Hausbau2425
2023-04-24 18:38:01
- #1
Hello everyone,
longtime silent reader and not completely inexperienced in this area, I need your advice or input.
We have found a plot of land that appeals to us and where we are considering taking the next step.
The plot costs about €520,000 (600 sqm) including incidental costs.
Currently, we live in a newly built end-terrace house (150 sqm) in a big city, which we bought in 2020 and moved into in 2022 after completion.
Before that, we lived in a condominium, which we sold last year.
We have parked the loan of this apartment (remaining debt €220k at 1.7% and monthly installment €980) with the bank.
Our terraced house itself has a remaining debt of about €500,000 with the same bank, financed at 1.2% (installment just under €2,000).
I would conservatively estimate the value of the terraced house at €750,000, probably more.
Additionally, we have equity of almost €280,000.
Our plan would be to use the equity and the loan from the apartment, which is parked at the bank, for the plot. There are still several plots available; we have not yet entered into price negotiations, which we definitely would.
Then start the planning slowly and calmly so that construction begins at the beginning of 2025.
The money for the house would come from the sale of the terraced house.
What I absolutely cannot estimate is the construction itself.
The plot is located in a newly developed area.
We would like to have a house with 180-200 sqm, a fireplace, a large garage, a gallery, etc., so rather upscale.
My calculation would be approximately 190 sqm * €3,500 = €665,000
Additional building costs about €50,000
Buffer: €35,000
Overall, the project would be just over €1.25 million.
Equity would be around €500,000 - €550,000.
Monthly burden from the loans only would be just under €3,000.
We can afford it, I would say; the sum is of course not negligible, but the equipment is also our wish. Otherwise, we could stay in the terraced house; there is enough space, but it is not the same as a detached house with everything included.
What is your opinion, does it fit financially, also regarding the estimate?
We would inquire here in the house building world and at Luxhaus, Huf Haus, etc. (so rather upscale) in the next days to get a rough direction. Later of course also a general contractor, whom I know well and who builds very high quality.
Our current situation looks like this:
General information about you:
Income and asset situation:
Expense situation:
Housing costs: €2400
Mobility costs: €730
Insurance costs: €150
Living expenses: €1700
Savings: €700
Other expenses: €980
Income and expense totals:
General information about the property:
Building or purchase costs:
Cost summary:
I have already entered all information slightly higher regarding our ongoing costs. We like traveling, we treat ourselves, go out to eat with friends, etc. Of course, we know that when children come it will be a bit tighter with parental leave, daycare, etc. Currently, we live in a Rhine metropolis and would move somewhat more rural but still with a tram connection to the current city.
I find the sum naturally not insignificant, but clearly, plot prices are just high, and building itself has not become cheaper and will not.
What is difficult to assess is simply what our current terraced house will bring in the end in a very upscale condition; therefore, we have calculated a bit conservatively.
The sum does not cause me sleepless nights, but €3,500 per month in burden is not negligible, although we almost have that now anyway, but with the option to redeem the parked loan or to buy a condominium for renting.
After the interest rate expiry, some properties remain (young new builds), which could be sold after the 10-year period. But not before 2027.
longtime silent reader and not completely inexperienced in this area, I need your advice or input.
We have found a plot of land that appeals to us and where we are considering taking the next step.
The plot costs about €520,000 (600 sqm) including incidental costs.
Currently, we live in a newly built end-terrace house (150 sqm) in a big city, which we bought in 2020 and moved into in 2022 after completion.
Before that, we lived in a condominium, which we sold last year.
We have parked the loan of this apartment (remaining debt €220k at 1.7% and monthly installment €980) with the bank.
Our terraced house itself has a remaining debt of about €500,000 with the same bank, financed at 1.2% (installment just under €2,000).
I would conservatively estimate the value of the terraced house at €750,000, probably more.
Additionally, we have equity of almost €280,000.
Our plan would be to use the equity and the loan from the apartment, which is parked at the bank, for the plot. There are still several plots available; we have not yet entered into price negotiations, which we definitely would.
Then start the planning slowly and calmly so that construction begins at the beginning of 2025.
The money for the house would come from the sale of the terraced house.
What I absolutely cannot estimate is the construction itself.
The plot is located in a newly developed area.
We would like to have a house with 180-200 sqm, a fireplace, a large garage, a gallery, etc., so rather upscale.
