Financing single-family house construction approximately 140 sqm

We received a kfw loan (public funds) for the practice. The interest rates were very close to the real estate interest rate and the decision was a no-brainer.

The interest rates on the overdraft are significantly higher. Hence my question about the type of loan.

Good luck with the takeover!

Is that a criterion for debt service ability? And if he only builds at 65, it would not matter - the main thing is that it is financeable.

I bought at 55 and had to submit significantly more documents including pension forecast, proof of life insurance, pension insurance, company pension, Riester from me and my wife. At 65 it must be paid off within 10 years. No bank wants to deal with the heirs.

Approximately 450 sqm for a rounded 85,000 euros + additional costs + 17,500 euros investment costs for a heat pump that supplies the new development area (fully developed, no hillside or similar)

On it, a single house of about 140 sqm with medium equipment level without a basement could be built turnkey (ready to move in). We calculate about 500,000 euros including additional costs, we will lay out the garden ourselves.

including additional costs, we will lay out the garden ourselves.

Property transfer tax also applies to the heat pump, right? If you have never laid out a garden from scratch, forget it. Even if you can operate an excavator, it will be expensive unless someone rents you the equipment very cheaply. As a doctor, the risk of injury would be far too high for me, and as a doctor, you should earn more than a landscaping gardener costs.

Real estate transfer tax also applies to the heat pump, right?
If you have never created a garden from scratch, forget it. Even if you can operate an excavator, it will be expensive unless someone lends you the equipment very cheaply. As a doctor, the risk of injury would be far too high for me, and as a doctor, you should earn more than a landscaping gardener costs.

I do think so regarding the real estate transfer tax, I am currently calculating with 120,000 euros all inclusive. We will have to see about the garden whether we have it done (proportionally). If the practice sale goes well, there might possibly be some money available for it.

Regarding age: At 37, I still have (more than) 30 years of working life ahead of me, my wife is currently 31 years old. I don't believe that banks and lenders will sound alarms over that.

I bought at 55 and had to submit significantly more documents, including a pension forecast, proof of life insurance, pension insurance, company pension, Riester from me and my wife. At 65, it must be paid off within 10 years. No bank wants to mess around with the heirs.

None of that is mandatory. And having it paid off within 10 years at 65 is simply nonsense. I financed at the end of my 40s with a term of 40 years – so I will be almost 90 by the time of repayment. And since I work at a bank myself, I also know that not all of the documents/information you mentioned are necessarily required. With the revision of the residential real estate credit directive, the financing route is also wide open again for retirees.

We have now received the green light for a preliminary inquiry via Dr. Klein at a local Sparkasse.

216k contributed equity
616k total volume

We would now first use the equity to buy the land and simultaneously talk to the general contractor to have them complete everything so that we can secure the KFW300 + additional promotional loan.

Currently, the financing would look approximately like this:

Nominal / Effective	Loan amount	Fixed interest period	Monthly rate
1.88 % / 1.92 %	400,000 €	10 years	1,399.71 €

For the KfW, we would choose five repayment-free years on 220k. The main thing is that the fund is not empty tomorrow.
Repayment rate 2.667 % and 1.902 %; 35 years term.

In the meantime, I have already considered building somewhat larger, but recently read a pretty interesting study about large houses and family alienation, so I feel quite comfortable with 145 sqm and the rate would still be manageable if I - for whatever reason - returned to an employment relationship. Especially since you don’t know what interest rates will look like in ten years, and we wouldn’t have repaid that much by then.