Is building a semi-detached house sensible despite low equity with a long loan term?

But you still don't stop!!

You neither!

So, fresh from vacation, I am now getting back to your replies. Thank you very much for them!

Regarding kitchen purchase: We have already gone through this odyssey with our current kitchen and had to deal with numerous salespeople until we found a good contact who was the only one transparent with pricing and didn’t try to sell us everything. Although we didn’t invest a fortune in our current kitchen, the contact was very good and always professional. So we are mentally well prepared for that. But we also wanted to check out Ikea once (only wood, no appliances).

Regarding the loan: We would prefer not to take the KFW124. Our original plan was to repay the KfW153 after ten years without follow-up financing. Accordingly, no special repayments until then. But of course, it also depends on how high the follow-up interest rates are in 10 years. Or is that absolutely not sensible? After all, the interest rates on the KfW 124 have also dropped by 0.3% for a 10-year term. I need to calculate that calmly.

For now, we plan 100,000 euros via KfW and 539,000 euros via the bank. We have also received information that the conditions have improved here, but I will only get the new figures tomorrow, then I can say more about it.

So, I recalculated quite a bit again in peace yesterday and we will probably stick with the combination of KFW 153 and annuity loan at the bank. The few percentage points from KFW 124 do sound interesting, but I do not want to have to refinance again after ten years at significantly worse conditions. The remaining debt after that time just feels too heavy in the stomach (after all, that would be about 65K Euro KFW153 + 35k Euro KFW 124 + around 203k Euro bank loan).

Our bank has improved the offer again, so that we currently come to a mixed interest rate of 1.72%. Term as usual is 30 years and 2.1% repayment for the bank loan. After 10 years, the KFW loan can be redeemed (or refinanced on new terms). The offer for a shorter term (20 years) is currently with us from the bank at a mixed interest rate of about 1.5%. The savings compared to the 30-year term would be about 24k Euro. After 20 years, the interest rate threshold would correspondingly be at 2.91%, which in my view is not unlikely in 20 years. If it turns out differently, one can still conclude new/better conditions after 10 years. Then the additional costs for the long term would accordingly be reduced.

: Where does the KFW subsidy come from? Is this a special offer from the proposed bank? And would there be a comparable offer that aims at 30 years and includes exclusively KFW 153 and bank loan?

Small update from our side: We were at the bank today and signed the loan agreement. On Friday, we are going to the notary to distribute a few autographs for the property.

In the end, it became a combination of KFW153 and annuity loan. The mixed interest rate is 1.81% over 30 years with a loan amount of 640k euros (95% loan-to-value). The payment will be around €2,150 (with at least €6,600 net income, additional payments of about €8,000/year). The cushion besides equity is around €65,000.

I know the financing, especially the payment, is certainly not to everyone’s taste. But after several weeks of careful consideration and expense analysis, we decided on this.

The soil survey of the property is already here, but that will be its own thread.

Thank you very much for your input, suggestions, and criticism!

then good luck with the construction.

you have to know & live with everything else

A small update from our side: We went to the bank today and signed the loan agreement. On Friday, we'll be going to the notary to sign a few autograph copies for the property.

In the end, it became a combination of KFW153 and annuity loan. The mixed interest rate is 1.81% over a 30-year term with a loan amount of 640k euros (95% loan-to-value). The monthly payment will be around €2,150 (with at least €6,600 net income, plus special payments of about €8,000/year). The cushion besides equity is around €65,000.

I know the financing, especially the rate, is certainly not to everyone’s taste. But after a few weeks of careful consideration and expense analysis, we decided on this.

The soil report for the property is already in, but that will be a separate thread

Thanks a lot anyway for your input, suggestions, and criticism!

640k loan...WOW. 950 EUR just in interest per month? For that, you must earn at least 1400 EUR gross monthly. Just calculate that over the term. We had 500k with about 600 EUR interest at the start and significantly higher income. I already thought that was a lot. But to each their own..