Hyponex
2019-07-17 15:49:50
- #1
Hello,
after a long time of silently reading along, I now have a few questions for you.
We, my wife and I, both 30 years old, are now dealing more intensively with our planned construction project.
Without going into detail about the construction itself, we are facing the big question of whether we can actually afford our wishes and ideas.
We would be happy about your assessments and comments.
About the situation:
Building plot available, acquired from equity capital. Value according to the standard land value = €270,000.
Additional equity capital approx. €110,000, which can/should be used directly for the construction project. Furthermore, approx. €50,000 in reserve, which actually should not be used for the construction.
Net income approx. €7,000 per month, whereby we only want to plan with €6,000 per month for the construction project, as one or two children are planned in the near future.
Average monthly household expenses over the last 20 months are approx. €2,400, whereby we live quite cheaply (rent + additional costs only €550 per month).
No major purchases outside of the house construction are planned in the near future.
Now to the costs of the house construction according to initial offers:
House turnkey including floors, walls, ceilings, etc. €530,000.
(Hopefully) All other costs that arise in order to actually finish the house, such as earthworks, outdoor facilities, furniture, etc. approx. €80,000.
Thus, a loan of approx. €500,000 is required.
Some time ago, there was a non-binding appointment with a credit broker. Here, they informed us of a credit limit of up to €800,000.
But that would be clearly too much for us.
We could imagine paying a monthly rate of €2,000 for the loan.
Without really concrete questions for you, I would appreciate your assessment of the situation.
If you need further information, I will gladly provide it.
Regards Wesergold
Conditions excellent!
So if you get the house with incidental construction costs/outdoor facilities for €600,000, plus the plot as equity capital.
Set a little aside for the kitchen/furnishing.
Then you are almost at a 1A financing, i.e. the best conditions with most banks.
Be careful with the standard land value. Because if the plot is e.g. 1000 sqm and you have a standard land value of €270 per sqm, then don’t just calculate like that.
Just look at what is indicated on the standard land value map, usually it says: in the development plan 500-700 sqm, i.e. then you are only allowed to calculate with €270 up to 700 sqm, the rest is garden area, which is often valued at 10%-25% by banks. So it could be less.
And yes, I personally like to calculate that the loan amount should not exceed 100 times the monthly net income!
€6,000 = max. €600,000
If you stay below that, it’s more likely to work with the banks.