Financing - Your opinion is needed

In general, the financing looks good.
However, please really take another look at the incidental construction costs and plan a buffer.

Here are a few examples from us:
- Geothermal drilling – no one can estimate 100% whether the projected drilling depth is sufficient. Despite careful planning, the drilling cost us almost 2,000 euros more.
- Bathroom sampling: We are rather practical – so no "luxury people." About 7,800 euros were budgeted for bathroom and shower bathroom equipment (including bathroom furniture). During the sampling, we were guided through the large showrooms (no prices displayed), presented our ideas, and either agreed to or rejected what was shown. Three weeks later – when the offer was received by the general contractor – we were asked whether we had ordered golden faucets: offer price 16,000 euros + VAT. Our general contractor then sent us to the sanitary company, which had a small sample room. There we ended up with approx. 9,500 euros including VAT. Only the toilet selection remained the same and the shower panel was even upgraded. Still, an additional cost of about 2,000 euros.
- Tiles: We do not need super expensive Italian marble tiles (or something like that). But since we are only building once, we sampled based on practicality AND preference. So the tiles also cost about 2,000 euros more.
- Painting work – was significantly cheaper for us (materials) (labor = own work)
- Earthworks – this depends on your property and planning. Our property has partly a sloping site. We built in a way that we can use the upper terrain. However, we need to install a fence as a fall protection. Our neighbors chose differently and completely excavated their rear terrain. Consequently, they had to pay for the additional earthworks as well as the transport/deposit fees for the soil. Additionally, they have to secure our (original) terrain from slipping (wall / L-stones).
- Since we are on the topic of terrain – additional costs may still arise due to soil conditions – or is there already a soil report?

These are just a few examples from our practice. How much they apply to you, you can best estimate yourselves.

Long story short: You should always plan a buffer for unforeseen costs. Also, a buffer for predictable costs (keyword: upsampling). You will often end up choosing the somewhat more expensive product since you are probably only building once.

Hello, and many thanks for the tips! These are all understandable points that we have considered. A ground survey is available, and additional foundation costs of about 6600 are expected. The house operating costs (that is electricity, water, repairs, etc.) roughly correspond to the rent we are still paying for our apartment - and which is included in our calculation of monthly expenses, so that was already taken into account. By the way, we do not have to pay closing costs at the bank. Through personal contribution, we are getting a photovoltaic system quite cheaply, so this point will likely remain small. The property is not on a slope. A buffer for sampling is considered. @ f-pNo: Since you also have geothermal heating, we would be interested... what pump do you have and are you satisfied with it? Presumably with a central ventilation system, also with heat recovery? Because the recovery might possibly be an extra cost that we would initially put aside, meaning we are considering doing the whole thing without recovery... What are your experiences?

Hello,

Honestly, I am surprised that the feedback on your post is overall so positive and that the comments only refer to the possibly higher costs. I have had different experiences.

We are also still relatively young (27 and 28 years old), have a somewhat higher income (currently €6100/month net without child benefits or special payments), but already have one child and relatively high expenses for a part-time study program alongside work. Our equity (€60,000) is slightly above yours and we have 2 cars.

We wish to have a 2nd and 3rd child. We have followed the advice in this forum and postponed the house wish for a few years. Why? We have calculated a total of €550,000 for the house construction without a buffer (relatively expensive plots of land in the Stuttgart area). The equity is not even enough to cover the additional costs (including outdoor facilities, kitchen, etc.).

Nevertheless, I think the amount would be doable with our income. BUT:

The desire for more children. From you I read a planned rate of €2400/month. You want 2 children. With children, not only will your salary decrease when you go on parental leave, but the costs will also increase. If you want to work part-time/full-time again, you have to consider the childcare costs. For us alone, these amount to about €400/month per child (I also work full-time).

Assuming you do not work full-time again, the loan rate will make up >50% of your income with less income and higher expenses.

So, I would feel uneasy taking such a high amount with the low equity, knowing that the circumstances will change with children in the next 2-3 years without knowing the concrete impacts.

We will now save equity for another 2-5 years until we have a secure feeling about where we stand professionally at that time and what the further family planning looks like.

The period in which we will now save will also be a test for us if we can/want to forgo this money monthly and if it is worth it to prioritize the house construction over other needs. You are similarly young as we are but do not have a child yet. Why must the house construction necessarily happen now? You are both still career starters, just starting to earn properly now. Don’t you have the desire to travel first, settle into your professional life, and then in another 2-3 years enter the next phase of life including house construction?

Please don't misunderstand, this is by no means a kind of lecture, but merely food for thought that I myself was very grateful for a few weeks ago.

Best regards

Anna

I see it the same way and have already raised this concern. It should be calculated in detail beforehand. Income is not always the same and children or a car cost money. Do you want to work for years just for the house and not even e.g. 3 weeks in Asia or the USA? As teachers, you can only travel during the holidays anyway, that costs money. Later with a child, you can only travel during the holidays or do you want to vacation in the garden with the child? I would wait a few more years, a house won't run away from you. How much do you currently save per month for e.g. a new washing machine, refrigerator, TV, PC etc... None of it lasts forever.