Financing single-family solid house for 296,000 Euros

Hello community,

we are a "young" family and want to move into our own four walls. I am 31 and my wife is 28 years young. We have a 2-year-old daughter and want to have another child this year.

We want to build a solid house for 296K€. We purchased a plot of land 2 months ago for 55,005€ and contributed 15,005€ equity. We have calculated ancillary construction costs including a reserve of 40,000€. So approximately 376K€ needs to be financed. We currently have about 15K€ in savings that we want to leave untouched.

Because our family planning is not yet complete, we want to remain flexible and initially repay a small rate.

At Ing-Diba, we could get 380K€ with a 15-year fixed interest period and an effective annual interest rate of 2.34% at a rate of 1,045€ but with only 1% repayment. Rate adjustments are possible twice within the 15 years as well as the option to make special repayments (between 1,250 and 19,000€).

With 2% repayment, the rate would be 1,360€.

Do you think it is advisable to "start small," adjust the rate after 3 years, and consistently use special repayments?

We currently earn about 5,200€ net together, but due to a job change and parental leave, I expect about 4,500€ for the coming year. An increase in income is expected in about 3 years. By moving to the countryside, we would also save a remarkable 400€ on childcare. In 6 years another 400€ expense will disappear.

Admittedly, it’s difficult to get a clear picture and somewhat risky due to family planning. However, we don’t want to wait another 5 years.

With 1% repayment, discipline is of course required and a quick increase is indispensable; otherwise, after 15 years a considerable sum will still have to be repaid despite interest payments in the amount of 119K€ already made.

In April, the Z15 loan will be revised, which might then be an option for us. At the moment, we are over the income limit.

What do you think?

Hello,

What is meant by the 296000 house price?
Is that a catalogue price or already calculated with special equipment? You should always round up with a buffer.
Do you have additional travel costs due to the move to the countryside? Second car?
1%... I thought this low repayment rate was not even offered...
And what would the income be with offspring?

Regards, Yvonne

The house would be finished except for wall and floor coverings including double carport and 18 sqm storage room in solid construction.

Additional travel costs of about €200 are to be expected.

I assume that we will have to manage with €4200-4500 per month for the one year of parental leave.

In April, the z15 loan will be revised, possibly then an option for us. Currently, we are above the income limit.

What do you think?

As soon as one is on maternity leave or receiving parental allowance, only that one income will be considered for the z15. It might then be sufficient, otherwise 1% amortization is already very low. We did not like the 2% with the z15.

The house would be finished except for wall and floor coverings including double carport and 18 sqm storage room in solid construction.

.

So a base price without the special equipment for electrical and sanitary?

The price for the floor coverings should be increased to at least 320,000 for the calculation with the EL. Exterior facilities are also missing, for which at least 10,000 is needed for the simplest equipment and paving.

Best regards, Yvonne

Have the 1% from Ing-Diba been specifically offered?