Home financing - good offer?

Good day everyone, here are our data for our planned house purchase.

General information about you:

[*]Who are you? Family, we live in Cologne, currently renting
[*]How old are you? Man 36, woman 34
[*]Are there children? Child 1, 3 years, child 2, 1 year
[*]What do you do professionally? Man: civil servant teacher, woman: university lecturer (freelance)
[*]How many hours do you work? Man full-time; woman currently at home with youngest child, currently no income

Income and asset situation:

[*]What income do you have? 4500€ net
[*]How much child benefit is there? 438€
[*]How much equity do you have? 100,000€
[*]How much equity do you want to invest in the house project? 90,000€

Housing costs:

[*]current cold rent 975€
[*]current warm rent 1175€
[*]electricity 98€
[*]gas 100€
[*]water, sewage, garbage fees, street cleaning 80€
[*]telephone, internet, mobile phone 55€

Mobility costs:

[*]car insurance 51€
[*]tax 95€
[*]fuel 300€
[*]Is there a second car, motorcycle, scooter? Please specify all points again! When we move there will be a second car, car insurance approximately the same, fuel for the first car will be halved, so fuel costs will be about 300€ for both cars.

Insurance costs:

[*]private health insurance (also supplementary health insurance, daily sickness allowance etc.) 550€
[*]liability insurance (also pets) 7€
[*]pension insurance (also Riester, Rürup, etc.) 15€
[*]disability insurance 60€
[*]accident insurance 47€
[*]household insurance 105€

Living expenses: about 600€

Total income and expenses:

[*]total income 4938€
[*]total expenses 2277€
[*]balance 2661€
[*]of which total cold rent and forgone savings (e.g. savings rate for house) 975€ and 400€

General information about the property:

[*]How large is the plot? 1418m²
[*]What is the standard land value? 114€/m²
[*]Old building (1913), house type: slate-covered half-timbered with high ceilings, two full floors and attic, loft and basement
[*]How big is the house? 230m² living space, possibly demolition of extension, then 190m²

Construction or purchase costs:

[*]purchase price: 395,000€
[*]acquisition incidental costs 47,600€
[*]renovation and/or refurbishment costs: 105,000€ (including kitchen)
[*]total costs 550,000€

Cost breakdown:

[*]total costs 550,000€
[*]deductible equity 100,000€
[*]financing amount 450,000€

Necessary loan information:
(for multiple components specify for all components, for multiple variants please clearly separate):

Loan with three components:

1) we will sell a plot that we own within the next 12 months, from this we will repay the first component immediately in one sum (loan amount is roughly equal to plot value)

[*]loan amount 87,000€
[*]loan type: bullet loan
[*]nominal interest rate 1.5%; effective annual interest rate 1.64%
[*]interest rate fixed term: one year
[*]remaining debt at end of fixed interest period: 0€

2)

[*]loan amount 100,000€
[*]loan type: loan
[*]nominal interest rate 0.8%; effective annual interest rate 0.82%
[*]interest rate fixed term: 31.08.2031
[*]remaining debt at end of fixed interest period: 60,200€
[*]monthly rate 314€
[*]special repayments possible? 5%
[*]repayment rate change possible? no

3) building savings contract from Schwäbisch Hall, FuchsKonstant30, interest fixed for 17 years (0.86%), thereafter interest fixed for 13 years (1.55%) – after the 17+13 years the loan would be fully paid off

[*]loan amount 270,000€
[*]loan type: building savings contract
[*]nominal interest rate 0.86%, effective annual interest rate 1.27% (mixed calculation); after 17 years nominal interest rate 1.55%, effective annual interest rate 1.91%
[*]interest rate fixed term: 0.86% for 17 years; 1.55% thereafter for 13 years
[*]monthly rate 926€
[*]special repayments possible? 5%
[*]repayment rate change possible? no

Monthly total rate is 1,240€. Are the conditions good?

The structure would be too complicated for me. I like simple annuity loans with a fixed term, so you know what you have. Why not simply sell the property directly? Are some of the car costs per year and some per month? Definitely missing acquisition and repair costs. With a 100-year-old house, the question always arises whether 100k€ will be enough for renovation.

With a 100-year-old house, the question always arises whether €100k is enough for renovation.

More than a minor cosmetic renovation won’t be possible anyway with not even €400 per square meter. It won’t be a refurbishment.

A building savings contract is usually more expensive than an annuity loan. It is actually only used when the household budget is too tight and the bank(s) consider the interest rate risk to be too high. For the broker (if there is one), however, the commission is often even higher, which is why it is often offered.

First of all, the cost of living is very unlikely for 4 people. When you add up clothing, medicine, club, groceries. We are 3 and have considerably more :-)

Then: Is the daycare free for you?

Renovation excluding furniture, so around €80,000? The question is what will be done there. With only electrical and heating work, the money is almost gone.

Now to the actual topic, the loan. I find it strange and somewhat high. We pay 0.96% for a loan amount of €494,000 and about 80% debt capital ratio (we own the land) with an interest rate fixed for 10 years. And all of this combined in one loan, about 2 months ago when interest rates rose. They have fallen slightly since then. Go to the regional Sparkasse, Volksbank or/and involve 1-2 more financial advisors. There should be a better offer.

More than a minor cosmetic renovation is out of the question with not even €400 per square meter anyway. It will not be a renovation.

I would see it the same way; we are currently planning the energy-efficient renovation of a single-family house from the late '80s and are now dangerously approaching €200k.