ArmAberSexy
2021-12-08 14:01:55
- #1
Hello everyone,
I have been reading countless threads here for days on various life and financing scenarios and first of all a big thank you for the almost self-evident way in which you competently and with valuable life experience advise young people here on such an important topic. Let's just hope that you can also find a little time for my partner and me to objectively assess our scenario (We are pioneers among friends and the parents well, you know, a completely different generation).
My partner and I have been in a relationship for 7 years and living in the big city for 3 years, and for about 2 years now we have been searching very intensively and uncompromisingly for a home in southern Germany (Karlsruhe area). We had so far assumed we would never find a perfect existing house and have already informed ourselves accordingly in the direction of building a house, but now it suddenly happened after all - the perfect house. However, at €850k it tends to be above our planned budget (€600-700k). But here is all the information:
General information about you:
Income and asset situation:
Expense situation:
Housing costs:
Mobility costs: We have averaged €250 per month for all related items
Insurance costs: Currently only private liability ~€7
Living costs: We have averaged €400 per month for this category
Savings: €1000 should continue to be saved for, among other things, special repayment purposes
Other expenses: None except about €5000 remaining student loan debt
Income and expense totals:
General information about the property:
Construction or purchase costs:
Basic renovation in 2013/2014:
- partly new windows (double and triple glazing)
- all water and wastewater pipes replaced in stainless steel and plastic
- partly heating pipes and radiators renewed
- electrical wiring partly renewed and extended
- LAN cabling in almost all rooms
- floor coverings, walls plastered
- roof including insulation (20 cm between joists)
- basement exterior walls insulated (sealed with a thick coating, perimeter insulation 12cm, WLF035)
- conversion of basement rooms into a granny flat
- replacement of the chimney
- screed on the roof terrace renewed
Further modernisations/expansions 2020/2021:
- installation of 6 roof windows (Velux triple glazed)
- exterior walls of the roof extension insulated and newly plastered
- new electric garage doors
- new paving of the garage driveway
- new video door intercom system from Busch & Jäger
- circuit breakers renewed and retrofitted with RCD switches
From our point of view, practically everything has been done here except the oil heating replaced. Currently, according to information, the house requires 97kWh/m²a, which according to
the network corresponds to an annual oil consumption of about 3000L = €2550 at €0.85/l. With the old heating, the house is in energy efficiency class C.
What concerns me about this topic is that I do not know the flow temperatures needed for heating and cannot really rely on a figure, but this is mainly relevant for a sensible conversion to a heat pump if that should become necessary. After all, there is underfloor heating downstairs, which is apparently another prerequisite for this.
Cost breakdown:
We have derived two scenarios for this: the slowest and the tolerable fastest:
Slow (no special repayment)
Fast (€2000 repayment + full savings rate €1000 + rental income ~€800 as special repayment)
The prospective household budget then showed for us:
In other words, at the start of the undertaking we expect about €1920 left as budget for financing our everyday life, i.e., expenses, shopping, Christmas presents, common outings, and whatever else comes up. Besides the repayment of €2000, we would have about €1800 for special repayments which we would either use or spend on the more expensive things in life (keyword children).
The reality, given these unforeseeable events and expenses, will probably lie somewhere in the middle of the two financing scenarios as always. My main concern is an assessment of the overall calculation regarding completeness, risk, and plausibility. Of course, suggestions on anything else are also welcome. We are currently still seriously considering raising our offer for the house from €800k to €850k in view of the state of the house to be more competitive. But we cannot especially assess factors such as house ancillary costs for the size and the heated pool with any certainty. At least we can say more or less for sure that besides the heating, no modernization will be necessary for at least the first 10 years.
Enough input for now, we look forward to your opinions :)
Best regards & many thanks in advance!
I have been reading countless threads here for days on various life and financing scenarios and first of all a big thank you for the almost self-evident way in which you competently and with valuable life experience advise young people here on such an important topic. Let's just hope that you can also find a little time for my partner and me to objectively assess our scenario (We are pioneers among friends and the parents well, you know, a completely different generation).
