basti009
2020-09-21 08:55:19
- #1
Hello,
I would like to briefly describe my situation and then explain the thought process we are currently following:
2014: House purchase €183,000 (old building from the 70s) in Bad Honnef (20km from Bonn, hillside location 1km from A3 motorway entrance), with €23,000 equity.
We invested €50,000 in renovations - bathrooms new, kitchen new, laminate flooring, newly wallpapered. The garden was redone this year - for €22,000 with fence, water feature, etc.
The property has 112 sqm living space with cellar, garage and 290 sqm land. The windows and heating system are from 2007.
We basically feel very comfortable - however, we now have one child, want a second, and may need an office due to more possible home office work in public service in the future.
The standard land value 2020 is €200, at purchase it was still €100.
Estimated resale price: €220,000-260,000?
The €160,000 loan taken out will be paid off by 2023.
Then we will both be 35 years old.
Income:
He: €2,750 net - civil servant with increasing salary in about 2 years
She: parental allowance €1,600, divided by 2 years parental leave: €800 effective.
After parental leave about €1,000 net at 20 hours/week.
Child benefit: €210
Current total: about €3,000 net including child benefit, plus parental allowance €800, trend towards €3,400 in the next 5 years plus part-time wife €4,400 net.
And now comes the exciting question:
Basically, I think that if we keep the house, we can look to the future very relaxed - paid-off house, the most important renovations except the roof - around €25,000 have been done, thus rent-free living, so a lot of money remains for future vacations, enjoyment, etc.
On the other hand: Could we afford much more?
With two children it could get tight - 4 rooms.
On the other hand, we have done everything as we want it - the renovation.
Therefore the question: what is possible for us if we do want to build. In our region, even existing properties start beyond €300,000 (rural) and these mostly require renovation.
Let's play through the possibility of a new build:
Sale existing property: €240,000.
Equity thus €240,000.
Cash: approx. €20,000, no debts.
New plot: €100,000 - 600 sqm.
New house: 130 sqm plus garage and garden €300,000 realistic? Total cost €400,000.
What would really be realistic in house size in 2-3 years and with what monthly financial burden would we have to reckon?
The house should be solid, but does not have to have any special frills right now. We would still like to go on vacation and live financially without major worries.
Thanks for your input!
I would like to briefly describe my situation and then explain the thought process we are currently following:
2014: House purchase €183,000 (old building from the 70s) in Bad Honnef (20km from Bonn, hillside location 1km from A3 motorway entrance), with €23,000 equity.
We invested €50,000 in renovations - bathrooms new, kitchen new, laminate flooring, newly wallpapered. The garden was redone this year - for €22,000 with fence, water feature, etc.
The property has 112 sqm living space with cellar, garage and 290 sqm land. The windows and heating system are from 2007.
We basically feel very comfortable - however, we now have one child, want a second, and may need an office due to more possible home office work in public service in the future.
The standard land value 2020 is €200, at purchase it was still €100.
Estimated resale price: €220,000-260,000?
The €160,000 loan taken out will be paid off by 2023.
Then we will both be 35 years old.
Income:
He: €2,750 net - civil servant with increasing salary in about 2 years
She: parental allowance €1,600, divided by 2 years parental leave: €800 effective.
After parental leave about €1,000 net at 20 hours/week.
Child benefit: €210
Current total: about €3,000 net including child benefit, plus parental allowance €800, trend towards €3,400 in the next 5 years plus part-time wife €4,400 net.
And now comes the exciting question:
Basically, I think that if we keep the house, we can look to the future very relaxed - paid-off house, the most important renovations except the roof - around €25,000 have been done, thus rent-free living, so a lot of money remains for future vacations, enjoyment, etc.
On the other hand: Could we afford much more?
With two children it could get tight - 4 rooms.
On the other hand, we have done everything as we want it - the renovation.
Therefore the question: what is possible for us if we do want to build. In our region, even existing properties start beyond €300,000 (rural) and these mostly require renovation.
Let's play through the possibility of a new build:
Sale existing property: €240,000.
Equity thus €240,000.
Cash: approx. €20,000, no debts.
New plot: €100,000 - 600 sqm.
New house: 130 sqm plus garage and garden €300,000 realistic? Total cost €400,000.
What would really be realistic in house size in 2-3 years and with what monthly financial burden would we have to reckon?
The house should be solid, but does not have to have any special frills right now. We would still like to go on vacation and live financially without major worries.
Thanks for your input!