Hello everyone,
we are new here and plan to build a single-family house without a basement. We were thinking of about 150 square meters of living space + double garage.
We would take care of the heating, sanitary installations, electricity, interior finishing, exterior work as well as all locksmith work ourselves or together with my father-in-law.
Now to the finances:
We already have a building plot worth including incidental costs €68,000, size 730 square meters, other equity still €50,000
Combined income €2,800.
We were thinking of a financing amount of max. €200,000.
No further loans are planned for now.
Regards
Hello,
generally speaking, it doesn’t look bad to start with.
To answer your question, it would be good if you could write how many people belong to the household.
For example, 2 adults + 1 child (without, as written, any further desire to have children) would be feasible from my point of view.
With, for example, 2 adults + 5 children, hardly.
Regarding the planned house price, I am a bit unsure if the €200,000 will be enough. However, a lot of the interior work is supposed to be done by yourselves. I can hardly estimate the savings here. But you should be careful not to overextend yourselves. As it reads, the listed work is supposed to be done by 3 people – all presumably in limited free time and on weekends.
Also – how old is your father-in-law? When I think of my father – there is a significant difference between what he feels capable of at his age and what would probably be healthy for him. You don’t want the house to be finished but the father/father-in-law no longer around.
Regarding the finances:
Plan about 10% incidental costs again.
That is, house + incidental costs amount to €220,000.
You also should not spend all of the €50,000 equity. A buffer is always sensible. Therefore, I calculate with €30,000.
You would therefore have to finance about €190,000.
Due to the plot (€68,000), the used equity (€30,000), and the still to be estimated own work, you could possibly manage a 60% financing. @toxicmolotow can probably judge this better. With a 60% financing, you usually get a better interest rate.
In general, I recommend calculating with an annuity of 6%. This means you would be done repaying in about 25 years.
Question – how old are you and how much time until retirement do you have?
6% on €190,000 financing = €11,400 p.a. = €950 p.m.
Now you should check the following:
How much cold rent do you currently pay?
Are there any other loans?
How high is your monthly savings rate?
At 150 sqm x approximately €2.50/sqm house incidental costs, you have to expect about €375 p.m. for house incidental costs. How high is your current incidental cost (rent) surcharge?
Is the following sufficient to cover the €950 p.m.?
Cold rent
+ monthly savings
- monthly buffer for “unforeseen”
- difference between future incidental costs and current rent incidental costs
If you still have other loans running, they are already taken into account in the above calculation. However, they might give you the chance to increase repayment after paying them off. But always remember: caution is the mother of the porcelain box.