My partner and I have been in a relationship for 7 years and living in the big city for 3 years, and for about 2 years now we have been searching very intensively and uncompromisingly for a home in southern Germany (Karlsruhe area). We had so far assumed we would never find a perfect existing house and have already informed ourselves accordingly in the direction of building a house, but now it suddenly happened after all - the perfect house. However, at €850k it tends to be above our planned budget (€600-700k). But here is all the information:
General information about you:
[*]How old are you? She 28, He 29
[*]Are there children? No
[*]Are children planned? Yes, 2 in 3-5 years
[*]What do you do professionally? She controller at an energy supplier, he consultant in medium-sized business, both fairly fresh from university (1-2 years)
[*]How many hours do you work? She 36h, he 40h
Income and asset situation:
[*]What income do you have (gross/net)? She €3000 net, he €3200 net, salary prospects in the industries generally rated good
[*]How much equity do you have? €250k
[*]How much equity do you want to put into the house project? €150k, the rest is to be "risk-free" but available invested in ETFs on the capital market
Expense situation:
Housing costs:
[*]current cold rent €650
[*]current warm rent €900
[*]water, wastewater, garbage fees, street cleaning: included in warm rent
[*]telephone, internet, mobile €60
Mobility costs: We have averaged €250 per month for all related items
Insurance costs: Currently only private liability ~€7
Living costs: We have averaged €400 per month for this category
Savings: €1000 should continue to be saved for, among other things, special repayment purposes
Other expenses: None except about €5000 remaining student loan debt
Income and expense totals:
[*]Total income €3000+3300+(~€800)= €6300 (€7100)
(The ~€800 are potential rental income from a nice granny flat which is part of the house to be purchased. The owner rents it out according to information depending on occupancy for between €8000 and €12,000 per year to commuters etc.)
[*]Total expenses: I think this is difficult without defining the position. My definition at this point is
Current moment: rent + mobility + other monthly fixed costs + savings rate = approx. ~€3400
[*]Balance €3900
[*]Of which cold rent and dispensable savings (e.g., savings rate for house) €250+€2000 = €2250
General information about the property:
[*]How big is the plot? 530m²
[*]What is the land value? probably ~€400/m²
[*]New building, old building (year built), type of house? Intensively modernized old building from 1977
[*]Garages? One garage
[*]How big is the house? (living space / usable space) 253m² living space, 120m² usable space
Construction or purchase costs:
[*]Ancillary acquisition costs (7%) amount to €56,000
[*]Renovation and/or refurbishment costs
The house has been renovated/refurbished in several stages since 2013/14. The services which are included here are e.g.:
Basic renovation in 2013/2014:
- partly new windows (double and triple glazing)
- all water and wastewater pipes replaced in stainless steel and plastic
- partly heating pipes and radiators renewed
- electrical wiring partly renewed and extended
- LAN cabling in almost all rooms
- floor coverings, walls plastered
- roof including insulation (20 cm between joists)
- basement exterior walls insulated (sealed with a thick coating, perimeter insulation 12cm, WLF035)
- conversion of basement rooms into a granny flat
- replacement of the chimney
- screed on the roof terrace renewed
Further modernisations/expansions 2020/2021:
- installation of 6 roof windows (Velux triple glazed)
- exterior walls of the roof extension insulated and newly plastered
- new electric garage doors
- new paving of the garage driveway
- new video door intercom system from Busch & Jäger
- circuit breakers renewed and retrofitted with RCD switches
From our point of view, practically everything has been done here except the oil heating replaced. Currently, according to information, the house requires 97kWh/m²a, which according to
the network corresponds to an annual oil consumption of about 3000L = €2550 at €0.85/l. With the old heating, the house is in energy efficiency class C.
What concerns me about this topic is that I do not know the flow temperatures needed for heating and cannot really rely on a figure, but this is mainly relevant for a sensible conversion to a heat pump if that should become necessary. After all, there is underfloor heating downstairs, which is apparently another prerequisite for this.
