Is financing for construction projects feasible?

Ok, didn't read properly. ;)

Hello Polarstern,

my wife is currently watching „The taste“ :eek: and I am taking the opportunity to do some calculations for you.

As backbone23 has already written, the classic financing (6% annuity) would conflict with your budget specification. You would need about 1,660 euros per month.
Problematic for you are the low equity as well as the bank’s assessment of your self-employment. I cannot say exactly how matching the interest rates I used are – for you it is going towards 100% financing.

I have tried to stick to your budget specification and also free up a certain period for you to focus on having children. :cool:

I did not consider the small building savings contract. On the one hand, the interest rate of 4.25% is far from good or bad, on the other hand, you might need the credit for the kitchen. If the credit is still available, you can use it to reduce your monthly burden a bit.
In case of dissolving the small building savings contract, the advance payment can flow into the large building savings contract (possibly also the 30 euros per month from the parents). I left this out.
I also did not consider that you still have at least 6 months to "fully save" (= increase the equity) and probably another 6 months to save possibly another small amount.

Although I am not a fan of using a repayment surrogate (here the building savings contract), I consider it an alternative here. However, I had to exceed the specification at the peak by about 70 euros.

Problems of the proposal:

[*]long terms for the KFW loans
[*]no repayment in the first 5 years for KfW
[*]short fixed interest periods (10 years – no longer possible) for the KfW loans and high residual debt
[*]therefore a risk of a significant interest rate increase after 10 years

Advantages of the proposal:

[*]you have 5 years to realize your wish to have children and for your wife to work again
[*]the burden in these 5 years is 1,250 euros.
[*]as long as there are no children yet and your wife is working – use of special repayments (this is a must to reduce the total term)
[*]when your wife returns to work, you can/should continue to use the possibility of special repayments
[*]for the large amount (200,000) you have a secured interest rate over the entire term. In addition, a building savings contract loan always offers the possibility of (complete) special repayments.

This is certainly not an ideal option. Perhaps you will decide on the classic option with a rate of 1,660 euros after all. Then you will be done in about 26 years.

Lastly, a note.
Perhaps you should wait a little longer with the home ownership. On the one hand, you will later know how high the burden from the children is. In addition, your wife will possibly be working again then. You will then have more equity available AND – in a few years, various financings could expire (possibly with higher interest rates), so that then one or the other almost new house could come onto the market.

One would need to know how the building savings loan must be repaid, as it can also be significantly more than 890 €.

One would have to know how the home savings loan has to be repaid, because it can also be quite a bit more than €890.

You are right - I didn't have this information. However, if you extrapolate the €890, you get the following repayment:

890 x 12 = 10,680 : 140,000 * 100 = 7.63% minus 2.80% loan interest = 4.83% repayment

This could (based on the feeling) fit a home savings contract loan. With this repayment, the remaining loan should then be paid off in less than 20 years even without special repayments (I estimate 18 years - I cannot calculate it at the moment).

So, now I also have time to answer the further questions:

1. What is the interest rate on the large building savings contract?

0.5 %

2. Are the ancillary construction costs of your property also including the purchase of the kitchen?

That is already factored in, yes.

3. How high is your wife's additional minor income (I know - it is included in the 2,200)? Only if you want to say - what does she do there (childcare, cleaning, etc.)?

400 € in the online sector

4. Have you already started anything (initiated land purchase, started construction planning, etc.) or how did you come up with your figures ("Land and house (161 m², with KfW70, without basement), currently amounting including painting and flooring work and special equipment, ancillary construction costs, outdoor facilities to 347,000)"? Maybe you have a breakdown of the planned costs, so that, for example, a building expert can check if something is missing.

We are currently interested in a plot of land and are currently only waiting for concrete numbers for the development of the plot, as this has so far been factored in at around 35,000 € (rear plot). Further ancillary construction costs, such as construction water/construction electricity, surveying, building permit, soil replacement (soil report is already available), have already been taken into account. The figures for the house costs are based on a concrete offer from the construction company.

5. Can you get a subsidy from somewhere else (parents, etc.) that increases your equity a bit?

Unfortunately no.

6. Does capital still have to be considered for new purchases of furniture?

No, this is not necessary.

7. Is there also such a nice child salary increase for your wife, as described recently in another thread?

I also receive additional payments if there are children. For the first and second child respectively 95 €, from the third about 290 €. (Compared to what children cost, however, rather negligible)
Daycare would only have to be paid between the ages of 1-3 years, as it is (currently) free afterwards. To what extent we can do without this through home office and possible telework (working from home 1-2 days would possibly be possible for childcare) would have to be checked. However, this should not be a decisive point for the basic affordability.

Regarding the 'large' building savings contract, different repayment rates are possible, but it must be at least 800 €.

Many thanks to you all for the previous answers and suggestions. :)