Is financing possible with ING?

So, before I indulge in the pleasure of answering your questions, I have transferred the cost breakdown from my husband's table. The item ancillary building costs has been calculated more generously; the friends who built there managed with 20K, we put more into the planning.

Land price: €162,000
House construction price: €237,000
Interior finishing: €43,500
- Wall tiles 100m2 at €30 = €3,000
- Floor tiles/floor coverings (most rooms on the ground floor will be tiled) = 160m2 at €30 = €5,000
- Painting work €1,000
- Sockets / data sockets - €6,000
- Kitchen - €15,000
- Sanitary fixtures - €8,000
- Stairs: €5,000
*Everything including labor/assembly/EL
Ancillary building costs: €31,000
- Surveying €3,000
- Building inspection (included in the construction specifications, but still): €600
- Building permit €1,200
- Orchard meadow - €3,000
- Road closure - €1,000
- Earth removal - €2,450
- Development - €7,000
- Rainwater cistern - €3,000
- Construction road - €1,000
- Soil improvement - €8,000
- Safety measures: €1,000

Outdoor facilities:

- Fence: €5,000
Other items remain open for now, to be done by ourselves later.

Total costs from the loan amount €499,000 €478,000

——————-
Purchase incidental costs from equity: €13,800

So please, where have we overlooked items that will still cost us €48,000?!

Surely, the more buffer the better. Furniture etc. comes from savings. Outdoor facilities are also an issue. But among none of our acquaintances/friends are houses perfectly furnished from day 1. Everything comes gradually, yes, initially the move is made with existing furniture and the garden is finished peau à peau, but where on earth have we forgotten services for €48,000?!

As a layperson, you simply underestimate the costs enormously. At first, 50,000 euros sounds like a lot, but eventually, it feels like the money is slipping through your fingers...

Here 1,000 euros, there 1,000 euros... doesn’t sound like much, and suddenly 20,000 euros are gone.

Own contribution: you can easily overestimate yourself here as well... Corona actually played into our hands. At some point, we just didn’t feel like dealing with the construction site anymore, but going on vacation wasn’t an option. Social contacts —— hardly possible... so back to the construction site again.
And there will come a time when you feel burned out.

At the time, I planned the financing very generously for myself, read up on the internet, and always assumed the highest prices.
For own contributions, for example, I assumed official craftsman prices (because what if I can’t do it myself after all?) and factored that into my calculation.
An example: I assumed the surveying would cost 3,000 euros. But I knew a buddy wanted to do it. Can I be sure he would actually do it? In my case, he did, and I paid him with a crate of beer.

In the end, I added another 5,000 euros buffer. We only had one plot of land as equity. Nothing else to “work with” at the time of financing.

However, I deliberately left the outdoor facilities aside because we have good connections there and will hardly have material costs... but it’s good to know that the house is completely finished and that there is still a (though low) five-figure amount sitting in the construction account, which can then be used for special repayment if necessary...

Always assume the worst-case scenario.... that pays off when building...

Don't forget the extras when doing painting and tiling work... that happened to me too. Tile adhesive, trowels, etc. also cost quite a bit... with 30€/sqm you quickly only have tiles for 15€. I calculated 50€ and that was almost too tight. painting: we have 115 sqm of living space and spent almost 1400 euros painting the walls...

You wrote something about your now serious saving – something like you 700 and he 300-500? So you manage ~1300€ and just under 1/3 without the self-employment. How long has that existed? And is it feasible alongside the job & house construction? You work part-time before the child. Public sector? Is your idea of increasing to full-time even doable?

>> Loans: Man 280€ / monthly - car loan, however consumer loan taken out Remaining debt: 15K€ (still 3-4 years term) With 3-4 years and 280€ monthly, of course there remains something in the four-digit range again to reach 15,000€.

Otherwise, you have on paper 4500€ per month for the bank and no equity. Question to the bankers – does the bank count the 13th salary from the past or is it discarded like with the government & parental allowance? The loan limit will be somewhere around 100x to 110x your income if you look at the reference values from the past. But banks have been tightening their requirements for some time. So it’s going to get pretty tight. Interest conditions probably not that good either.

I rather see having a child, buying land & really saving. If prices keep running, it’s game over anyway..

nice

You wrote something about your now serious saving – something like you 700 and he 300-500? So you manage ~1300€ and just under 1/3 without the self-employment. How long has that existed? And is it feasible alongside the job & house construction? You work part-time before the child. Public sector? Is your idea of increasing to full-time even doable?

>> Loans: Man 280€ / monthly - car loan, however consumer loan taken out Remaining debt: 15K€ (still 3-4 years term) With 3-4 years and 280€ monthly, of course there remains something in the four-digit range again to reach 15,000€.

Otherwise, you have on paper 4500€ per month for the bank and no equity. Question to the bankers – does the bank count the 13th salary from the past or is it discarded like with the government & parental allowance? The loan limit will be somewhere around 100x to 110x your income if you look at the reference values from the past. But banks have been tightening their requirements for some time. So it’s going to get pretty tight. Interest conditions probably not that good either.

I rather see having a child, buying land & really saving. If prices keep running, it’s game over anyway..

1) Why should the bank not count contractually agreed 13th salary that has already been paid out for over 12 years?! I am not aware of that. So we already stand at about 4700€. 2) Equity is not 0, but 20K. Please don’t provide false statements. 3) No, I do not work in the public sector. Working more is always possible, just wasn’t the goal and will remain part-time for now. But the potential opportunity is there. The self-employment still exists with me as well, just somewhat scaled down now. 4) The man has been self-employed for over 15 years. But since he works full-time, he keeps it on a low flame. As said, income +/- 500€ monthly (values from 2019, 2020 will be more because of more time due to travel cancellations). How the chances stand is ultimately decided by the bank.

I’m keeping my fingers crossed for you, but I also believe that it will be way too tight. For example: We are building in Brandenburg and for us alone the sewer connection cost nearly 8000 (on a developed plot). Definitely have a plan B ready (e.g. a financial boost from your parents), because living on the construction site with a baby would be pretty miserable for everyone involved.

Am I correct in assuming that you are self-employed and therefore indicated part-time (due to underutilization)?

Is this actually a tied sale? So is the property tied to the developer, here the company Ewa Hausbau?

If that is the case, then property transfer taxes apply to house and land. The bankers here can explain it better.

Thanks, we're not so stupid as not to know what property transfer tax is, and no, that would be a completely different story with generally more expensive purchase incidental costs. The plot is not tied to a developer.

I also don't understand the thing about self-employment and part-time? I am permanently employed part-time. The self-employed secondary activity has been running alongside my main job for two years.