Financing single-family house 150 sqm plus basement granny flat

Hello, we are facing the decision to build a house and how we want to finance it. For that, we would like to get your advice.

We are planning the demolition of our house and a new build on a slope with a granny flat.

The plot belongs to us and only the new build would need to be financed. Also, your opinion on whether the whole project fits within the framework would be appreciated.

General information about you:

[*]We are both 26 years old.
[*]No children
[*]Planning to have a child in about 4 years
[*]We are a merchant in e-commerce and a civil servant

Income and asset situation:

[*]Net income together is 4850 euros
[*]Additionally, we have 400 euros extra income due to the granny flat in the basement
[*]Equity would be the plot

Expense situation:
Expenses that are already included in other positions can of course be left out. This list is not exhaustive and can be expanded or summarized as desired. Please make sure to indicate all costs monthly, even if they only occur annually!

Housing costs:

[*]600 cold rent
[*]800 warm rent
[*]100 euros additional for internet, Sky etc.

Mobility costs:

[*]Car financing 350 € monthly
[*]100 € insurance monthly
[*]100 € tax annually
[*]150 € fuel

Insurance costs:

[*]500€ private health insurance with supplementary insurance
[*]Another 100 € additional insurances

Living costs:

[*]500 € for food and drinks
[*]100€ for restaurant visits
[*]100€ for drugstore
[*]100€ for clothing
[*]Leisure activities 150€ monthly
[*]1 year remaining loan repayment of 200 euros

Total costs of 4150€ including loan payment plus additional incidental costs arising in the house.

General information about the property:

[*]Plot size is 930 sqm
[*]House will be 10.86m x 10.3m
[*]Plot value approx. 130,000 €
[*]New build
[*]150 sqm living area plus 60 sqm granny flat

Construction or purchase costs:

[*]380,000 € construction or purchase costs (including architect, structural engineer)
[*]50,000€ additional construction costs (e.g. utility connections, soil surveyor, construction power etc.)
[*]20,000€ outdoor facilities/terrace, paths, garden design, fences etc.

Other costs:
Kitchen and furniture through equity
Cost summary:

[*]450,000€ financing amount

We have now discussed several financing options and have a favorite. It would be a composition of an annuity loan for 15 years combined with the additional saving of a home savings contract. This will redeem the loan after 15 years in order to minimize the interest rate risk. Many people do not think much of such a "home savings account." Therefore, your opinion on our financing variant would be appreciated.

15 years annuity loan:
Fixed nominal interest rate: 0.92%
Effective annual interest rate: 0.94%
Monthly rate: 1093€
Repayment: 2%
Loan amount: 450,000€
Fixed interest rate period 15 years
Max. special repayment: 5%

Expected residual debt: 304,645€

Additionally:
BHW Building Society
305,000€ home savings sum
Total duration 29 years
Saving period 15 years with credit interest of 0.10% and a monthly savings rate of 538€
Home savings balance of 94,000€ at the end of the saving phase
Contract fee: 3080 €
Start of the repayment phase: 1.06.2035
Loan term 14 years
Loan amount: 214,000 with fixed nominal interest rate of 2.35% and effective annual interest rate of 2.53%
Monthly rate of 1500 €

We have compared all financing options and these costs are the lowest.

Total interest costs approx. 89,000 €

We look forward to your tips and opinions

What do you want to hear?
You already have all the answers in the other thread.

What do you want to hear? You already have all the answers in the other thread.

Yes, a few days ago I already created a thread with one account. Only I unfortunately can no longer log in. So once again new and also summarized in more detail, because it was already very confusing with the information. Unfortunately, I cannot contact a moderator to request the deletion of the account.

It amounts to almost €20,000 for the annuity loan, and I do not understand the catch why financing with an additional home savings contract is generally so frowned upon.

I find the loan too high. After 15 years still over 300,000 in debt...

Additionally, due to the granny flat in the basement, we have 400 euros extra income

Provided it is rented out. And then deduct the taxes. I'll put it this way: you have to have the financial means for a granny flat. Furthermore, the rusty heap or the hobby Porsche of the subtenant must not get in my way, and I don't want to see or hear a stranger in my financed dream house. Otherwise, plan without a granny flat and sleep better.

Do you actually read the texts carefully? There remains a "remaining debt" of 210,645 euros since 94,000 euros of equity have been saved up in the building savings contract by then. Regardless of whether it can be paid off early directly, it is equity after all. Besides, the OP is 26 years old and will thus be 41 in 15 years, when some people just start building. So you can comfortably pay off almost 40 years. Even if children come in 4 years, they will be past the worst (construction and purchases), and as a civil servant she also has all the benefits (parental allowance, returning to work).

To the OP. You have quite similar conditions to us. We are just 3-4 years older and it is not 4 years until the first child. It definitely works. We built with similar parameters. I would still look into whether an additional granny flat is necessary.

I think the loan is too high. After 15 years still over 300,000 debts...


Provided it is rented out. And then deduct the taxes. I'll put it this way: you have to have financial leeway for a granny flat. Furthermore, the rust bucket or the hobby Porsche of the tenant must not stand in my way, and I also don’t want to see or hear a stranger in my financed dream house. Otherwise, plan without a granny flat and sleep better.

Yes, I already created a thread with an account a few days ago. Unfortunately, I can no longer log in. So here is a new and more detailed summary, because the information was getting very confusing. Unfortunately, I cannot contact a moderator to request the deletion of the account. It amounts to almost €20,000 for the annuity loan, and I don't understand the catch as to why financing with an additional building savings contract is generally so frowned upon.

We were told about the building savings contract that it might be the case that you cannot repay the remaining amount with the building savings contract, meaning you only get the money you have paid in. We were also only offered this constellation with a building savings contract at the red bank. Everyone else offered a classic annuity loan, which we decided on. Have them offer you 20 or 25 years so that the residual debt is manageable.