Is financing feasible this way? Are the fixed costs okay or too high?

We (she 28 & he 34, not married and childless) are both civil servant teachers and want to build a house. Income: He: €2800, she: €2650. Both increasing annually by 2-2.5% + moving up to the next pay grade every 2-3 years. Currently, €700 private health insurance has to be paid from this. Currently, all fixed costs (rent/electricity/gas/additional costs/cars/hobbies/insurances/a BAföG savings rate of €620, which will be discontinued this summer/etc.) amount to €3500. Approximately €1300 remain for fuel, groceries, and living expenses. A household budget was kept for 1 year. Since we have only been in the profession for 2.5 years, no equity has been accumulated so far. Only the notary fees and property transfer tax can be covered by us. We have a plot commitment for 574 sqm at €71,750. The house with all costs (including kitchen, carport, and outdoor facilities) amounts to €328,250, so we come to exactly €400,000 that we need to borrow. Currently, we have a financing offer over 30 years with two KfW loans as well as an owner's loan and an annuity loan secured via a building savings contract. KfW is fixed for 20 years, the owner's loan is paid off after 15 years, and the other is fixed for the 30 years. We now come to a rate of €1633. Do you think this is feasible? The building land is inexpensive, the interest rates are low, our rent at €1116 is very high. Construction costs will not get cheaper in the future. Therefore, we would like to invest in ownership. Saving a good amount of equity would take too long, and my boyfriend is already in his mid-30s. We have been calculating for a year, 2 banks have stamped the construct as feasible, we just have to decide...

Hello,

you have a combined €4,750 net adjusted for health insurance. How much equity have you saved in the last 2.5 years from that?

I find the construction costs too low in relation to ancillary building costs etc. Whether the €400k for ALL IN is realistic I tend to doubt....

Otherwise, purely based on the figures presented, it should work. The only thing is when children come into play. Higher health insurance, less salary, which puts pressure on the installment.

Of this, €10,000 were saved once for the first BAföG and until June 2017 for the second. That is why I wrote that the €620 savings contribution for BAföG will no longer apply in the summer.
House costs: €246,000 move-in ready
Land: €71,750
Additional construction costs: €30,000 (connections, GSA, authorities)
Sampling: €7,000
Outdoor facilities: €22,000
Carport: €10,000
Kitchen: €13,000
All approximate values.

A soil survey is already included.

Two questions arise for me. We are both teachers as well and in a similar situation:

1. How are you insured with PKV? 700€ is really a lot! We are both also in PKV, paying just over 500€ together and also have a single room, chief physician treatment, etc.
2. Why are you saving the BAföG loans? If you both have 10,000 debt, there is no savings with full repayment (at least that was the case with my wife). Since BAföG is interest-free, it is much more sensible to simply pay it off, especially since BAföG does not appear in the Schufa.

Hello Johanna, and welcome to the house building forum,

Currently, all fixed costs (rent/electricity/gas/additional costs/cars/hobbies/insurances/a BAföG savings rate of €620, which will drop this summer/ etc.) amount to €3500.

I find the fixed costs quite high. Have you ever calculated your living costs differently, meaning including living expenses, hobbies, and fuel in the fixed costs, rent out, so that you can see how much is available for repayment? And then also exclude BAföG straight away, because at the earliest you can only start at the end of the year anyway.

We have a plot commitment for 574 sqm for €71750. The house with all costs (including kitchen, carport, and outdoor facilities) amounts to €328,250, so that we come to a neat €40,000

I actually wanted to complain about the polished calculation (neat sum of €400,000), but I can already see...

House costs: €246,000 move-in ready

What does move-in ready mean? Who is supposed to be the house-building company?

Sampling: €7,000

I find this absolutely too little. If we assume an average construction specification, the electrical item alone in the lower standard already consumes half to reach a normal standard.

May I ask where you want to build?