How many square meters are realistic given the following financial situation?

Can you estimate where we would end up? What does "high" mean?

"Proportionate" is what I meant here in the actual sense: in relation to income.

The rough calculation is then quite simple: Let's safely assume a loan of 400,000 EUR, which at an assumed 4% annuity means a monthly burden of 1,333.33 EUR. This means the parental allowance is virtually gone, and you haven't yet paid for electricity/water/internet, property taxes, etc. Do you manage this — temporarily — from the other salary including expenses for the child or children in addition to the current living costs? Without children, I would see it more relaxed, but with children still to come, it becomes doubly tight: first because of the reduced income and then because of the increased expenses.

Because of the Riester pension, I would calculate it thoroughly before canceling. After all, there are subsidies and tax breaks.

Should we slim down the floor plan and go down to 140 sqm and maybe replace the garage with a carport? Or does our financial situation look like we can afford the larger living space? The saved equity at least gives me some security.

The sqm are less decisive than the floor plan and layout. Plan based on your needs and not on a sqm target. Discuss with the architect how you want to live, which routines you love, which should be added, what makes you happy and what you like to do, what you like and what you don’t… She can design the right house for you and you as a future family within the budget framework based on these requirements. Sqm prices are only a guideline, with many currently miscalculating by 15%. Therefore, give the architect a budget range for planning that you can exceed by 15% painlessly.

The financial overview is understandable. Expenses will change in type and amount over the years, as will income. Parental leave is much more important than money; if things get a bit tight, you can manage without suffering. Solutions arise when challenges appear. In risk assessment, risk competence is much more than just an avoidance strategy.

Sorry for the long text, but I hope I was able to answer most of the questions to a large extent!

I don’t usually read such long texts. This one was likeable, pleasantly structured and to the point. Fits.

In 2017, a plot of land + a small house was transferred to me (NRW, 30 minutes from Münster). It has been rented out for 30 years (same tenant). Since the house dates from 1956, renovation is not an option. We have registered own use. The notice period is March 2022

And will the tenant leave voluntarily? Otherwise, is there any other risk to the project – and the direction of current case law does not look helpful either..

Meal time to everyone,

we appreciate your opinions and support for our project and gratefully accept them... You look at it differently than people in our immediate environment.

When we received the first draft with the possible costs, we actually knew that we probably couldn’t manage it that way. We immediately started thinking about where and how to downsize and had also been eyeing about 140sqm. After all, then we would have more of our beautiful garden :)

Then you talk to relatives and friends and suddenly there are many opinions. The first reaction was always: You want to slim down?! 170sqm is not that much! I would try to keep the sqm number! And suddenly you become uncertain and start calculating over and over again. That’s why we are so grateful for your messages right now.

It would be good to know any wishes regarding the house design.

The sqm are less decisive than the floor plan and layout.

Our plot is very narrow. We have a house width of 7m and a living area width of 6m.

There is no development plan. We will have to adapt to the neighborhood. Two-storey with a gable roof, our eaves are at 4.08m, so the roof slope on the upper floor starts at about 1m and then goes steeply upwards so that we still have a bit more space. There will be no bay windows, dormers or extensions. A simple rectangle :)

On the ground floor we have currently planned an office, as we both work a lot from home. This is intended to possibly become a bedroom in old age. We are currently planning the guest WC with a shower, also from the perspective that one can later live on the ground floor. Then there is a utility room and of course the living/dining area.

On the upper floor there will be a bathroom, two children’s rooms and a master bedroom with a walk-in closet. In our current apartment we have a room as a dressing room, which we really like very much.

The attic is to be converted and also serve as storage space.

A garage is currently also planned. Here we would like to have access from the house to the garage.

The connection room is currently still on the ground floor, our idea is to move it to the attic or into the garage. I hope this idea is even feasible.

Therefore, give a budget framework for the planning to the architect that you can exceed by 15% painlessly.

Thanks for the tip! We will definitely take that into account.

I usually don’t read such long texts. This one was likeable, pleasantly structured and to the point. Fits.

That’s kind, thank you!

And does the tenant agree voluntarily? Otherwise it’s also a risk for the project – and the direction of current case law doesn’t look helpful either..

Fortunately there is a good relationship here. Of course he was shocked, he has lived there for a very long time with his family after all. The neighborhood is also very harmonious there and he is fully integrated. Now he is lucky in misfortune and will be our future direct neighbor. The house was also sold and the new owners will design two apartments out of it and he can move in there at the beginning of next year. That suits us very well too. This means that the rental income is definitely still safe this year.

We wish everyone a wonderful weekend with hopefully a few rays of sunshine.

Good morning,

we recently had our appointment at the LBS and received an assessment of the apartment's value.

The market price amounts to 230,000 EUR.
For the sale, the real estate agent would start at 239,000 EUR.

I originally bought it for 170,000 EUR (excluding additional costs).
Including additional costs, I paid 192,315 EUR.

The remaining debt amounts to 144,000 EUR.

My loan payment currently amounts to 600.00 EUR plus additional costs.

We were also told about the price for possible rental income.
Here, too, 600.00 EUR would be due.

What do you think? Sell the apartment? Or keep the apartment and rent it out?

On Monday, we have another appointment at the LBS regarding a possible financing of our construction project. But we will also make an appointment at another bank to see how the possible prepayment penalty looks there.
The fixed interest rate period ends on 01.01.2025.

I am curious about your opinions.
What makes more sense?
Sell or rent out?

If we sell, what additional costs should we expect?
Since this year, the real estate agent fees have been split between both parties.
Therefore, the question is whether it might even be better to prefer a private sale.

Have a nice start to Tuesday.