Fixed interest rate financing without equity?

Repaying with 1% is as sensible as driving the wrong way onto the highway.

Try using a repayment calculator. If you want to be finished by retirement. It will then spit out how high the initial repayment must be.

The argument "repayment-free year ... = less burden" is great, but you simply pay 0 into the pot.

Don’t forget reserves and additional burden through insurance.

I see the problem here more in that you have come across a pushy person who absolutely wants to complete their deal. It starts with the fact that you probably will never manage with 20k additional costs. Because he wants to sell you the land and the house together. That is already 10,000 euros in taxes. Think it over carefully and get a second offer.

Try using an amortization calculator. If you want to be finished by retirement.

You’re right. If I increase the initial repayment to 2%, then according to the amortization calculator on the Interhyp website, I will be completely finished after 31 years and 3 months. However, the monthly expense rises to 808.0 euros. Well, 150 euros more. Thanks, now I understand better how such financing works.

It starts with the fact that you probably won’t get by with 20k additional costs. Because he wants to sell you the land and house together. That’s already 10,000 euros in taxes. Think it over carefully and get a second offer.

The incidental construction costs are composed as follows:

Electricity connection approximately €2100
Natural gas connection approximately €2600
Water connection approximately €2300
Telecom approximately €400
Sewer connection on the property up to 10 linear meters €1700
Inspection shaft €900
Connection of rainwater pipes to the sewer €800
Construction electricity and construction water €1400
Structural engineering calculation €1200
Building permit approximately €1000
Surveying office approximately €2500
Possibly terrain leveling €700
Plus a small buffer €2400
Totals €20,000.

Since we share our property with another family, I thought that €20,000 would be sufficient. Is anything missing from the list?

It is correct that the advisor offers us land and a house from a single source, but I unfortunately don’t know if they are actually sold together by one company. If that is the case, why do so many taxes add up? Do we then have to cover €10,000 during the construction period?

Thank you very much for taking the time to answer our questions competently.

Best regards, Andreas

Good evening Andreas,

A semi-detached house with about 100 sqm, with a small plot (380 sqm) and a prefabricated garage will cost around 190 thousand euros (land - 36 thousand euros, the house 125 thousand euros, additional construction costs - 20 thousand euros, painting, flooring, and outdoor facilities done by yourself), which absolutely meets our wishes.

36 thousand euros for a plot - ? In addition: a house of about 100 sqm should cost roughly 165 thousand euros without painting and flooring; outdoor facilities not included.

So what exactly should be included in the 125 thousand euros for the house? The shell construction and rough installations, and with the rest you have to see where you stand?

What about your advisor? Has he checked this supposed bargain in the interest of his client (i.e., you)? Because - assuming I am completely mistaken and the bargain is legitimate - you won’t make it with 20 thousand euros for additional construction costs and your equity is also not enough to pay for the painting and flooring!

Rhenish regards

It is a turnkey semi-detached house without painting and flooring, which actually costs us 124,500 teuro. 100 sqm with some extras like underfloor heating in the bathroom. Solid construction, meaning brick on brick. For painting, flooring, and outdoor area (materials only) another 10,000 is planned, but I don't know if that will be enough. The work for that is planned as a DIY effort.

Does it really sound that unrealistic?

Yes, no matter where you build.

Just for orientation: 122 sqm for 270 TEUR, except insulation, photovoltaics, electric shutters and geothermal energy no further extras.

You have to pay real estate transfer tax on the purchase price, and the notary and the court also take a few euros for the contract, transfer and land charge.

These two items are completely missing from your list.

Is the house including earthworks? I can hardly imagine... And 100 sqm for 4 people... we have 122 sqm without basement for now 3 possibly 4 people. Even that is already cozy.