New Single-Family House Construction - Feasibility Assessment

Is the portfolio value adjusted for taxes?

If savings have been made here for 8 years, a significant part of the 100k euros in the portfolio is certainly subject to taxation.

I would definitely do the civil service degree. There is no better chance. Better to have a little less for a few years but then security afterwards plus very good retirement benefits. And 2500 net is by far not the end. Maybe you can also save something on the private health insurance. Take a look at Huk Coburg, it is cheaper than the all-time favorite Debeka.

Overall, I also think it is quite doable.

That was actually our view of this opportunity as well. The thought remains that with a part-time degree you could maintain the household income of €5600 p.m. and thus get a better loan. In exchange, we see the long-term advantages of becoming a civil servant, i.e. future salary increases, flexibility for family planning, etc.

Is the portfolio value adjusted for taxes?

If savings have been made here for 8 years, a significant part of the €100k in the portfolio is certainly subject to taxation.

The €100k in the portfolio is already adjusted for taxes. Since the savings rates were obviously still very moderate during the dual studies, most of the savings performance was only invested in the last 3-4 years, so not quite as much tax is incurred as would have been the case with a purchase 8 years ago. As of now, the total portfolio is up 30%.

The 100k euros in the portfolio are already tax-adjusted. Since the savings rates during the dual study program were understandably very moderate, the majority of the savings were only invested in the last 3-4 years, so not quite as many taxes are due as would have been the case with a purchase 8 years ago. As of now, the entire portfolio is up 30%.

I don’t understand... Could you please explain that?

I don't understand.. Can you please explain that?

The main point is actually just that the mentioned amount in the portfolio is already tax-adjusted, i.e. the actual portfolio value is slightly higher. Since the majority of my savings contributions have only been made in recent years, the overall performance of the portfolio is not that high either.

Hello everyone,

after a few months I wanted to give an update here. Interesting how much has changed in the planning and financing compared to the original plan.
In the updated data.
We look forward to your comments and assessments.

------------

General information about you:

[*]Who are you? He, 26, She, 25, unmarried,
[*]How old are you? He, 26, She, 25
[*]Are there children? No children
[*]Are children planned? Yes, 2 children in =>4 years
[*]What do you do professionally?
[LIST]
[*]He, employed, engineer
[*]She, office clerk, from summer '22 trainee district inspector (i.e. a dual study program over 3 years, during this time civil servant on revocation in the higher service)

[*]Are you employed, self-employed, retired, housewife, househusband etc...? Currently both employed, from summer '22 she will be a civil servant on revocation
[*]How many hours do you work? Both 40h

Income and asset situation:

[*
What income do you have (gross/net)?
[LIST]
[*]He: 77k annual gross --> 3650€ net p.m. [COLOR=rgb(184, 49, 47)]/ 3750€ net + 450€ side job --> 4100€
[*]She: Currently 38k annual gross --> 2000€ net p.m.
[LIST]
[*]from summer '22: 1300€ net (as trainee) / 1300-1500€ (incl. fuel allowance)
[*]from 2025: ~2400€ net minus ~300€ private health insurance

[*

How much child benefit do you get? -
[*]Other transfer payments such as parental allowance, sickness benefit, etc...? -
[*]How much equity do you have? He: ~170k (large parts of it in stocks), She: ~60k, gifts from parents ~50k --> 280k : Currently: He: 200k equity, of which 110k in securities account and 90k cash + 20,000€ (savings until end of construction), She: 60k, gifts from parents: 50k --> 310k equity (as of now) 330k end of 2023
[*]How much of that equity do you want to invest in the house project? ~min. 200k - Currently: 200k - 220k If all goes well, the 110k ETF portfolio can remain untouched

Expense situation:

Housing costs: ~600€ per month

[*]current cold rent: 400€
[*]current warm rent: 490€
[*]electricity: 35€
[*]gas: -
[*]water, sewage, garbage fees, street cleaning: -
[*]phone, internet, mobile: 35€
[*]broadcasting fee (GEZ): 18€

Mobility costs (for his car): 2790€ p.a. --> 232.50€ p.m.

[*]car loan (or savings rate for new car): 1200€ p.a.
[*]insurance: 300€ p.a.
[*]taxes: 190€ p.a.
[*]fuel: 600€ p.a.
[*]repairs: 500€ p.a.
[*]miscellaneous

Mobility costs (for her car): 4240€ p.a. --> 353€ p.m.

