New single-family house 140 sqm in South Bavaria - Assessment

Hello dear community,

we are currently at the very beginning of our new construction idea and would like to gather your opinion on our considerations. We have been dealing a lot with the house building topic lately and have come to a rough calculation that we would like to realistically and clearly classify before taking further steps.

There is already a buildable plot of land, so we are getting closer to the idea of leaving Munich city and moving to the Freising hinterland. There is currently no time pressure. However, the current price/interest rate situation is pushing us a little.

About us:

[*]m34 / w34, married
[*]1 child (2), another planned
[*]both engineers, permanently employed with collective agreement, m/38.5h, w/35h

Income and asset situation:

[*]net 6700,-
[*]220,- child benefit, 250,- family allowance
[*]currently equity 80k€, about 80-90% of which goes into the house

Housing costs:

[*]current cold rent: 1500,-
[*]current warm rent + additional costs + electricity/internet/mobile: 1800,-

Mobility costs:

[*]2 cars, paid off, including tax, TÜV, repairs and fuel per month: 360,-

Insurance costs:

[*]all mandatory insurances + occupational disability insurance per month: 200,-

Living costs per month:

[*]total approx. 1000,-
[*]for child: 300,-

Income and expense totals:

[*]Income: 7130,- total
[*]Expenses: 3520,- total
[*]Balance 3610,-

Our project:

[*]Plot (available): 700sqm on a slope (south slope) above the street/driveway, partially developed
[*]Single-family house 140sqm living space with basement (half finished)
[*]1-2 garages

Our cost calculation

[*]Additional construction costs: 80k€
[*]House: 550k€
[*]Outdoor area: 20k€
[*]Garage: 15k€
[*]Photovoltaics: 12k€
[*]Buffer: 70k€

= approx. 750k€

Due to the slope location, we expect significant additional financial effort/secondary construction costs. We want to make use of the slope and build a basement, partly extending the living area towards the slope side (as additional rooms for home office, possibly later expansion into a tenant apartment). We calculate with a price per sqm of 3200,- (correspondingly less for the basement). In self-performance, some rudimentary things and/or outdoor facilities will certainly be possible here and there. However, we do not specifically calculate on this. We place great value on good insulation / efficient heating and want at least photovoltaics on the roof. Subsidies/KFW, etc., are currently not included.

We want to calculate as realistically as possible. Currently our savings rate is still quite high, so equity is still growing. At the latest from the 2nd child, this will certainly change again. Of course, the house is a dream, the idea has been there on both sides for a long time, but still we do not want to have to turn over every euro and put it into the house.

And then the question: Without time pressure - how do you assess the current situation regarding interest rates, construction costs, KfW? Take your time or act quickly?

Looking forward to your opinions and assessments!
Thanks in advance and best regards

Good evening,

so income/loan amount fits.

Current assessments regarding the interest rate situation or reintroducing KfW are difficult to predict.
KfW-40 Plus is still possible, it can be taken as a subsidy option, and then the loan can be set for a 20-year term.

Because of the property (it would be interesting to know what it is worth), the maturity period should also be relaxed, so still reasonable interest rates can be obtained.

Yes, it works, have fun, get started ;)

if not you then who. good luck

Hello,

so it definitely works for you.
A few points will still be too low.

Garage doesn’t work for 15k in the Munich area.

Outdoor facilities 20k is enough for own work on terrace, paths, house entrance, driveway.
However, it is questionable whether you can do all this yourself with by then 2 small children.
Besides, you have an expensive hillside location.
(You have calculated a lot of incidental building costs for that, so maybe it fits overall.)
Also take into account things like an awning or a roof over the house entrance.

We are currently getting offers for photovoltaics and here, too, 12k is not very generously calculated.
Our offers for 7kwp are somewhat above that.
If you want a storage system as well, it definitely won’t be enough.

3200€/sqm also doesn’t seem generous for the Munich outskirts.

Overall, however, you have a 70k buffer in your planning, so that should fit quite well.
But you will see that at the latest when you have concrete offers for your project.

In any case, I see it like the others: If it doesn’t work for you with the existing plot, then no one else could build anymore!

Since I was at the bank just a few weeks ago, I will take the liberty of giving my opinion. The starting situation regarding the property, age, etc. is similar to yours. Our income is lower and our equity is slightly higher. For us, the regional bank, where we simply went directly, had the best interest rate. Better than on the comparison portals, even though we saw a completely different interest rate from the same bank on those portals. I think this is probably due to the high commissions of the comparison portals or financial advisors. Otherwise, I can't explain it.

I don't dare say anything about the costs yet. I have probably calculated too low for us and currently don't trust my calculation myself.