House construction still realistic despite rising interest rates / construction costs?

I find your cost planning refreshingly realistic. Your household net income should comfortably cover the installment of 1650. The initial repayment rate is not ideal, but over the years there will probably be salary increases for both of you. I find the incidental construction costs a bit tight at 4k. But it depends on what is included in your fixed-price contract / what you pay yourselves and what not. Development costs of 17500 can be accurate, but can also be higher, depending on soil conditions / slope or similar. Have you already taken into account your materials for the self-performed work in the 490k purchase price? For example floor coverings, walls, paving stones, etc.?

Hey, thanks for your feedback. We don’t have a fixed-price contract yet. Development costs are set by the city, but according to your statements about an "assignment agreement regarding a development contribution," I could imagine that we might have completely forgotten a cost item there :(. However, about €13,500 is included in cost group 390 for: 391 site setup 392 scaffolding 394 demolition measures 395 repairs 396 material disposal 397 additional measures 398 provisional construction work 399 miscellaneous for cost group 390. As you can see, it’s extremely difficult for us to clearly distinguish who talks about which costs when and where. But that is probably an open to-do for acquiring knowledge that we urgently need to complete. I have attached the (according to the architect, due to the current situation, not very conclusive) cost estimate for cost groups 100-400. We will probably need to open a topic for construction cost planning in the corresponding area and discuss it separately there.

Income/expenses match

Construction costs: the others could probably help you better with that

with longer fixed interest period/halfway reasonable repayment (at least 2%) you should rather expect a rate of around €1800 here.

since you are still planning to have children, a fixed interest period of 20-25 years would actually be recommended here + flexibility in repayment (rate adjustment) is important so that if there is only one income + parental leave you can pay a bit less to the bank, and when things improve, then gladly more

Hello everyone,

Personally, I think you are already very far along and assess the situation realistically. You also have a good income (also considering your professional experience). I see no obstacle. You have a current balance of 3.5k – even with the desire to have children and a temporarily lost second income, this should not be a problem. Your set upper limit of 1500€/month is your limit, which you can adjust yourself if you want. It is doable.

What I wonder is: where will you live, and at what cost, once your [ETW] is sold?

I read Kfw 40+ and district heating. That is basically a contradiction in itself. District heating is currently heavily criticized for costs because the prices are influenced by the gas price (although usually unrelated in content). Especially with photovoltaics and storage, you could make yourself independent and then are forced to enter into this dependency.

That’s my two cents.

Good luck.

Hello everyone,

I personally think you are already very far along and assess the situation realistically.
You also have a good income (also considering your professional experience). I see no obstacle. You have a current balance of 3.5k – even with the desire to have children and a temporarily lost second income, that shouldn’t be a problem. Your set upper limit of 1500€/month is your limit, which you can adjust yourself if you want. It is doable.

What I wonder: where do you live, and at what cost, once your condominium is sold?

I read KfW 40+ and district heating. That is actually a contradiction in terms. District heating is currently under massive cost criticism because prices are influenced by the gas price (although usually conceptually independent of it). Especially with photovoltaics and storage, you could make yourself independent, and then you are forced to go into this dependency.

That’s my two cents.

Good luck.

Hey Neo, thanks for your assessment. Regarding your comments:

We have used our market position in the current seller’s market and secured rent-free living in our sold apartment until 08/31/2023 in addition to the sale price. After that, normal rent will be due.

The nonsensical requirement to demand KFW40+ AND obligatory district heating for the property allocation has also already left a bad taste for us. Unfortunately, according to the purchase contract and land register entry, we are not even allowed to install other hot water or heat-providing systems. But since we have already been looking for a suitable and affordable plot of land for several years, we are swallowing this bitter pill consciously.

As it looks and Allianz grants us the loan we applied for, we will probably take the risk despite the current uncertainties. Just for fun: Our cheap desired clinker brick has a 26-week delivery time. Looks like I might be a renter again in my life after all.

Hey Neo, thanks for your assessment. Regarding your comments:

We have used our market position in the current seller’s market and secured rent-free living in our sold apartment until 31.08.2023 in addition to the selling price. After that, normal rent will be due.

The senselessness of demanding KFW40+ AND district heating obligation for the land allocation has also already annoyed us. Unfortunately, according to the purchase contract and land register entry, we are not even allowed to install other hot water or heat-generating systems. But since we have been looking for a suitable and affordable plot for several years, we consciously swallow this bitter pill.

As it looks and as Allianz has approved the loan we applied for, we will probably take the risk despite the current uncertainties. Just for fun: Our cheap desired clinker has a 26-week delivery time. I guess I’ll still end up renting in my life.

Two questions: Which clinker did you want? :) And we are also still selling our condominium. Have you regulated notarized how high the rent might be then and if you fall into a rental agreement, do you still move out broom-clean without repainting etc? Because we absolutely want to prevent that since we have 5m high ceilings and that can’t just be quickly plastered.

Sorry, that was three questions.

Have you arranged notarized how high the rent will be if applicable and if you end up in the tenancy, will you still move out broom-clean without painting again, etc?
We absolutely want to prevent that because we have 5-meter-high ceilings and you can’t just quickly build there.

That’s exactly how you can and should arrange it. But don’t make a tenancy out of it in the notary contract; instead pay a usage compensation (then the rules of a tenancy agreement don’t apply to you). Handover broom-clean is also appropriate – as a new tenant or owner you want to realize your own ideas anyway.

P.S. Did it like this twice in the last 10 years.