How do you finance the million-dollar house? (BW, passive house, 140+50 m2)

Hello dear community,

I am aware that this is not about textbook financing ("max. 30% of income for housing" / "max. 120x the monthly income as monthly loan burden"). We have the problem of living very close to Stuttgart. In our region, there is simply hardly any supply and many buyers with deep pockets. Now I would just like to share a few thoughts about our roughly sketched project with you. We would definitely provide a lot of own contribution, but I want to leave that aside here and let only the bare numbers speak.

General information about you:

[*
My wife 33 years old, me 35 years old
[*]Children 2 years and 4 years


Income and asset situation:


[*]450€ part-time, housewife
[*]4400€ net + 13.5th salary + additional target bonus, employed as an engineer
[*]2x 419€ child benefit
[*]Equity 100,000€, possibly 150,000€
[*]In 4-5 years an additional 100,000€ through a gift
[*]We are willing to invest everything into the house
Mobility costs:
[LIST]
[*]1 car, current value about 13,000€, paid in cash. About 12,000 km annually
[*]19€/month insurance
[*]33€/month taxes
[*]90€/month fuel
[*]50€/month repairs/tires


[*]Housing, insurance, living expenses, savings


[*]1020€ housing (current warm rent including electricity, gas, water, broadcasting fee, garbage, internet and additional payment)
[*]6€/month mobile phone
[*]4€/month liability insurance
[*]7€/month capital or term life insurance
[*]10€/month (provision/pension insurance)
[*]60€/month disability insurance
[*]400€/month groceries including household, clothes
[*]13€/month Netflix + Spotify
[*]250€/month vacation


[*]Other: 300,000€ loan for rented property. After interest, repayment and taxes there is currently a surplus of about 500€/month
[*]Income and expense totals:
5350€ total income


[*]Child benefit not included, used for the children
[*]-1020€ housing expenses (of which 720€ cold rent)
[*]-942€ sum of other expenses
[*]=3388€ balance
[*]+600€ rental of ground floor apartment in new building


[*]General information about the property:


[*]500-700m² - there is no concrete plot.
[*]600€/m²(?) official land value
[*]New build 140m² with ground floor apartment 50m²(?), 10m² technical room, carport
[*]Timber frame or solid – still open, passive standard


[*]Construction or purchase costs:


[*]462,000€ large plot including notary, property transfer tax, etc. (+10%)
[*]488,000€ construction costs house including incidental costs, outdoor facilities, kitchen, furniture, lamps
[*]950,000€ total costs


[*]Cost breakdown:


[*]950,000€ total costs
[*]100,000€ deductible equity
[*]850,000€ financing amount
[*]-75,000€ KFW grant for 2 residential units
[*]=775,000€ to be financed

100,000 – 150,000€ with 5 years. The rest fixed for 20 years. Residual debt 400,000 to 500,000€…
At the beginning of the year, a credit broker offered us a loan amount of 700,000€ with 1.3% interest and 2% repayment for 20 years (2310€/month installment).
Existing properties in our area cost 600,000€ and need complete renovation. We are frugal, ecologically minimalistic inclined.

One option would also be to consciously take out a 20-year financing (1.3%) and repay as little as possible (1%). That would correspond to a cold rent fixed for 20 years of 1485€/month. We would basically rent from the bank. The scenario would be: At the end of the fixed interest period either extend again (refinance) or if the conditions are bad, sell and move out. If property prices have not fallen massively, we would get out of it with a small additional payment of 50 to 100,000€.

[*]Is our wish for the property possible? Are we completely crazy? How do you see the matter?
[*]How far do we get with 488k for the construction of a house including incidental construction costs? Are 200m² of interior space even possible?
[*]What kind of additional costs can we expect with such a house (without allocable shares of the ground floor apartment) (140m²/passive standard)?

Meal time and welcome,

so Passive House standard, with 190sqm living space for €488,000 incl. ancillary construction costs, landscaping, kitchen and and and?

I see that as a big problem.

I just moved into a new build, 170sqm, KfW-55 standard (so not yet Passive House) without photovoltaics etc.
We signed the contract with the developer at the end of 2019 (the contract, so prices are almost 2 years old) and then we had a fixed price at just under €400,000 (with geothermal etc.)
Ancillary construction costs and landscaping still come on top.

So if you want to build with 2 residential units, 190sqm living space, and then as a Passive House, it should already be at €500,000 with the cheapest provider... (ok, timber frame might be slightly cheaper because you can achieve better values faster there)
but the ancillary costs come on top (quickly €30,000-50,000) then landscaping (large plot? longer access paths? terrace etc.?) so prices here can start from €50,000.

And we don’t know what prices will be in 6-12 months, so rather calculate with €600,000.

Further question: how big does the plot have to be?
500sqm, with incidental purchase costs it might be €100,000 cheaper here.

I think if you pack all those wishes in, in the end you’ll rather end up at €1.1-1.3 million total costs.

PS.
I don’t understand why everyone here immediately deducts the repayment subsidy?
So if you need €850,000, then you also finance €850,000 (this amount is checked by the bank, and this sum has to fit the income!)
When it is finished, there is a repayment subsidy = yes, that reduces the liability, but the house must also reach this standard. And you first have to get the €850,000 from the bank.
Often the bank has already experienced that at completion the house did not reach the targeted value, so less or even no subsidy...

So if it’s not shoddy workmanship, you know beforehand whether you meet the KFW conditions and can therefore clearly deduct the funding immediately.

Where else can you find plots "very close to Stuttgart" for 600€/m2? And who builds in this region for <2500€/m2? Incl. incidental construction costs, outdoor facilities, furniture, kitchen... Ultra-naive, both the asset side and the "calculation".

Well, if it’s not just botched construction, you know beforehand whether you meet the KFW requirements and can therefore clearly deduct the funding right away.

Sure, then just advance the money yourself, and after the KfW payment, it comes back ;)

For the bank, only one thing counts:
they want 850,000 EUR paid out, and everything is checked against that...

It’s not called "equity replacement" but "repayment grant."

If it is paid, then the remaining debt is smaller... but not before, since they probably need the money to build the house...

Where can you still find plots "very close to Stuttgart" for €600/m2? And who builds in this region for <€2500/m2?

I agree. Very optimistically calculated. The desire is not frugal and minimalist, especially regarding the size of the plot and the overall construction.