Financing - Your opinion is needed

Well, a different calculation for us...

I am not reading the naive initial threads for the first time and have also recently built myself, so I already know what I have to write ;) Take a look here - a parallel thread that should serve as a wake-up call that you absolutely should not underestimate emerging costs that you have not considered:

To our defense, at least the interest-only year of the Kfw is running ;-)

Yes, unfortunately. The interest-only year in the Kfw loan is made attractive that way, but an interest-only year is a disadvantage because the repayment must be made anyway. It does not help you because the purchases are made during the construction phase — and compared to that, the "saved" repayments are peanuts.

In my opinion, Yvonne means with the buffer money for additional foundation costs or upgrades. It is always better to set up financing generously for all eventualities than later – if at all possible – having to refinance expensively ;)

That's right! And everyone who has built knows that it is not about a four-digit sum, for some it is a 2 or 3 in front due to the upgrade. Don’t get me wrong: I am not trying to spoil your mood here – especially not because of the salary. But your calculation is wrong and must be properly adjusted upwards!

Thanks again for your hints! Maybe another mistake on my part: The entire construction project amounts to 516,000 euros. From that, we subtract 40,000 in equity, and then 476,000 remain that we borrow from the bank. That means that overall, with ancillary costs (whatever exactly they include, in any case everything that is not the pure house price), we have the following available: 40,000 equity + 20,000 above-mentioned ancillary construction costs + 15,000 above-mentioned outdoor facilities + 10,300 property transfer tax + 3,200 notary = 88,500 euros. Did I maybe just present it incorrectly/poorly in the first post?

So, I can definitely rule out being a math teacher. Now you are mixing equity with costs... The first post was already telling: construction project calculation minus equity equals the loan amount. And I just want to explain to you that everyone needs reserved equity for the kitchen and stuff as well as an additional buffer, which nobody calculated for you beforehand. And that your ancillary construction costs are set way too low. And if you insist on your numbers: yes, all good, it will probably work out :)

No no, we are not insisting on our numbers! Otherwise, we wouldn’t have asked for opinions. It is just always hard to understand because everyone calculates the additional costs differently or understands different things under it. So, today we recalculated everything again and thought it over back and forth, and we are still of the opinion that we can definitely achieve a satisfactory rate, and a higher total amount can quite possibly result. And then still give up on electric shutters, and everything is fine ;-)

Retain as much equity as possible. I would stretch the financing so far that no disadvantages arise due to higher interest rates. Possibly, I would also negotiate a buffer. That means the last 10 percent of the financing does not have to be drawn and is used as a buffer. That way, you would have a bit more leeway. Otherwise, you always have to draw the entire financing before the repayment starts.

What does it look like if a parent works only 50% after parental leave or if there are 2 children and they work only 30% for 1-2 years, etc.? How high are the daycare costs with you? Will a car be necessary then, which again has follow-up costs.... Do you want to pay for the car in cash or also by credit? How often do you want to travel, especially in your younger years.... if not now, then when? A house has ongoing additional costs such as electricity, water, garbage, taxes. How much have you budgeted for that per month? How much do you want to set aside monthly for repairs? "As a homeowner, you should plan about 2 euros per square meter of living space per month for ongoing additional costs.

[*]For repairs and other unavoidable work, you should calculate 50 cents per square meter of living space as reserves every month."

Can the forum participants confirm this here? That is roughly 200 sqm, so 400€/month in additional costs and 100€/month in reserves = 500€ + 2400€ loan installment = a total of 3000€ per month for the house/loan, so over 50% of the income goes towards repayment/additional costs. ------------------------ I have removed the link, please observe the forum rules. Thank you! Construction expert