Financing plan too unrealistic?

Hello,

I would like to know from you whether my financing plan is too unrealistic... that is, whether I am heading for trouble with it or if I am worrying too much. We are now trying to get everything finalized. Our construction can only start from November 22.

About us:
- Married couple (man 36, woman 31) from Thuringia
- One child (7 months) and another child planned
- Professionally: Man (M.Sc. Business Administration) Software Product Manager; Woman Account Manager; permanently employed, woman currently on parental leave;

Income
- Together net 3400 + 2200 = 5600; due to parental leave 3400 + 1290 + 219 (child benefit) = 4900
- Bonuses approx. 10,000 net per year
- Equity capital 50,000 today
- Equity capital at start of construction approx. 80,000
- Redeemable direct insurance approx. 20,000 EUR

Variable expenses
- Groceries approx. 600
- Restaurant: 50
- Cash withdrawals: 250
- Fuel: 180
- Leisure: 90
- Shopping: 200
- Miscellaneous: 419

Contracts:
- Warm rent: 955
- Direct insurance: 100
- Insurance: 200
- Electricity: 80
- Internet: 40
- Mobile phone: 50
- Savings rate 1500 EUR

In the end, we come out at about +/- 0 with this

Plot of land:
- 638 sqm
- Costs: 121,000 fully developed - 190€ per sqm; base value: 230€

Construction costs:
- 380,000 for 133 sqm solid construction, gable roof with 2 full floors
- Additional building costs estimated at approx. 20-30,000
- Exterior facilities are not planned for now

Additional costs
- Kitchen: financing
- Furnishing: 10,000 EUR

Total costs:
Plot and construction: 500,000
Equity capital: 50,000
Loan: 450,000

Loan:
- 450,000 as an annuity with an interest fixation of 20 years. Interest rate 3.15% with a repayment of 1.65%. Monthly rate: 1800
- Residual debt after 20 years: approx. 239,000 EUR
- Special repayment: 5% We plan 5,000 special repayment annually.

That would be it. What do you think? The monthly rate worries me a bit in relation to our savings rate. We just about manage with the 1,500 savings rate. If you take away the rent and calculate a house charge of 500 EUR, we come out with about 200-300 EUR per month surplus.

I have pressed and compared the banks until it was no longer possible. I don't think I can get below 3.15, and the loan is already tight.

Tight with the pure income. But with the bonuses completely okay. You always have to work together. Because children always cost - regularly and one-time expenses.

But forget about the [Sondertilgung]. You won’t be able to afford that anyway.

I see the following points:
- Additional construction costs are very low to low, depending on what is already included in your house
- Outdoor facilities are not an option, you definitely need a paved driveway and paths. And children also want a place to play
- according to your own calculation, you do not have a surplus to upgrade the outdoor facilities later
- you also lack the monthly surplus for special repayments
- you indicated the kitchen as a separate financing, but that also costs money. Moreover, it would be better to increase the secured home loan than to take out a consumer loan for the kitchen
- where are savings installments and reserves for the cars?
- with the equity capital, I see the rate as too low, accordingly the term is 34 years and thus too close to your retirement start

As far as I can see, everything depends on the bonuses for you. Otherwise the calculation doesn't really add up.

Hello,

your numbers (income/expenses and loan amount) are basically identical to ours. The only difference is that we already have two children. I find the €1800 at 3.15% and 20 years fixed interest rate good for the current conditions. I just had an appointment at Interhyp today and we were far from such terms (our equity share is €55K).

We would accept such an offer. Ok, my wife currently works only 50% as a teacher at a high school. In terms of salary, this can be scaled relatively easily (that already provides a good amount of security).

Which bank made you this offer?

Regards

What would 10 years or 15 years fixed interest rate cost?

I thought you can't get a mortgage with less than 2% repayment.

I wouldn't go below 2%.

Our construction is only possible from November 22 # One child (7 months) and another child planned # 638 sqm 121T fully developed / 190€ per sqm / standard land value: 230€ # 380T for 133 sqm solid, gable roof with 2 full stories # Outdoor facilities are initially not planned

So the plot already exists, it is reserved / bought ?, development is expected from November or why should there be no start before ?, a house is apparently concretely planned (and the price comes from the only obtained offer ?), around the house there will be a construction stump field and you enter it over pallets ? At your age and with such a small concrete and still uncertain sibling child I would have advised an interim house ...