Juicy1990
2021-06-29 22:20:13
- #1
Push Push and Moin Moin,
Only 4 months have passed and yet a lot has happened, some in a positive direction, other things in a negative one.
For us, things are definitely starting around September/October. The general contractor has already put up a construction fence with advertising on the property (without asking... :-))
Various preliminary talks with banks and financiers were positive, even though nothing is set in stone yet.
I’m curious to see what conditions KFW will come up with the day after tomorrow.
Well, back to the topic...
I’ll give a little update on the planned financing and am curious about your reactions.
The costs and financing needs:
Current financing requirement: €570,000 (Insane what a number)
The loan-to-value ratio is between 80 and 90%. It depends on how the land is valued, 80% according to the standard land value.
Between the production costs, i.e. what is relevant for the loan, and the total costs, there is another €60,000 difference.
Out of laziness, I won’t break it down here in the smallest detail, but I think you can get an overall picture for now.
Regarding financing, I tend to go for KFW (€150,000) + annuity loan (€420,000) with 2.5% repayment.
For a short time, I even considered only the annuity loan, since KFW now also pays out the subsidy as a lump sum, but as I said, I want to first see how the conditions will turn out.
I found that quite appealing because it leaves some liquidity towards the end and you can decide yourself whether or not to make special repayments.
Well, let's establish: we need €570,000 from the bank.
The last offers from April and May were around €1,800 annuity for about 15 years and 1.3% interest, for example.
The income:
However, something has also changed regarding the income.
She
As mentioned at the beginning, my better half is currently still on parental leave.
Return to work is firmly planned from October and contractually fixed with her employer.
She will then earn €1,800 net per month at 25 hours part-time, without any special payments such as holiday pay/Christmas bonus/travel allowance/bonus.
He
My fixed monthly salary from July will be €3,900 net (approx. 10% annual bonus on base salary is not included, as it is at least partially variable).
The little one still brings home €219 every month.
All in all, that is €5,900 fixed household income.
The doubts:
Various rules of thumb like max loan amount = 110*net income or annuity not exceeding 35-40% of net income, ... check out. That’s great, but somehow doesn’t help me much.
My household budget also confirms this (the figures on page 1 haven’t changed much). We would have comfortably managed the rate even with less income in recent months and even put away a few hundred euros on the side. Although during the corona time the pubs were largely closed ;-)
Nevertheless, given these numbers, I am still torn back and forth!
This forum is also quite critical, so I’m already looking forward to your thoughts on this.
If you’re missing any significant details, I’m happy to provide them.
Thanks in advance to everyone and have a nice rest of the evening despite the result in Wembley!
PS: As in the original post, I again ask for a respectful interaction, which has worked very well so far.
Only 4 months have passed and yet a lot has happened, some in a positive direction, other things in a negative one.
For us, things are definitely starting around September/October. The general contractor has already put up a construction fence with advertising on the property (without asking... :-))
Various preliminary talks with banks and financiers were positive, even though nothing is set in stone yet.
I’m curious to see what conditions KFW will come up with the day after tomorrow.
Well, back to the topic...
I’ll give a little update on the planned financing and am curious about your reactions.
The costs and financing needs:
Current financing requirement: €570,000 (Insane what a number)
The loan-to-value ratio is between 80 and 90%. It depends on how the land is valued, 80% according to the standard land value.
Between the production costs, i.e. what is relevant for the loan, and the total costs, there is another €60,000 difference.
Out of laziness, I won’t break it down here in the smallest detail, but I think you can get an overall picture for now.
Regarding financing, I tend to go for KFW (€150,000) + annuity loan (€420,000) with 2.5% repayment.
For a short time, I even considered only the annuity loan, since KFW now also pays out the subsidy as a lump sum, but as I said, I want to first see how the conditions will turn out.
I found that quite appealing because it leaves some liquidity towards the end and you can decide yourself whether or not to make special repayments.
Well, let's establish: we need €570,000 from the bank.
The last offers from April and May were around €1,800 annuity for about 15 years and 1.3% interest, for example.
The income:
However, something has also changed regarding the income.
She
As mentioned at the beginning, my better half is currently still on parental leave.
Return to work is firmly planned from October and contractually fixed with her employer.
She will then earn €1,800 net per month at 25 hours part-time, without any special payments such as holiday pay/Christmas bonus/travel allowance/bonus.
He
My fixed monthly salary from July will be €3,900 net (approx. 10% annual bonus on base salary is not included, as it is at least partially variable).
The little one still brings home €219 every month.
All in all, that is €5,900 fixed household income.
The doubts:
Various rules of thumb like max loan amount = 110*net income or annuity not exceeding 35-40% of net income, ... check out. That’s great, but somehow doesn’t help me much.
My household budget also confirms this (the figures on page 1 haven’t changed much). We would have comfortably managed the rate even with less income in recent months and even put away a few hundred euros on the side. Although during the corona time the pubs were largely closed ;-)
Nevertheless, given these numbers, I am still torn back and forth!
This forum is also quite critical, so I’m already looking forward to your thoughts on this.
If you’re missing any significant details, I’m happy to provide them.
Thanks in advance to everyone and have a nice rest of the evening despite the result in Wembley!
PS: As in the original post, I again ask for a respectful interaction, which has worked very well so far.