Loan for new construction - feasibility, recommendations

Thank you for the previous responses.

If I now draw a line under it, it probably comes down to the following procedure:

* calmly look for a property within the framework of equity
* obtain some house offers according to our concrete ideas
* obtain corresponding loan offers and set the non-KFW amount to a fixed interest rate for 15-20 years

regarding the floor plan, with an architect or just try to put something together yourself?

regarding the floor plan, with an architect or just try to put something together yourself?

It depends on the property and its characteristics or special features. On a standard new-build plot, a standard floor plan from a general contractor will certainly fit very well. For a sloping site, etc., I would consult an architect who also keeps an eye on the additional costs.

Choose a 15-year fixed rate + assess for you whether with children it is not too tight after all

Hello everyone,

I would like to pick up my topic again and tell you how things have progressed since August 2019.

We were really lucky when it came to searching for land and managed to snag a 570 sqm plot in a very nice new development area nearby from a private seller for just under 75k euros. This was paid for including additional costs with most of the equity.

At the same time, we signed a house construction contract with the company Spektral for a solid townhouse with 150 sqm. Fortunately, it was still before the turn of the year, as the price would have increased by 12%...

For this, we now need to take out financing of 345,000 euros. We had appointments with local banks such as Volksbank, Sparkasse, and with brokers like Interhyp and Heun Finanz (who work with Spektral). In general, I can recommend everyone to make an appointment with brokers like Interhyp. You get a good overview of the market and good conditions.

In the end, we signed the following offer with Heun Finanz:

- M-Hyp | 225,000 euros | 30 years | 1.23%
- KFW 153 | 120,000 euros | 10 years | 0.55% ([18,000 euros repayment grant as KfW55 house])

With these good conditions, we decided on a 30-year fixed interest rate. Now, at least when it comes to interest rate increases, we can sleep well until the debt is paid off. Otherwise, construction will start around autumn.

Thanks again for the responses back then and stay healthy!

Otherwise, construction will start around autumn.

Are you sure? 6 months lead time? But it doesn't matter now, everything is signed anyway. Good luck and let me know how it goes!