House Construction Financing Realistic

Hello everyone,

A little over a year ago, I asked the forum a question about the financing
of the planned house construction.

Situation 02.2014:

Wife's salary (28): 0 € (Unemployed)
My salary (35): 2500 € X13
[I]Equity capital: 50000€

Expectations 02.2014:[/I]
Land: 45000€
House: 200000€
Other costs: 40000€
Total: 285000€

Monthly rate: 1000€

Since then, quite a bit has changed:

Situation 04.2015:

Wife's salary (30): 1200 € X12 permanent since 08.2014
My salary (36): 2500 € X13 + bonuses + overseas deployments bedroom (5-year average 6000 Euro)
Equity capital: 80000 €

Expectations 04.2015:
Land: 45000€ (Including property transfer tax, notary fees, etc.)
House: 250000€ (Simple single-family house without basement)
Additional construction costs: 65000€ (House connections, earthworks, etc.; etc.; etc.)
Total: 360000€

Target maximum rate 1300€ (+ special payment approx. 5000 Euro annually)

Planned start of construction 2016

Before the start, a further 20000€ equity capital is to be saved (total 100000€).
The loan amount would amount to 260000€.

Questions to the forum:

[*]Is the newly set financing amount for the planned house construction realistic?
[*]Is the planned loan framework realistic and manageable with the targeted rate?

Regards MCN

Does the wondrous increase in income also lead to a miraculous increase in children? Is the additional equity accumulated within this short period from the income (hardly conceivable)?

Overall, it really looks nice at the moment.

Hello,
first of all, thank you for the response.

The salaries are of course understood to be net. Since the first post 14 months ago, we have been able to save an additional €30,000 in equity. Therefore, a further €20,000 is feasible for the next 12 months.
A household budget book is also kept, which gives my wife and me a clear overview of the incurred costs.

At the moment, we can save over €2,000 monthly.

A child is planned for 2016, my wife will stay at home for half a year. After that, mainly the parents-in-law will take care of the child during working hours. Everything is arranged as far as that goes.
Salary reduction is therefore manageable.

Regards, MCN

You live extremely frugally and have a good overview of your finances. I do not find your intentions excessive either, but rather think that you have both feet firmly on the ground.

You certainly cannot make a sufficient statement here without "knowing" someone, but somehow I have a pretty good feeling and can well imagine that your financing talks will go exceptionally well. Thumbs up, I think.

You should calculate your tax classes. It’s unclear whether 5/3 is the best option for you. On the topic: yes! that fits. Do not plan for special repayments, but be happy if the repayment period is shorter. What do you mean by "simple" house - make sure it doesn’t get too simple. For 250 T€ you should get a nice house. 65 T€ ancillary construction costs are also very generous – but better that way than otherwise. 1300 € should be sufficient for 3-3.5% repayment with a 15-year fixed interest term with your equity – that is fine.

Congratulations on this transformation with the permanent position.

Respect for the savings potential - few achieve that, the possibilities are usually not like this either...
I join : don't be too stingy with yourselves, treat yourselves to some nice extras in the house, you will benefit from them for a very long time