Cost breakdown:
| House | €800,000.00 |
| Additional costs | €56,000.00 |
| Total costs today | €856,000.00 |
| Additional costs | €56,000.00 |
| Repayment for 10% | €80,000.00 |
| Repayment money extra | €20,000.00 |
| Capital investment today | €156,000.00 |
| Loan amount (90%) | €700,000.00 |
[*]Loan amount €700k
[*]Loan type annuity loan
[*]Nominal interest rate 1.14%, Sparkasse
[*]Interest rate fixed term 10 years
We have derived two scenarios for this: the slowest and the tolerable fastest:
Slow (no special repayment)
| Interest 1.14% | Repayment | ||||
| Loan | Yearly | Monthly | Yearly | Monthly | |
| 1st year | €700,000.00 | €7,980.00 | €665.00 | €24,000.00 | €2,000.00 |
| 2nd year | €676,000.00 | €7,706.40 | €642.20 | €24,000.00 | €2,000.00 |
| 3rd year | €652,000.00 | €7,432.80 | €619.40 | €24,000.00 | €2,000.00 |
| 4th year | €628,000.00 | €7,159.20 | €596.60 | €24,000.00 | €2,000.00 |
| 5th year | €604,000.00 | €6,885.60 | €573.80 | €24,000.00 | €2,000.00 |
| 6th year | €580,000.00 | €6,612.00 | €551.00 | €24,000.00 | €2,000.00 |
| 7th year | €556,000.00 | €6,338.40 | €528.20 | €24,000.00 | €2,000.00 |
| 8th year | €532,000.00 | €6,064.80 | €505.40 | €24,000.00 | €2,000.00 |
| 9th year | €508,000.00 | €5,791.20 | €482.60 | €24,000.00 | €2,000.00 |
| 10th year | €484,000.00 | €5,517.60 | €459.80 | €24,000.00 | €2,000.00 |
| Remaining debt | €460,000.00 | €67,488.00 | €240,000.00 |
Fast (€2000 repayment + full savings rate €1000 + rental income ~€800 as special repayment)
| Interest 1.14% | Repayment | ||||
| Loan | Yearly | Monthly | Yearly | Monthly | |
| 1st year | €700,000.00 | €7,980.00 | €665.00 | €45,600.00 | €3,800.00 |
| 2nd year | €654,400.00 | €7,460.16 | €621.68 | €45,600.00 | €3,800.00 |
| 3rd year | €608,800.00 | €6,940.32 | €578.36 | €45,600.00 | €3,800.00 |
| 4th year | €563,200.00 | €6,420.48 | €535.04 | €45,600.00 | €3,800.00 |
| 5th year | €517,600.00 | €5,900.64 | €491.72 | €45,600.00 | €3,800.00 |
| 6th year | €472,000.00 | €5,380.80 | €448.40 | €45,600.00 | €3,800.00 |
| 7th year | €426,400.00 | €4,860.96 | €405.08 | €45,600.00 | €3,800.00 |
| 8th year | €380,800.00 | €4,341.12 | €361.76 | €45,600.00 | €3,800.00 |
| 9th year | €335,200.00 | €3,821.28 | €318.44 | €45,600.00 | €3,800.00 |
| 10th year | €289,600.00 | €3,301.44 | €275.12 | €45,600.00 | €3,800.00 |
| Remaining debt | €244,000.00 | €56,407.20 | €456,000.00 |
The prospective household budget then showed for us:
| Monthly household budget: | |
| Income | |
| Nikica | €3,200.00 |
| Michelle | €3,000.00 |
| Granny flat | €800.00 |
€7,000.00 | |
| Expenses | |
| Repayment | €2,000.00 |
| Interest | €600.00 |
| House additional costs | €350.00 |
| Insurance | €80.00 |
| Mobility | €250.00 |
| Granny flat savings | €800.00 |
| Additional savings | €1,000.00 |
€5,080.00 | |
| Monthly difference | €1,920.00 |
In other words, at the start of the undertaking we expect about €1920 left as budget for financing our everyday life, i.e., expenses, shopping, Christmas presents, common outings, and whatever else comes up. Besides the repayment of €2000, we would have about €1800 for special repayments which we would either use or spend on the more expensive things in life (keyword children).
The reality, given these unforeseeable events and expenses, will probably lie somewhere in the middle of the two financing scenarios as always. My main concern is an assessment of the overall calculation regarding completeness, risk, and plausibility. Of course, suggestions on anything else are also welcome. We are currently still seriously considering raising our offer for the house from €800k to €850k in view of the state of the house to be more competitive. But we cannot especially assess factors such as house ancillary costs for the size and the heated pool with any certainty. At least we can say more or less for sure that besides the heating, no modernization will be necessary for at least the first 10 years.
Enough input for now, we look forward to your opinions :)
Best regards & many thanks in advance!