Land now - house construction next year

Hello everyone,

the home ownership plans of my partner (24) and me (27) are now becoming concrete, and therefore we would like to use the concentrated expertise of this forum.

Our situation is as follows:

- We are both employees and earn a net total of about €3000 together.
- Unfortunately, we have no equity, only attics, furniture, wallpaper, etc. would be paid from savings.
- Currently, we are saving a large amount for a wedding planned for early 2013.

Actually, we wanted to wait another 2-3 years to build the house in order to build up equity, but now we have found the perfect plot of land including a development plan for us (in the north of Essen).
We would now like to secure this and initially buy the plot of land, since reservations are not possible.
Construction is scheduled to begin in late summer 2013.
Is it possible to initially finance the plot of land with flexible interest rates, and then take out a full financing next year?

The total price (detached single-family house Kfw70 with 145 sqm of living space and basement + 500 sqm plot) is about €300,000.

We have calculated the monthly burden of the rate for the land and later the full financing very thoroughly and precisely and integrated it into our life planning to simulate the next few years. We assume a monthly rate of about €1100 for the complete financing, which we could easily afford, while still being able to build up reserves.

The only problem, in our opinion, is the temporal separation of land and full financing. We don’t know how best to proceed here and whether banks will even cooperate.

We would be very happy about tips and an assessment of our plans!

Many thanks and best regards!
Michele

Are you really sure that you can manage with 300,000 euros for the property, basement, and house? How much does the property cost? It can't be 10,000 more.

Best regards

Hello,

yes, I have a complete offer available, with a total cost price of approx. €300,000. Of course, special requests cost extra, but we are already very satisfied with the data contained in the [Bau und Leistungsbeschreibung].

Unfortunately, the separate land price is not evident; this point still needs to be clarified.

Best regards

finance a total of 300,000€ with 3,000€?

bold...

with 1,100 monthly it will become very tight even with 1% repayment... don’t think about the great interest rates from the advertisements.. you won’t get those with a full financing without equity! you can be glad if you stay under 4% with a 10-year fixed interest rate.. and that would already be 1,250/month with a remaining debt of 263,000.. that means if the interest rate is 6% after 10 years you are finished...

regardless, if possible you should not repay with only 1%!
and what about children? then your expenses increase sharply and your income goes down because your girlfriend might only be able to work part-time...

i would think about it VERY carefully again... above all you should consider: if you have an offer for house + land for 300,000 then in the end it will definitely be at least 10-20k€ more!

Hello,

we have obtained an initial rough offer for the financing and came up with a rate of 1100 (even slightly below). It might be worth mentioning here that the interest conditions for a fixed interest period of 20 years (high planning security) are employee conditions that we both receive.

The child planning was also taken into account in the house purchase project (higher living costs and less income). With a rate of about €1100, there would be enough surplus to build a buffer for bridging in the coming years. This topic was really very important to us and we prepared all calculations very pessimistically so as not to fall flat.

In the meantime, I have also learned the price for the plot including development, which amounts to about €90,000.

Best regards

PS: It is a purchase from the developer.

Hello,

The total price (detached single-family house KFW70 with 145 sqm living space and basement + 500 sqm plot) is about €300,000 ... by now I have also learned the price for the plot including development, which amounts to about €90,000.

I hope you handle the review of the developer as carefully as you do the setup of your financing!

145 sqm of pure living space already costs – with simple equipment – on a slab about EUR 200,000 ... and you say that about EUR 210,000 should also include a basement. If it – as you say – comes from the developer, then almost all incidental costs should be included in the total of EUR 210,000; after all, about EUR 35,000. I am sorry, but I can hardly believe that a reputable provider could be behind these figures.

PS: It is a purchase from the developer.

Then you pay 5% real estate transfer tax on the plot and house!

Kind regards