kept, interest rates seem to me mostly high.

Bank2:
KFW 153 - €120,000 - 10 - 0.95 - 3 - 395
KFW 124 - €100,000 - 10 - 0.84 - 3.76 - 383 - after 10 years about €125,000 remain, which we could secure with already existing building savings contracts, but we would have to save €45,000 in 10 years – unrealistic?!
Bank 2 - €100,000 - 15 - 1.57 - 2 - 298 - €49,000 after term - could maybe be minimized by special repayments. Where this extra money should come from - questionable!
NRW - €180,000 - 30 - 1.55 - 2.73 - 642 - is paid off after 30 years

Here I only like the maintained installment - interest seems high on the bank loan for 15 years - many components and multiple interest rate change risks - longer term for the bank loan not possible

Actually, we definitely wanted to finance with one of the two banks. Unfortunately, I can’t immediately accept either offer with a smile here.

I’m curious what you say, best regards!
 

kati1337

2020-11-03 08:15:38
  • #2
What strikes me first about your cost breakdown: 50€ for clothing/month – is that realistic? If my husband buys 2 pairs of jeans, that would already cover 4 months. You also need shoes, a winter jacket, etc. No other expenses? No trips or leisure activities? Most people assume a flat rate for this item. Don’t make your finances look better than they are. After building the house, you still want to live and not just work for the little house. Otherwise, I find the displayed interest rates expected for your financing amount and the low equity. A 30-year fixed interest rate is expensive.
 

nordanney

2020-11-03 08:16:07
  • #3
Why? You have never been able to finance property as cheaply as you can now. Even if the interest rates are subjectively "high." In the long run, they are objectively very cheap – objectively too cheap for our banking system! And long terms cost, especially when you finance fully. Of course, you can ask other banks. You won't save much.
 

kati1337

2020-11-03 08:22:54
  • #4
Oh yes, one more tip: Calculate the financing again with an Excel spreadsheet for 5 years from now, if you want to have a child. A child will significantly reduce the income, and for more than 1 year. Reduce your wife's income to €1800, increase the housing expenses to your rate of €1700 (or wherever you end up), set aside money monthly for maintenance/repairs, also consider a general savings amount that has nothing to do with the house (a washing machine will need to be replaced at some point), include insurances that will increase or be newly added (building insurance, household insurance possibly higher). And then see if there is anything left to live on at the end of the month. To my gut feeling, it looks tight.
 

ArthHaus

2020-11-03 08:29:46
  • #5
Thank you very much for the quick answers.

Kati, I agree with you that our expenses are probably higher in real terms right now and will also rise significantly in the future - I gladly take your tips on board and will recalculate everything completely. So far, the rate of 1700 seemed manageable to me. I just realized that I completely forgot the rate for the land - 320 €.
We have been living in the apartment for 2 years and have been paying an additional 320 € for the land for 1 1/2 years - so we had fixed expenses of 1320 € + living costs, with an income of 3800 €, and we were never in a situation where we had to do without anything.

Nordanney, maybe I am just being too critical and we should be satisfied with this. This long interest rate security comes at a cost.
 

truce

2020-11-03 08:36:52
  • #6
I have a quick question about the insurances:

    [*]Occupational disability insurance - 30

How much net coverage do you have with that??

Normally, one says you should insure about 60/70% of your current net income with occupational disability insurance.
With 30€ from you, that seems either like a very low premium (correspondingly low coverage?) or you have found a great insurer.

Regarding the financings:
Personally, that would be too many "components" for me.
We divided it into 2 components (KfW and bank loan).

That "could" cause difficulties with the ranking on the property/house, for example when switching/restructuring after about 10.5 years?
Or how do the experts see that?
 

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