Land Costs - Building and Financing a House

Hello dear forum,

I have been a silent reader from time to time over the past two years, and during this time the topic of homeownership has become more or less interesting. Currently, my wife and I are seriously considering building a small house for us and our daughter.

A brief introduction about us:

I (m, 36 years), permanently employed (100%), net income 2300,-
She (f, 30 years), permanently employed (75%), net income 1300,- + child benefit 184,-
Daughter (2 years) net income 0,-, but net expenses immeasurable ;)

There is currently a side job that brings in 150,-/month. However, I do not want to include that money as it could end at some point.
We both work in nursing, live near Würzburg, and currently have equity of 20,000,-.
We own two cars that are fully paid off and have no other debts.

We have already viewed several plots of land, two of which are shortlisted.
Land cost I: 70,000,- for 564 sqm
Land cost II: 50,000,- for 670 sqm

We want a small house of about 120 sqm. Planned extras: 1 wood stove, carport.
Otherwise, we are rather modest. I know this will probably change during the construction and planning phase and we will have to restrain ourselves now and then ;).

So the question is: do you think it is possible to build under these conditions if we aim for financing of 270,000,-?
We estimate the house at 180,000,- (is that feasible as turnkey?). Then the land 50,000 - 70,000. Incidentals 30,000,-. Carport 10,000,-.
As a monthly rate, we could afford 900,- plus an estimated 300 utilities?

I thank you in advance for any response that brings us closer to our dream or the harsh reality.

Best regards, Daniel

Hm we only have one sole earner (however, no children either), and are not far above your income. However, that is then as family income. We have 100% financing over 210k including renovation loan. It was a used property. We barely managed the incidental purchase costs. After 2 years of saving with a modest salary, there was simply no more equity available, beforehand no income. The whole thing was absolutely no problem at the bank, although we still had a car to finance. Incidentally, our additional costs without heating are just under 100 euros (water, sewage, property tax, building insurance, fire insurance, garbage, chimney sweep). Heating is 2 pallets of briquettes for 500 euros including delivery. Electricity is 40 euros for under 2000 kWh/year (including water heating). The rest we produce ourselves. Two vehicles, one runs electrically also purely with self-produced electricity. Currently, our installment is 500 euros, but the renovation loan (60k) and Kfw home ownership program (50k) are interest-only. We repay the normal construction loan of 99k with an installment of 376 euros at 2% plus currently the maximum special repayment. Planned is a special repayment until the end of the fixed interest period 2017. By the way, the purchase was in 2012, i.e. 5 years fixed interest. That was still 2.5% interest! 270k should easily be possible for you, but I don’t think that’s enough. The estimates you give are all very much on the low side. What about the outdoor facilities? Where are the incidental purchase costs or are they included in the construction incidental costs? Land for 50k is also quite tight, that basically only works in the sticks somewhere JWD. I think in the end a decent amount will be added, that should be calculated in. So rather reckon with 350k and even that seems almost little to me when I read what other people here in the forum spend on quite normal houses. Is a used property out of the question?

I could imagine that the €180,000 for the house may not be sufficient. The plot is more likely the cheaper one, ancillary building costs possibly too low, plus costs for outdoor facilities, floor and wall coverings, ...

Hello,

first of all, thank you for your answers. We now have 2 appointments in May. One at the Sparkasse, one at Interhyp. After that, I will get back to you. I am curious about what will come of it. If you have any further ideas by then, I would of course be very grateful.
So, see you soon and have a nice weekend

Hello forum,

so, after having had two consultation appointments regarding construction financing, we have come a little bit back down to earth.

:
You were already right with your assessment that the €350,000 is more or less the target amount. That’s what the - by the way extremely competent and friendly - advisor from Interhyp also told us.

Regarding the "consultation" at the Sparkasse, you really can’t call it advice in comparison to Interhyp.

We have now come to the conclusion to save up a lot of equity for another 2-3 years and then, with probably also a bit more salary and fewer care costs by then, be able to realize our dream.

We do, however, fear that by then the interest rate level will be higher again, since there have already been increases reported now.

Of course, we continue to be happy about any tips and remain actively represented here.

Thanks for your help and have a nice Pentecost

Daniel

Hello forum,

after I already asked here about a year ago and the answers as well as consultation talks were disappointing, I am taking another attempt today – with a few changed basics:

In the meantime, our household net income amounts to €4100 - €4200. We want to save equity for about one more year to (if it would really be feasible) bring €40,000 equity into the financing.

Our rent still amounts to (warm) €730 + €60 electricity. At the moment, we can save about €1200/month.

Planned is a single-family house with about 120-130 sqm living space, the plot is not yet available but we are thinking of something in the size range between 400 sqm and 500 sqm.

I am basically of the opinion that this should actually be doable. However, my wife has some doubts. Therefore, I would again appreciate answers – whether positive or negative – that are helpful to us in making this decision.

Many thanks in advance!