Financing volume 410k € Feasibility assessment

I don’t understand. I have a total price from the general contractor of, for example, €300,000. Services are all listed in the scope of work description. I then pay according to a "milestone". So, for example, after the completion of the earthworks 5% = €15,000 minus always 1% discount. Prices are divided by trade, yes. But this was about prices here. And as a general contractor, I would initially set the prices higher so that I have to advance as little as possible.

Exactly. You have no control over how the general contractor breaks that down. What do you do if the general contractor goes bankrupt after, for example, the shell construction? Or botches so badly that you have to part ways with him. Or simply stops building. Then you have paid more than necessary.

Exactly. You have no control over how the general contractor divides that. What do you do if the general contractor goes bankrupt after, for example, the shell construction? Or if they botch the work so badly that you have to part ways with them. Or simply stop building altogether. Then you have paid more than necessary.

We have it exactly like that, payment according to construction progress.

The payments are different in "size". For each billed payment, I receive a construction progress report. This also states the construction value of the completed status.

Currently, we have a construction value of about 126k, I have requested 131k so far. But in the difference, there are payments to the waterworks and sewer works etc.

Since the payments are always due only after completion of the trade and have a lead time for payment (in my case 8 working days), I can check in the meantime whether, for example, the billed windows have actually been installed. And if there are discrepancies, they will be clarified.

If the general contractor goes bankrupt now, I have a counterpart value for what has been paid so far. And the last 10% are only due when the house has been accepted. We are also accompanied by our building surveyor. If there are major defects, we can of course withhold money then.

Back to the actual topic. @TE: I think you are (mentally) already further ahead than you are revealing here.

The rough conditions are also known. Change of repayment, special repayments, 10% reduction of the volume if less is needed after all, too. But we want to repay properly and not overburden ourselves.

What does that mean in numbers? I couldn’t help but smile at “reduction of the volume.” Assumption: €410k, 1.5% interest, payment €1350 is about 2.5% repayment, theoretical term about 30 years. Your main concern was the €410k, whether it is affordable, especially if you have children on the way/present. You have received assessments about that. What is your conclusion now?

Exactly. You have no control over how the general contractor divides it. What do you do if the general contractor goes bankrupt after, for example, the shell construction? Or if they botch things so badly that you have to part ways with them. Or simply stop building. Then you have paid more than necessary.

You take care of these things beforehand by not choosing just any general contractor, but one who has been on the market for over 20 years and does not rely on glossy catalogs and numerous show homes, but lives by word of mouth. For this purpose, you take a construction supervisor. In our case, a couple (the woman is an architect, the man a civil engineer). This already reduces the chances of something going wrong. Certainly not to 0%, but to a level where I can live with the residual risk.

Back to the actual topic. @TE: I think you are (mentally) already further ahead than you reveal here. What does that mean in numbers? I had to smile, though, at "reduction of the volume." Assumption: 410 k€, 1.5% interest, installment 1350 € is about 2.5% repayment, theoretical term about 30 years. Your primary concern was the 410 k€, whether it is financeable, especially if offspring is on the way/there. You have received assessments about this. What is your conclusion now?

Morning :) so my rough assessment at the current time is that it fits for us, that we can manage it. Even if the numbers are somewhat overwhelming. But: more reliable calculations are still needed, both on our expense side and on the construction costs side. Then calculations will be redone. Nothing will be decided definitively before that, of course. It was clear that there would be different opinions here, and that's great.

The work is done beforehand by not taking just any general contractor, but one who has been on the market for over 20 years and does not shine with glossy catalogs and dozens of model houses, but lives by word of mouth. For this, you hire a construction supervisor. In our case a couple (the woman is an architect, the man a civil engineer). This already reduces the chances that something will go wrong. Of course not down to 0%, but enough that I can live with the residual risk.

"Our" controller is once again blowing smoke that isn't there. :D