How much could we finance?

The older we get, the more expensive our weekly grocery shopping becomes. At some point, you just don’t want to buy ground beef at €3.33 per kilo anymore. Just an example. You should also leave yourself some breathing room after building the house.

Hello Der Da,

The older we get, the more expensive our weekly groceries become. At some point, you just don’t want to buy ground meat at €3.33 per kilo anymore.

I can sign off on that blindly. And be sure, once the kids have moved out, it will get even more expensive

Rhenish greetings

So, quite a lot has happened here again^^ As I said, at the moment we're just thinking about converting the 711 Euro cold load into a 1000 Euro cold load and having our own little house in 25-45 years. What I've filtered out here so far is that it's not reeeally as simple as the friendly financer from the construction company, let's say, made it look. First, some basics: It's not that we have no equity; about 37,000 Euros would be available, but we want to keep that, except for the building savings contract, in case unemployment or other things sabotage the finances. So 32,000 Euro reserve. At the beginning, we mustn't forget the question: we wanted to know which amount one could roughly finance with our income situation. As a result, I would currently take that 270,000 is pretty borderline, rather lower. Due to the correction in the land price, we're at least already at 258,000 Euros, although the mood here would also describe that as borderline. The financing offer from the bank with a rate of 1,361 is too high, I think we all would agree, that would be a full 45% of net, here in the forum I filtered out as a guideline to stay under 40%. Our maximum burden we would dare is 1,000 Euro, so 33%. Furthermore, I take from this so far that the calculation of the house price at 170,000 Euro is very "sporty," meaning the catalog price where no extras are included and absolutely nothing else must be done because every minor change or unforeseen thing costs a maximum. That means for me, we need the complete price as a fixed price, and everything must be in the construction performance description. Since I cannot assess that myself, the contract must, of course, be reviewed by a lawyer beforehand; furthermore, to protect against nasty surprises, we would build only with a building expert. Our weekly shopping is actually quite good at 75 Euro, but I had already calculated 100 for the house calculation for the more expensive ground meat^^ All in all, the project is not completely dead yet, but we now roughly have framework conditions which, of course, we all still have to calculate; for that, we will also take the advice to visit the banks and independent financial calculators and first get concrete offers that also include KfW funding programs and the building savings contract. I will publish the result here again and collect your opinions. All in all, you have already helped us a lot and especially slowed down our enthusiasm at first; building a house is, as said, not quite that easy after all. Many thanks to everyone for that. Best regards, Para

You write in the last post that you want to convert 750€ 'cold burden' into 1000€. However, in the first post you mention something about 500€ cold. So you want to double your rent. And the additional costs are also higher in the owner-occupied house. You will definitely need over 300€ monthly. Thus, you have to relate the current warm rent (about 750€) to the minimum 1300€ for the house. A salary is completely gone here and you haven’t even lived yet. What happens if you lose your job or have children? For me, this is not feasible at that amount...

75 € weekly grocery shopping? For everything? Cleaning supplies, toilet paper, drinks, bread, sausage, cheese, vegetables? We can hardly manage that if I also count what both of us consume at work. People still go out for lunch there, and the child has to eat something at the daycare mom’s. Keyword child: Here you need about 40-60€ monthly for diapers if you use Pampers....

I think you’re just making the whole thing look better for yourself. Just like that, the plot gets cheaper etc... but I can promise you one thing, nothing will ever get cheaper. Even if your builder gives you a fixed-price offer, you have to be sure that everything is included. Keyword earthworks... those ended up costing us 20,000€ more than the house planner had indicated. Where do you get these amounts from?

On the subject of converting the burden: have you ever calculated what a loan of 250,000€ costs you in the end after 40 years? I’ll tell you, about 600-700,000€, after 25 years you will have already paid the bank 200,000€ in interest. In the same time, you would have only paid 150,000€ in current cold rent.

Of course, it’s simplistic calculation, and probably not exactly replicable, but if you build/buy a house, you have to reinvest to maintain the house and to modernize it again and again. And this is exactly where you will fail, even if you can afford the 1% installments. Eventually, you will need a new roof, a new facade paint, a new heating system. That costs money. Eventually, the municipality will present you with a bill of 10,000€ because the street has to be redone or the sewer has to be renovated. A coworker currently has to pay 35€/sqm of land for the municipal road. Bitter, because he has just under 1000sqm of building land. Others in the village currently have to contribute 2,000€ to the sewer system. And “it can’t be done” does not exist here, you own property, and that’s an obligation.

We had a lot of equity and a significantly higher net income, but now, after the child is here, the situation looks bitter at first. My wife doesn’t even earn half of what she used to bring home before, the childcare costs nearly 500-600€ a month. We would never have built if my salary wasn’t enough to pay for everything alone now. Just the amount to insure all of this with risk insurances is a heavy monthly burden. 25€ for risk life insurance and over 100€ for disability pensions. Then you shouldn’t forget... you should also do private retirement provision... a 35-year-old house is a good start, but you can’t live on that for 25 years in retirement. And since our upcoming government is once again dipping into the pension pot, I wouldn’t count on receiving more than 850€ basic pension later.

In the end, you have to know what you’re getting into. But especially when you can rent so cheaply, I would think twice more than once. We had to build because cold rents of 800€ upwards are not uncommon here. The house currently costs us 500€ more than the old rental apartment. (Additional costs, extra fuel consumption, interest)

Hello,

As framework conditions, he further had that we have no equity, that a plot of land of 500 sqm costs 63,000 euros (fully developed) and that the house should be turnkey with about 130 sqm of living space, exterior facilities also finished. Salzkotten, that is near Paderborn. His calculation was as follows:
63,000 euros plot
25,000 euros incidental construction costs
170,000 euros turnkey house construction with exterior facilities (prefabricated house KfW 70)
Total costs 270,000 euros

My questions now are:
1. Is the price for a house and everything around it roughly realistic

Paderborn is not quite as expensive as many parts of NRW. I estimate it will come out roughly like this:

Plot: TEUR 63
Single-family house 130 sqm, KfW 70: TEUR 170
Incidental construction costs: TEUR 35 (without possibly arising additional foundation costs for the plot)
Painting work as EL: TEUR 10
Floor coverings as EL: TEUR 10
Exterior facilities as EL: TEUR 10
Reserve for extras: TEUR 10

Results in a total investment of TEUR 308

By the way, "fully developed" plot only means that the supply lines are accessible in the street in front of the plot. Nothing more, but also nothing less. It is equally certain that a quality prefabricated house is more expensive than a comparably solidly built single-family house.

2. Is financing really as simple as suggested?

I would always recommend that you keep your distance from a provider-dependent financier and instead look around on the open market.

Rhineland regards