Loan for new single-family house construction 330 thousand EUR, check scenario?

Hello everyone,

my wife and I are planning the construction of a detached house. We currently have no children but plan for 2. For the calculation, I assumed that we have one child. The house should not be huge; besides 2 children's rooms, we only need one study/guest room. It should not be a luxury, but normal middle class. Full repayment is targeted in 15 years.

Could you please test my scenario?

Situation:
- 1 full-time earner
- 1 part-time (15h, the rest of the time for childcare)
- 1 child

Plot:
- 750 sqm
- quiet location, 2 km to the city center
- purchase price 85,000
- incidental purchase costs 10,000 (broker, taxes, notary, land registry)
- additional construction costs 20,000 (plot is developed, whatever that means)

House:
- 150 sqm, no basement, carport with 2 parking spaces
- 1.5 floors
- purchase price 250,000 (saving potential since I work in the building materials trade)
- kitchen 10,000
- interior painting 10,000
- sanitary 15,000
- flooring 10,000
- outdoor facilities 10,000
- carport 10,000
- reserve 10,000

Income, all net:
- 7,000 per month (including 1 x child benefit)
- 13th salary 5,000
- reserve annual special payment 8,000

Financing:
- equity 110,000
- equity reserve 10,000
- total investment 440,000
- loan 330,000
- interest rate 3.2% (should be feasible)
- repayment 3%, corresponds to 1,700 EUR per month
- special repayment 10,000 EUR per year
- accordingly, I would be done with financing in 15 years.

Plausible?

Regards Lars

Which position does one hold in a building materials trade to earn 7,000 euros net? Managing director? The point sounds implausible.

Hello Toxicmolotow,

Thank you for the feedback. Apart from that, is the scenario plausible?

Regards
Lars

That's exactly the question I asked myself first! No bank will say NO and if you inform yourself or still compare, you will currently find even better interest rate offers!!! As much equity as you bring, that's what the banks want! And you could repay even more per month. Because if I deduct the installment of 1700 from 7000 Euros per month, there are still 5300 Euros per month left to live on. And that will probably be enough!!

Mathematically, the financing calculation seems to be correct.

Hello Saarplatzmafia, OK, let’s assume that the debt service capacity is given. But what about the other parameters? Did I price the house "correctly"? I know, "how much does a car cost?" is an equally bad question. Maybe apart from the actual costs, did I capture the items correctly? Regards Lars