House construction in the suburbs of Munich? What should we invest in?

Good morning

I am always amazed at what people want to take on, can take on, or even have to take on.
Sure, you can live with a loan amount of 600 k€, but whether you want to is another question.
That, of course, also depends on age and the terms.
I find 1,000 k€ already critical, especially since the children are still to come.
With the same income, we planned with 335 k€.
For us, land prices and building opportunities are also not comparable with yours.

Olli

Morning,

I’m always amazed at what people are willing to take on, can take on, or even have to take on. Of course, you can live with a loan amount of €600k, but do you want to? That of course also depends on age and the terms. I find €1,000k already critical, especially since kids are still expected. With the same income, we planned with €335k. For us, land prices and building possibilities are not comparable to yours.

Olli

Well.. I consider €600k with a net income of €8.5k clearly better than €300k with a net of €4k (which is of course still doable). Of course, I would also prefer to have €500k as savings rather than as a loan. And €300k with such a high income can also be "quickly" saved up. €50k a year means 6 years...

Even with the salary, I already find that a real statement... I wouldn't want to calculate more than 2k as a fixed rate (after all, a salary can always drop out) and the rest can still be paid off as an annual special repayment. With a 10k special repayment and 1.4% interest, the OP is still busy for a good 20 years. Without special repayment, a good 30 years... And with higher interest rates, the loan term will exceed the remaining lifetime...

But I wanted to ask something else: 180 sqm with upscale standard should be possible to build for 400 to max 450 k€, given my 500 k€. Otherwise, those really are golden faucets. That means 500-600 k€ for the land?!? For 700 sqm? That’s 800 €/sqm, where do you want to build? In the [englischen Garten]?

Best regards,

Andreas

Even with that salary, I think that's quite a statement... I wouldn't want to calculate more than 2k as a fixed rate (since a salary can always disappear) and the rest can always be paid off as an annual special repayment. With a 10k special repayment and 1.4% interest, the OP is still occupied for a good 20 years. Without special repayments, it's a good 30 years... And with higher interest rates, the loan term will exceed the remaining lifetime...

We pay 1300 EUR for a 500k loan. At the same time, of course, we are saving. The term doesn't matter much to me with the current interest rates... for me, the monthly interest expense counts and the fact that the property is worth significantly more than the outstanding loan. Plus personal liquidity for tough times.

I think this is a pretty good plan.

, no, I meant the OP. With 600k you’d need, at a 1300 installment without special payments, a good 55 years to pay it off. I think it will be difficult to find a bank that agrees to that…

Edit:
Although I just see you also have 500k (I had always read 300). That’s a payment horizon of over 40 years? A bank agrees to that? *astonished*

Yes... fixed at 1.85% for 15 years. 300k equity and income are the decisive factors. We could have also gotten 1% repayment instead of 1.5%.