New construction financing single-family house 150 - 160 sqm

Hello House Building Forum,

we have bought a plot of land and are currently calculating to what extent we can implement a construction project. We would be very happy to receive assessments and tips!

General information about you:

[*
Who are you? two adults
[*]How old are you? 28 (m) and 26 (f)
[*]Are there children? no
[*]Are children planned? yes, 2 pcs in the next 3-4 years
[*]What do you do professionally? both employed (industry + public service)
[*]How many hours do you work? currently both full-time. When the children arrive, it is planned that my partner will reduce to part-time


Income and asset situation:


[*]What income do you have (gross/net)? currently the net income together is just under €5,000. When my partner has reduced to part-time and the children are there, it will probably be between €4,700 and €5,000 (marriage still to come)
[*]How much equity do you have? €110,000
[*]How much equity do you want to put into the house project? €90-100k (would keep at least €10k buffer)


Expense situation:
Housing costs:


[*]current "rent": €500 (a house belongs to me and my siblings, so low rent)


Mobility costs:


[*]Car 1: €220 / month
[*]Car 2: €160 / month


Insurance costs:


[*]all current insurances added up (car, disability insurance, liability….) about €250 / month


Living expenses:


[*]estimated with 2 children: about €1,700 / month for food, clothes, eating out


Total income and expenses:


[*]Total income: about €5,000
[*]Total expenses: currently about €2,600
[*]Balance +€2,400 / month


Total income and expenses after parental leave and after my partner switches to part-time:


[*]Total income: about €4,700 - 5,000 (depending on salary development)
[*]Expenses with two children then total: about €3,200
[*]Balance: +€1,500 - 1,800
[LIST]
[*]From this the loan and all other costs for the house must be paid

General information about the property:

[*
How big is the plot? 400 m²
[*]What are its dimensions? approx. 17x23 meters
[*]How high is the standard land value? approx. €140 / sqm
[*]New build, old building (year built), type of house? new build
[*]Garages? not decided yet, if possible a 6x9m precast concrete garage
[*]How big is the house? (living area / usable area): external dimensions will be between min. 10.0m x 10.0m and max 10.5m x 10.5m. two full floors, no basement.
[*]What is the market value of the land and house after completion? I don’t know exactly. In the long term, I see population growth in this small town and the rail connection will be reactivated in about 3-4 years. I estimate the market value at the total costs of about €500k.


Construction or purchase costs:


[*]Land costs including development costs and ancillary acquisition costs: €65,000
[*]Construction or purchase costs (incl. architect, structural engineer): !estimate! €2,500 / sqm living area (approx. 140 sqm living area planned) --> approx. €350k (we don’t know the exact amount yet!)
[*]Additional construction costs (e.g., house connections, soil surveyor, construction power etc.): estimate €30,000
[*]Outdoor facilities/terrace, paths, garden design, fences etc... estimate €50,000 incl. garage, terrace, fences, etc.
[*]Total costs approx. €500,000


Other costs:


[*]Furniture, lamps, decoration: we will mainly plan a new dining table with chairs, otherwise we need hardly any furniture. We would cover this from ongoing salary and not finance it.


Cost summary:


[*]Total costs: approx. €500,000
[*]Deductible equity: €100,000
[*]Financing amount: approx. €400,000


Necessary loan information:


[*]When I calculate everything, a loan of €400,000 is really the upper limit for us. I already have concerns, and I definitely don’t want to go beyond that.
[*]We have already received a first offer:
[LIST]
[*]Bank 1: €280k / 20 years fixed interest / 1.16% effective interest / 2% repayment planned + 5% special repayment option
[*]KFW 153: €120k / 10 years fixed interest / 1.13% effective interest / 3% repayment planned

Questions:

[*]Are the assumed costs of €2,500 / sqm living area realistic? (Northern Bavaria, near Nuremberg, not a metropolitan area)
[*]How do you assess the affordability of the loan with the income situation?
[*]What do you say about the bank's financing offer?

Thanks in advance for your opinions

I don’t understand: What income do you have (gross/net)? Currently, the net income for both of you is just under €5,000. If my partner reduces her hours to part-time and there are children, it will probably be between €4,700 and €5,000. (Marriage is still pending).

It results as follows: - during this period we will probably get married, which will move me into a better tax class and thus leave me with about €500 more net - in addition, there is the child benefit for 2 children amounting to €400. As a result, the net income remains at a similar amount overall, even if my partner reduces to part-time.

Um, so first you will receive only 200 euros in child benefit for a year - even if you have a second child while still in the postpartum period. And in today's times, the loss of income of the woman and the decreasing pension entitlement should be compensated through private financial provision. And no, a house is not financial provision in this sense.

Are you expecting twins right away? o_O At least five words...

I hope for 2 healthy children. Whether it will be twins or two singles is still open :D Child planning is still pending, but will certainly become serious in the next few years

Um, so first you will receive only 200 euros in child benefit per month for a year - even if you have a second child while still in the postpartum period. And nowadays, the woman’s loss of income and the decreasing pension entitlement should be compensated by private financial provision. And no, a house is not financial provision in this sense.

That’s true, if it’s not twins right away, it’s initially 200€ child benefit.
The main question for us is really whether the whole thing is feasible if my partner works part-time. With a loan amount of max 380-400k€ I personally estimate it as "could still work," but with a heavy heart. Anything above that, I don’t see as doable anymore, and the only option left is that she works full-time, at least for a few years. (We would both like to avoid that)
The remark about private provision is good; we will still give it some thought.