toxicmolotof
2014-06-13 21:33:41
- #1
So dear people,
I have been writing for a while now, and we have had our building permit for a few months. Now we are in the final stages of the construction financing, which I would like to present to you.
We are building a single-family house with a mezzanine floor in Bauhaus style and with approximately 130 sqm of living space plus garden, terrace, and roof terrace.
We have total costs of 360,000 EUR, which are broken down as follows:
Our financing naturally also amounts to 360,000 EUR
Regarding interest and repayment rates:
That would put me overall at average costs for borrowed capital of 1.41 % (1.25 % interest + 0.16 % administration fee) with a rate initially of 664 euros, but by the third year 782 euros.
Of this, initially 476 euros are loan repayment and 306 euros interest or administration fees. The repayment portion logically increases with each payment, while the interest portion decreases.
The loans are planned so that after about exactly 20 years, we have repaid about 50%, by 35 years (approximately retirement start) all loans except the NRW.Bank loan are fully repaid, and then during retirement only loan no. 4 (then still just under 50,000 EUR) has to be paid off with 125 euros (or more then). In this whole consideration, I have possibly not taken into account extra repayments or increases in repayment rates. These would of course drastically shorten the result, but the NRW.Bank initially only offers the loan like this.
We are practically fixed with this condition for at least 10 years, as unfortunately our income will not develop positively enough to exceed the income limits for the state funds. Should the income unexpectedly increase so much that the interest on the subsidies rises in 5 years, then we will not care about that with the income by then either.
Our family situation:
We are a young family, 30 years old, have a son nearly 10 months old and live in a rented apartment that costs 295 euros cold rent plus utilities, electricity, heating, etc. We have a monthly savings rate of about 550 euros.
Now to our personal income situation:
In total, we are at least at 2,150 euros (on an annual average rather 2,475 euros). To be honest, the non-tariff bonuses always go for extras anyway, so not considered.
If I now consider our previous cold rent and savings rate, we come to 845 euros, which we can imagine as the maximum credit rate. Of course, we also know that this is relatively tight. Our conclusion is therefore still that we can well imagine this model. Besides, we don’t care whether we have to pay 295 euros rent or 306 euros interest. The outlook for the rent is clearly rising, but the interest burden will almost certainly fall to 240 euros in the first 10 years. And even if the interest rises to 4.5 % (which has practically never happened since the introduction of the euro), we would still be at a maximum of 765 euros interest. A comparable newly built apartment (from 2009) in our region (+20 km) would already cost at least 800 euros today. In ten years, at least 1,000 euros will be due for it.
So now all we have to do is sign the contracts. And what do you think?
I have been writing for a while now, and we have had our building permit for a few months. Now we are in the final stages of the construction financing, which I would like to present to you.
We are building a single-family house with a mezzanine floor in Bauhaus style and with approximately 130 sqm of living space plus garden, terrace, and roof terrace.
We have total costs of 360,000 EUR, which are broken down as follows:
[*]84,000 EUR land
[*]217,000 EUR construction costs
[*]32,000 EUR engineering and planning services
[*]27,000 EUR various incidental costs
Our financing naturally also amounts to 360,000 EUR
[*]84,000 EUR paid for the land
[*]16,000 EUR equity
[*]98,000 EUR construction loan Sparkasse
[*]50,000 EUR loan KFW (153)
[*]27,000 EUR employer loan
[*]75,000 EUR loan NRW.Bank
[*]10,000 EUR starter loan from NRW.Bank
Regarding interest and repayment rates:
[*]Sparkasse loan
98,000 EUR
1.91 % p.a. nominal interest
10 years fixed interest period
2.00 % p.a. repayment
monthly rate 319 euros
[*]KFW loan
50,000 EUR
1.90 % p.a. nominal interest
10 years fixed interest period
2.84 % p.a. repayment from the 3rd year
monthly rate first 3 years 80 euros, thereafter 198 euros
[*]Employer loan
27,000 EUR
0.00 % p.a. nominal interest
25 years fixed interest period
4 % repayment
monthly rate 91 euros
[*]NRW.Bank loan
75,000 EUR
0.50 % p.a. nominal interest
0.50 % p.a. administration fee on initial balance
5 years fixed interest period, conditions extendable if equity limits are not exceeded.
1 % p.a. repayment
monthly rate 125 euros
[*]NRW.Bank starter loan
0.50 % p.a. nominal interest
0.50 % p.a. administration fee on initial balance
5 years fixed interest period, conditions extendable if equity limits are not exceeded.
5 % p.a. repayment
monthly rate 50 euros
That would put me overall at average costs for borrowed capital of 1.41 % (1.25 % interest + 0.16 % administration fee) with a rate initially of 664 euros, but by the third year 782 euros.
Of this, initially 476 euros are loan repayment and 306 euros interest or administration fees. The repayment portion logically increases with each payment, while the interest portion decreases.
The loans are planned so that after about exactly 20 years, we have repaid about 50%, by 35 years (approximately retirement start) all loans except the NRW.Bank loan are fully repaid, and then during retirement only loan no. 4 (then still just under 50,000 EUR) has to be paid off with 125 euros (or more then). In this whole consideration, I have possibly not taken into account extra repayments or increases in repayment rates. These would of course drastically shorten the result, but the NRW.Bank initially only offers the loan like this.
We are practically fixed with this condition for at least 10 years, as unfortunately our income will not develop positively enough to exceed the income limits for the state funds. Should the income unexpectedly increase so much that the interest on the subsidies rises in 5 years, then we will not care about that with the income by then either.
Our family situation:
We are a young family, 30 years old, have a son nearly 10 months old and live in a rented apartment that costs 295 euros cold rent plus utilities, electricity, heating, etc. We have a monthly savings rate of about 550 euros.
Now to our personal income situation:
[*]Monthly salary 1,965 euros (+2 extra salaries per the collective agreement + non-tariff bonuses)
[*]Child benefit 185 euros
[*](Parental allowance 390 euros, or soon childcare allowance 150 euros)
In total, we are at least at 2,150 euros (on an annual average rather 2,475 euros). To be honest, the non-tariff bonuses always go for extras anyway, so not considered.
If I now consider our previous cold rent and savings rate, we come to 845 euros, which we can imagine as the maximum credit rate. Of course, we also know that this is relatively tight. Our conclusion is therefore still that we can well imagine this model. Besides, we don’t care whether we have to pay 295 euros rent or 306 euros interest. The outlook for the rent is clearly rising, but the interest burden will almost certainly fall to 240 euros in the first 10 years. And even if the interest rises to 4.5 % (which has practically never happened since the introduction of the euro), we would still be at a maximum of 765 euros interest. A comparable newly built apartment (from 2009) in our region (+20 km) would already cost at least 800 euros today. In ten years, at least 1,000 euros will be due for it.
So now all we have to do is sign the contracts. And what do you think?