Maverick101
2022-09-03 22:23:45
- #1
Hello everyone,
we would actually like to build a house. We have now also found a suitable plot of land, but the current interest rate development worries me a bit, whether this is still realistic and whether it can be sustained in the long term.
General information about us:
Cost summary:
We already have an offer for the house (fixed price guarantee 24 months), the land is still a bit open, the price will only be final after development. The plot itself is flat, so I do not expect any nasty surprises with the earthworks, also no basement. We already have a new kitchen and furniture - so we would take them along and would only have to buy a few individual cabinets. The pre-sampling is still outstanding - but I could also do part of it as personal work. Some other things will probably still come up, but our "comfort-wish-must-have things" have already been included in the offer price and clarified in advance.
Ultimately, I would like to do it so that the house is financed and the rest runs through equity.
Assuming 3.5% interest (15-20 years fixed interest) and 2% repayment, I now come to €1,833 per month. Since interest rates are currently rising slightly again - but I will not/cannot sign anything before the land is "safe," I almost fear it will go towards 4% (€2,000). We ourselves have been saving an additional €1,750 every month for almost 2 years now (increased to €2,000 since 02/2022) as equity buildup and as a "repayment test." This has not bothered us so far, I also believe that we will manage well with it, especially since income will increase in the next few years. As soon as my wife works again, a good share will also be added.
However, I am still unsure whether this might already be borderline for our income. I really cannot assess this at all - on the internet there are so many, partly contradictory things. My bank advisor somehow takes a more relaxed view - unlike me. I have also been reading here in your forum for a while now - some statements like (net 5000 for a new build is no longer enough) scare me.
I would appreciate an honest assessment from you. :)
Best regards
Mave101
we would actually like to build a house. We have now also found a suitable plot of land, but the current interest rate development worries me a bit, whether this is still realistic and whether it can be sustained in the long term.
General information about us:
[*
- Who are you? M + F
[*]How old are you? 30+29
[*]Are there children? 1 + (soon) 1
[*]How many hours do you work? 38 / 0 - currently on parental leave
Income and asset situation:
[*]What income do you have? €5200 (net) (incl. ElterngeldPlus)
[*]How much equity do you have? €250k
[*]How much equity do you want to invest in the house project? €175k
Housing costs:
[*]no rent costs
[*]additional costs: €200
Mobility costs:
[*]2x car, each owned
[*]approx. 500 km regular driving distance per month with currently one car
General information about the property:
[*]How large is the plot? 781 m2
[*]new build
Construction or purchase costs:
[*]land costs: €80k - €100k (price will only be finalized in October, incl. ancillary costs)
[*]prefabricated house: turnkey (incl. bathrooms, floor coverings, and foundation slab): €405k
[*]additional construction costs: €70k
[LIST]
[*]site preparation: €15k
[*]electricity/water connection: €10k
[*]completion: €10k
[*]insurance: €5k
[*]furniture: €10k
[*]buffer: €20k
[*]outdoor facilities, garage: would be done later (40k home savings plan not yet eligible)
Cost summary:
[*]total costs: €575k
[*]deductible equity: €175k
[*]financing amount: €400k
We already have an offer for the house (fixed price guarantee 24 months), the land is still a bit open, the price will only be final after development. The plot itself is flat, so I do not expect any nasty surprises with the earthworks, also no basement. We already have a new kitchen and furniture - so we would take them along and would only have to buy a few individual cabinets. The pre-sampling is still outstanding - but I could also do part of it as personal work. Some other things will probably still come up, but our "comfort-wish-must-have things" have already been included in the offer price and clarified in advance.
Ultimately, I would like to do it so that the house is financed and the rest runs through equity.
Assuming 3.5% interest (15-20 years fixed interest) and 2% repayment, I now come to €1,833 per month. Since interest rates are currently rising slightly again - but I will not/cannot sign anything before the land is "safe," I almost fear it will go towards 4% (€2,000). We ourselves have been saving an additional €1,750 every month for almost 2 years now (increased to €2,000 since 02/2022) as equity buildup and as a "repayment test." This has not bothered us so far, I also believe that we will manage well with it, especially since income will increase in the next few years. As soon as my wife works again, a good share will also be added.
However, I am still unsure whether this might already be borderline for our income. I really cannot assess this at all - on the internet there are so many, partly contradictory things. My bank advisor somehow takes a more relaxed view - unlike me. I have also been reading here in your forum for a while now - some statements like (net 5000 for a new build is no longer enough) scare me.
I would appreciate an honest assessment from you. :)
Best regards
Mave101