House construction planning and construction financing 2018

And since March of this year (due to the so-called "residential real estate credit directive"), banks have had to carry out the income/expense calculation relatively strictly – worst-case scenarios are also played through.

On the other hand, there are about 40 years left until retirement age here, which is seen positively again in the calculation. And to be honest, that is about 10 years more than most people have.

You are absolutely right, Robson. For me, the calculation of the Wohnimmobilienkreditrichtlinie was also less about the retirement age - for these customers, that is still quite a long way off. More important in this constellation (young, no children yet, but desire to have children) would be the phase after having children, precisely with the questions outlined above.

Hello everyone,

that was quick with the answers, thanks to everyone!

What are your plans once one or two children arrive? Will your wife continue to work (part-time)? Or will you cut back and your wife work full-time? Length of parental leave? Amount of parental allowance?

And what about the planned income development of the primary earner? Are increases from the €1,700 net upwards firmly planned (e.g. through collectively agreed increases with higher age)?

You have to be aware that even with your certainly good equity, a substantial rate will still have to be paid. And since March this year, banks have had to apply the income/expenditure calculation relatively strictly (due to the so-called "residential real estate credit directive") – worst-case scenarios are also played through. If then only one of you keeps the full €1,700 income and the other partner only a part-time salary, it could get tight with one or two children in the bank’s household calculation (and possibly also in reality).

Of course, it is always difficult to have the "master plan" because you never know how things will really turn out. But we "hope" that we will have the first child in 2019 and then possibly the second in 2021. My wife definitely wants to work part-time again.

My income will then be the main income, I am bound by the IG Metall tariffs, so it is "relatively" plannable upwards.

We are most concerned about the high rate that still needs to be paid. So thanks also for your food for thought! Maybe it should be added that we live in the deepest Upper Palatinate; €1,700 doesn’t really sound like much, but life here is relatively inexpensive.

That sounds pretty good: how much is the plot worth?
The plot is equity, I wouldn’t stretch the savings account to the limit, plus kitchen, lamps etc. also still need to be paid for.
I would, in your place, consult a financial advisor to explore the limits.

Regards

The plot is worth ~€32,000.

The limiting factor will still be the household budget.
Parental allowance will be around €1000, child benefit will also be added.
This leaves a net amount of €2900.
Banks calculate a household flat rate of about €1500.
Additional costs for the house are about €350 / month.
This leaves about €1000 for the installment during parental leave, but you will not fully use this.

Let's assume actual construction costs (including additional costs) of €350,000.
Equity = €100,000 + land value (I assume €50,000 for this example calculation).
Total volume = €400,000, financing requirement €250,000.
This results in a monthly installment of €753 with an interest rate fixed for 20 years and an effective annual interest rate of 1.53%.
Remaining debt after 20 years at a manageable €133,000.

It will be interesting to see how things continue after the parental allowance period. If your wife then goes to work part-time and, for example, only earns €850, this is still financially feasible, but there is not much room for maneuver.