My calculation would be approximately 190 sqm * €3,500 = €665,000
Additional building costs about €50,000
Buffer: €35,000
Overall, the project would be just over €1.25 million.
Equity would be around €500,000 - €550,000.
Monthly burden from the loans only would be just under €3,000.
We can afford it, I would say; the sum is of course not negligible, but the equipment is also our wish. Otherwise, we could stay in the terraced house; there is enough space, but it is not the same as a detached house with everything included.
What is your opinion, does it fit financially, also regarding the estimate?
We would inquire here in the house building world and at Luxhaus, Huf Haus, etc. (so rather upscale) in the next days to get a rough direction. Later of course also a general contractor, whom I know well and who builds very high quality.
Our current situation looks like this:
General information about you:
[*]How old are you? 36 and 30
[*]Are there children? None, but there should be at least one in 2-3 years
[*]What do you do professionally? She, educator & He in finance
[*]Both employed, She 39 hours, He 40 hours
Income and asset situation:
[*]What income do you have (gross/net)? He €5700 net, She €1800 net, annual bonuses/Christmas bonus/vouchers etc. about €6,000 per year, salary increases occur regularly thanks to collective agreement
[*]How much child benefit do you receive? 0 €
[*]How much equity do you have? approx. €280,000 (diversified across different asset classes but available short-term)
[*]How much equity do you want to invest in the house project? All
Expense situation:
Housing costs: €2400
[*]Current cold rent: €2,000 monthly loan installment to the bank
[*]Homeowners’ association fees: €300
[*]Electricity: €70
[*]Phone, internet, mobile: €30
Mobility costs: €730
[*]Leasing: €400
[*]Insurance: €50
[*]Taxes: €30
[*]Fuel: €200
[*]Repairs: €50
Insurance costs: €150
[*]Occupational disability + household contents + liability + accident
Living expenses: €1700
[*]Groceries
[*]Restaurant costs
[*]Personal care/drugstore
[*]Pets (food, vet, medication, stable costs)
[*]Medication
[*]Clothing
[*]Furniture
[*]Daycare/school fees (and meal costs)
[*]Toys
Savings: €700
[*]Vacation: €200 Rest from bonuses and Christmas bonus
[*]Miscellaneous: €500 (buffer)
Other expenses: €980
[*]Loans? The parked loan with the bank with repayment
Income and expense totals:
[*]Total income: €7,500
[*]Total expenses: €6,660
[*]Balance: €840
[*]Of that sum cold rent and dispensable savings (e.g. saving rate for house): €3,000
General information about the property:
[*]How big is the plot? 600 sqm, previously used as garden land, but located in an approved development plan area,
[*]What are the dimensions? 16*37 m, rectangular, level terrain
[*]What is the standard land value? €650
[*]New build, old building (year built), house type? New build, gable roof,
[*] ? Large, rather double garage, if possible
[*]How big is the house? ( / usable area) 180-190 sqm
[*]What market value do the plot and house have after completion? Around €1.2 million, probably more
Building or purchase costs:
[*] : €500,000
[*]Development costs: I have to ask the neighbors who are building next to us
[*]Ancillary acquisition costs (notary, court, property transfer tax, broker): only tax & notary: €38,800 is included in the plot price
[*]Building or purchase costs (incl. , ): none yet
[*]Additional building costs + partially outdoor facilities, driveway already existing: I calculate €50,000
[*]Total costs: I calculate €1.25-1.30 million
Cost summary:
[*]Total costs: €1,250,000
[*]Deductible equity: 500,000
[*]Financing amount: €750,000
I have already entered all information slightly higher regarding our ongoing costs. We like traveling, we treat ourselves, go out to eat with friends, etc. Of course, we know that when children come it will be a bit tighter with parental leave, daycare, etc. Currently, we live in a Rhine metropolis and would move somewhat more rural but still with a tram connection to the current city.
I find the sum naturally not insignificant, but clearly, plot prices are just high, and building itself has not become cheaper and will not.
What is difficult to assess is simply what our current terraced house will bring in the end in a very upscale condition; therefore, we have calculated a bit conservatively.
The sum does not cause me sleepless nights, but €3,500 per month in burden is not negligible, although we almost have that now anyway, but with the option to redeem the parked loan or to buy a condominium for renting.
After the interest rate expiry, some properties remain (young new builds), which could be sold after the 10-year period. But not before 2027.