[*]car loan (or savings rate for new car): 2000€ p.a., sufficient reserves for new purchase available
[*]insurance: 350€ p.a.
[*]taxes: 190€ p.a.
[*]fuel: 1200€ p.a.
[*]repairs: 500€ p.a.
[*]miscellaneous

Insurance costs: 200€ p.m.

[*]private health insurance (also supplementary health insurance, sickness benefit etc.): -
[*]liability insurance (including pets): 20€
[*]disability insurance: 130€ p.m. for both
[*]other insurances: 50€

Living expenses: 1270€ p.m. --> We seem to live more frugally and are rather at 800-900€ living expenses

[*]groceries: 500€ p.m.
[*]restaurant expenses: 100€ p.m.
[*]personal care/drugstore: 50€ p.m.
[*]clothing: 150€ p.m.
[*]furniture: 50€ p.m.
[*]vacation: 150€ p.m.
[*]club fees/gym: 120€ p.m.
[*]fun and leisure: 150€

Savings: His savings rate: 2100€ p.m., Her savings rate: 900€ p.m., Her savings rate from summer '22: 200€ p.m. // His savings rate 2700-3000€, her savings rate: 200€

[*]Vacation: already included in living expenses
[*]House
[*]Retirement provision
[*]Hobbies/gifts
[*]Miscellaneous

Other expenses: -

[*]Alimony payments?
[*]Loans?
[*]Miscellaneous?
[*]Was something forgotten? Then please specify here at the latest!

Income and expense totals:

[*]Total income: Currently 5650€, from summer '22: 4850€, from summer '25: 5650€ // 5650€
[*]Total expenses: 2655€ // ~2300-2400€
[*]Balance: Currently: 3000€, from summer '22: 2155€, from summer '25: 3000€ // He: 3000€ per month She: ~200€
[*]of which total cold rent and dispensable savings (e.g. savings rate for house): 400€

General information about the property:

[*]How large is the plot? 600 sqm
[*]What are its dimensions?
[*]What is the land value? 170€/sqm
[*]New build, old building (year built), house type? New build single-family home
[*]Garages? Still open // 6*9m garage adjacent directly to the residential building
[*]How large is the house? (living area / usable area): planned 140 sqm // 168 sqm without basement
[*]What is the market value of the land and house after completion? 700,000€ (?) / 680,000€(?)

Construction or purchase costs:

[*]Land costs: ~120,000€ / 110,000€
[*]Development costs
[*]Additional acquisition costs (notary, court, property transfer tax, broker) all included in land costs
[*]Construction or purchase costs (incl. architect, structural engineer): 420,000€ (3000€ per sqm) + 80,000€ basement /428,000€ (some additions were added) - no basement
[*]Renovation and/or refurbishment costs
[*]Additional construction costs (e.g. house connections, soil expert, construction power etc.): 45,000€ / current calculation: 50,000€
[*]Garage: 30,000€ / 40,000€
[*]Outdoor facilities/terrace, paths, garden design, fences etc.: 25,000€ (will be done after construction completion)
[*]Financing costs (e.g. fees or commitment interest)
[*]Total costs: ~730,000€ / 650,000€

Other costs:

[*]Kitchen costs: 20,000

Cost summary:

[*]Total costs: 750,000€ / 645,000€ (excluding outdoor facilities worth 25,000€, these will be financed from ongoing assets after construction, mostly own work)
[*]Deductible equity: 200,000€ - 250,000€ / 220,000€
[*]Financing amount: 500,000€ - 550,000€ (depending on equity contribution) / 420,000€

Necessary loan details: (initial estimate from house bank, no official offer)

[*]Loan amount: 500,000€ /420,000€
[*]Loan type: annuity loan
[*]Interest rate: 1.7% / 2.1%
[*]Fixed interest period: 15 years
[*]Remaining debt at end of fixed interest period: 243,915€ / approx. 230,000€
[*]Fictitious total term until full repayment: 26 years
[*]Initial repayment rate: 3% / 2.5%
[*]Monthly installment: 1950€ p.m. /1620€ p.m.

2.1% for a 15-year term? Where? With whom? Did I miss something essential? Does a 2/3 loan-to-value ratio make that much of a difference?