Hello you, I thought I could also try to give you a tip... so for us, the market value was assumed as equity (which in our case was below the purchase price). You really have to be careful with the additional costs, try to include as much as possible in your construction contract and avoid "builder’s scope" etc. Properly expensive can be for example
- house connections (gas, water, electricity) we once calculated about €5,000 per trade, and now JUST the water connection costs €13,000 (I contacted about 30 companies, and that was honestly the cheapest offer)!
- soil replacement - we are building in Hamburg - where are you building? - and there we had to spend another €12,000 to replace the non-load-bearing soil. In some cases, pile foundation has to be used, which adds €20,000 more right away
- some insurances might be added, for example a disability insurance or a term life insurance, also insurances for the house like liability or shell fire insurance
- authority fees - for example €1,800 for us for the building permit, the mortgage registrations at the land registry cost court fees and notary fees again
- our house has 215 square meters of living space and costs €380,000, however without own work like electrical and roofing as in your case. Keep in mind that if you have friends who "for a small fee" roof the house, you also have to insure them socially with the professional association!
- we also had to spend €2,300 to have the plot checked for bombs and €1,000 for toxic gases (official requirement, new since last year), we hired a building surveyor because we are no professionals ourselves (€2,400) and so on... in total (with realtor and purchase taxes) we have about €90,000 additional costs.
- when the kids are there and one goes back to work, care costs (for us so far for example €380 per child, but this has recently decreased)
I do think you can fit the rooms you mentioned into 150 sqm, that basically depends on you. There are also nice tools on the internet to plan that. We have 155 sqm for us with 6 bedrooms and also a 70 sqm separate apartment. That shall be rented out and so practically pay for itself ;-)
Financing
I would - considering the fact that your salaries probably won’t increase extremely - try to get as long a fixed interest period as possible, we got 30 years. Sure, that is more expensive but you don’t run the risk of not getting a suitable follow-up financing after 10 years. And what I like about our contract (we took out a loan of €500,000 and had €150,000 equity) is that our monthly rate is actually quite low at first (€1,900), but we have the option to make high special repayments quarterly, I think up to €12,000 per year. That really means great flexibility and if times are tight due to special expenses like a new car or something you just forgo the special repayments and catch up later.
- you should also have some reserves in case the move-in date is delayed. It is often the case that banks keep the loan interest-free for 1 year but you then have to draw it completely and pay interest. Bad if you also still have to pay rent then. For us, it’s probably just about manageable but since the building permit was delayed by 4 months it’s really tight!
I hope there were a few tips in there, tell me how it turned out!