Is construction financing manageable?

A few questions still arise: Why are you only calculating 2000 for the land transfer tax, when higher amounts are demanded by the tax office for a developer (combined with the land purchase)? Why do you assume that the craftsmen of a developer (or in the case of a construction company/ general contractor/ main contractor) will buy building materials from your building materials dealer? That is not the case. When the house is built, you will no longer have a buffer for garden landscaping, paving, etc. Because the buffer of 30000 is quickly used up. You also no longer have options to save anything.

My tip: immediately schedule a consultation appointment at the bank and speak to them BEFORE the land is purchased. I do not see (as a layperson) that you will get a construction loan from a reputable bank - with a current income of about 2000 €. That is of course unfortunate when considering the high equity capital. If you do, then nonetheless consider dropping the double garage and the new furniture.

Alternative: consider a used property ;)

So the land purchase is independent of the contractor, meaning that tax is only applied to the land, not the entire purchase. It is clear to me that the craftsman does not buy from us, or only partly does. For the things I want, like maybe tiles, doors, bathroom, cistern, etc., I can tell the contractor "I'll do it myself, I'll get it myself," and I only want the installation from him. For example, I will deduct the front door from the purchase contract and take a very high-quality one from our showroom. I practically have no problem with the installation, and if someone says "Warranty..." well, saving at the wrong end or doing it yourself on the most important things is dangerous, but for "safe" things you can do your own work – if you can.

We have a first appointment for construction financing next Tuesday at our house bank. I will also bring my Excel calculation with me.

I am quite aware that none of it is 100% as I calculated, maybe something is still missing here and there, but basically it is a "start" to have it listed like this ;-)

Yes, a used property is of course an alternative, but first one has to be found. :-D

Good evening everyone.

We were at our house bank today and they promised us to get a loan. The financing advisor also knew very well the builder we want to build with and currently has many customers who are also building with this builder. We were assuming a financing amount of about 140,000 euros, of which we would finance 50,000 through the KfW and the rest - 90,000 euros through our bank. All in all, that would be about 600 euros. Through the advisor, we also learned that we might fit with Bayern LABO and will also make an appointment there in the coming weeks.

That’s it for now, we all wish you a Merry Christmas and happy holidays! See you in the new year 2015!

Regards Martin

I think it is reckless to take out a 140k loan with the salary and the fixed-term employment contract.

There are so many uncertainties that can pull the ground out from under your feet.
Although your equity is really considerable, there remain 140,000 € in debt plus a substantial amount of interest.

How is the repayment?

Repayment is

1. KfW 50,000
171.36 (2.86) euros for 10 years, then new borrowing for 36,000 euros

2. Housing loan 90,000 euros
the first 10 years 315 euros for the building savings contract - 128.25 euros interest for the loan
afterwards the loan is repaid by the building savings contract 450 euros for the building loan until 30.05.2036 with fixed interest

It should simply be taken into account that we already have an apartment now and the "costs" are approximately the same.