Is the project realistic? Your assessments

Hello everyone,

We would appreciate your assessments of our project. Is the whole thing realistic? The construction costs are based on two offers – one from a solid builder and one from a prefab house builder – both almost identical down to the euro.

General information about you:

[*]Who are you? Couple [*]How old are you? Both 25 [*]Do you have children? No [*]Are children planned? No [*]What do you do professionally? Engineer in the family business (m), civil servant (m) [*]How many hours do you work? Both full-time

Income and asset situation:

[*]What income do you have? 7,500€ net including rental income (already deducted mod reserve, loss deduction, tax...) [*]How much equity do you have? 70,000 € + land (210,000 €) [*]How much equity do you want to invest in the house project? All

Total income and expenses:

[*]Total income 7,500 € [*]Total expenses 1,700 € (no rent, no utilities) [*]Balance 5,800 €

General information about the property:

[*]How large is the plot? Approx. 1000 m2 [*]What are its dimensions? Approx. 40 m x 25 m – 6% slope [*]New build, old building (year of construction), house type? New build planned [*]Garages? Double garage with one door [*]How large is the house? Approx. 180 m2

Construction or purchase costs:

[*]Land costs 210,000€ (fully developed, already owned) [*]Construction costs 530,000 € (turnkey, including interior finishing, floor coverings, double garage, photovoltaic with 6KW and rudimentary KNX) [*]Incidental building costs 15,000 € (civil engineering – i.e. foundation,... will be done by us – probably cheaper here) [*]Outdoor facilities/terrace, paths, garden design, fences, etc... 30,000 € [*]General incidental costs 40,000€ (soil survey, surveying, land charges, notary, buffer...)

Other costs:

[*]Kitchen 15,000 € [*]Furniture, lamps, decoration 30,000 € [*]Other / buffer 10,000 € [*]Outdoor pool 30,000 €

Cost summary:

[*]Total costs 210,000 € (land) +530,000 € + 170,000€ additional costs = 910,000 € [*]Deductible equity 280,000 € [*]Financing amount 630,000 €

Proposal from our house bank:

[*]Amount: 630,000€ [*]Interest rate 1.05% [*]Fixed interest period 20 years [*]Repayment 3.5% [*]Installment: 2,388 € pM [*]End of fixed interest period: 139,513.95€ remaining debt

Should be comfortably doable.
With the additional costs, miscellaneous and buffer possibly a bit too low.
Don't put all the equity in, otherwise you'll have to think about additional financing for bigger things right away.
Does the hillside allow for a standard design? Basement?

Should be comfortably doable.
For the additional costs, miscellaneous and buffer maybe a bit too low.
Don’t put in all your equity, otherwise you’ll have to think about additional financing for bigger things right away.
Does the slope allow a standard design? Basement?

The 6% slope should not pose a problem for a normal foundation with a concrete slab.
We see no need for a basement and for a split-level design the slope is actually too shallow across the area.
For the civil engineering/earthworks, we will grab one of our excavator operators + truck drivers and transport the material ourselves – after all, there has to be some advantage when your parents own a medium-sized civil engineering company *laugh* In any case, the amount is simply stated here as €15,000..
As for the buffer for miscellaneous... that’s true.. – I just find it hard to put a figure on it here..^^

Hey best condition

I personally would rather go for 15 years and put the difference into repayment. But that is more a matter of belief. You probably don't really need any risk coverage for the outstanding debt.

I personally would rather go for 15 years and put the difference into the repayment. But that's more a matter of belief. You probably don't really need risk protection for the remaining debt.

What interest rate would have to come with 15 years so that it "pays off" for you? Even if you got 0.8 then, the interest threshold after 15 years would be under 3%.