Home construction financing - House price and ancillary construction costs

Hello,

I have a question about our construction project.
First, a few key data points:

- My income (27 years old): €2100 net (13 salaries, still entry level, in public service for 4 years, salary increases planned and foreseeable)
- Partner’s income (29 years old): €2050 net (14 salaries, project management in a large insurance company, trend also rather upwards)

Equity currently amounts to about €20,000, of which we want to pay incidental acquisition costs and the kitchen. Additional equity is available but should be used for immediate repayment of the [Bafög] as soon as possible.

Unfortunately, we currently do not have more equity because a car was purchased (4-year-old Golf6) and after our studies we first had to invest a significant part of the money in furnishing our apartment.

At the moment, in addition to the €900 warm rent, we are putting aside almost €1000 just for the house. Vacation, leisure, etc. are saved separately.

No children are planned in the next few years.

We now have the option to purchase a very cheap plot of land in a good location (635 sqm / €40,000 / fully serviced) with a 20-minute connection to the state capital.

Currently, we are calculating the following construction costs, which have already been offered to us by the general contractor:
- Single-family house / 133 sqm / KfW 55 with floor coverings and all priced additional wishes: €234,000
- Additional construction costs: €30,000
- Plot of land: €42,000
- Kitchen from equity: €10,000
- Materials for electrical work (wallpapering and painting) from equity: €2,500

We have received an offer for a loan of €270,000 with a 15-year fixed interest rate of 2.59% and initially want to repay at 2%, as well as make special repayments between €3,000 and €5,000.
Another component is a €50,000 KfW 153 loan at currently 1.5% interest and 3% repayment.

The buffer from the loan is planned for overruns in incidental construction costs and will flow into access road and carport if everything goes well.

All in all, we expect to be able to service a rate of €1,200 quite well.

Are we completely on the wrong track with the scenario presented due to rose-colored glasses, or is the construction project feasible?

The house price is definitely fixed, it is a large German provider with a Musterhauspark on the A7 and a V in the name ;-) The slightly lower price probably comes from the fact that we only want to build 133sqm, as that is completely sufficient for us. The soil survey will be done at the end of September before signing. The GU has already built 2 houses in the development area and had significantly underestimated the budgeted costs for both. Children will probably come at some point, but with minimal loss of an earner (after parental leave, a maximum of 1 year off) and only when we have saved enough buffer for it. Care is guaranteed in that we can incorporate home office as a full-time arrangement and both parents and grandparents live locally.

Hello,

House price is definitely fixed, it’s a large German provider with a model house park on the A7 and a V in the name ;-)

Yes, except for upcoming extras ;)

- Single-family house / 133sqm / KFW 55 with floor coverings and all priced-in extra wishes: €234,000

Such as?

The somewhat lower price probably comes from the fact that we only want to build 133sqm, since that is completely sufficient for us.

No, that’s because Andreas V. has recently started sponsoring some of his standard houses, but in doing so leaves out one or another thing that used to be standard in earlier BBs. Re-plan and suddenly the numbers look “normal” again :D

Rhineland greetings

The base price of the house amounts to €200,000. Included are: electric roller shutters throughout the entire house, redesigned bathroom with larger shower and shower wall/door made of glass as part of a package offer, knee wall elevation, empty conduit for photovoltaics in preparation, sound-insulated supply air valves, shower in the ground floor bathroom, 2 roof windows, tiles completely on the ground floor, laminate completely upstairs (also from the package), floor tiles in a wild pattern, desired doors and handles inside and outside, chimney for an external air-independent fireplace.

In total €230,000.
Additionally, a buffer for extra electrical installations of €5,000 (Cat7, SAT, roller shutter control).

So what now? In the first post "no children for now," further down then "children will come eventually"...

Get clear about that, because your wife won't have many more years until it becomes a high-risk pregnancy. So there aren't 10 years left to wait. So if a child, then probably within the next 5 years.

I wouldn’t see it as that radical. Even at 35 years old (or later), you can still have children, certainly always with a certain risk, you’re right about that. And at some point, the train has simply left the station.

Nevertheless, I have to admit that I (as a woman) would have a problem putting a desire to have children (which will probably come for you sooner or later) on the back burner until there is "enough buffer." I’d rather adjust the planned house or the timing of the house construction/purchase to the (financial) situation with a child.