Presentation Single-Family House New Construction Project 2022 including Cost and Financial Statement

Hello everyone,

I would now like to present my project here, which is supposed to start in October 2022. Since I have been quietly reading here for some time and I keep hearing that there are couples who do not yet have children but wish to have them, I hope to bring some clarity to the financial situation with our cost breakdown (we have 2 kids) in case of a "lack" of income.

The following profile can of course only be fully understood with a lot of additional explanations and clarifications, so please excuse me if not all points/things seem immediately understandable and logical to everyone. Since 2018, after moving into an existing single-family house, we have been keeping a household budget and can therefore provide quite precise figures for our situation.

What still interests me is from former home builders and current homeowners the topic of incidental costs for similarly sized construction projects. I am also interested in opinions on financing, as I personally believe that as a permanent single earner, this would not be affordable. However, since the wife wants to return to full-time work as soon as possible – if the age of the children and circumstances allow it – the second salary should come back in the next 3-5 years. Before parental leave, that was about €2,200 net.

Have fun reading now:

General information about you:
Who are you?	married couple
How old are you?	Both 33
Do you have children?	Two
Are children planned?	Family planning completed
What do you do professionally?	He developer, she currently on parental leave until 07/22, before that store manager
Are you employed, self-employed, retired, housewife, househusband, etc...?	He employed + small business owner, she on parental leave
How many hours do you work?	35h job + 5h side business
Income and asset situation:
What income do you have (gross/net)?	He €4,000 net (without bonuses -> approx. €6k net p.a.) + €200 side business; she from 09/22 base €450)
How much child benefit do you get?	€440.00
Other transfer payments like parental allowance, sickness benefit, etc...?	Parental allowance €600 until (07/22) and €250 family allowance until 07/24 but this is not included in the monthly income (see below) because it is finite
How much equity do you have?	€255k (another €22k will be set aside during construction as an additional price buffer)
How much equity do you want to invest in the house project?	€246k (9k price buffer)
Housing costs:
Current cold rent	Living in the house we bought with the land from the grandparents in 2018
Electricity	€67.00
Heating oil	€110.00
Water, sewage, garbage fees, street cleaning	€46.00
Telephone, internet, mobile phone	€48.00
Mobility costs:
Car loan (or savings rate for new car)	€150.00
Insurance	€36.00
Taxes	€20.00
Fuel	€40.00
Repairs	€30.00
Insurance costs:
Private health insurance (also supplementary insurance, daily sickness allowance etc.)	€26.50
Liability insurance (also pets)	€12.00
Capital or risk life insurance	€22.00
Legal protection insurance	€28.00
Living expenses:
Groceries	€600.00
Restaurant costs	€50.00
Personal care/drugstore	€50.00
Clothing	€120.00
Furniture	€60.00
Daycare/school fees (and meal money)	€170.00
Toys	€40.00
Savings contributions:
Vacation	Has so far been financed from bonuses or additional work in the side business "just in time" and did not have to be “saved up”
House	Variable between €2.5k and €5k depending on bonuses	[LEFT]
General reserve formation	€150.00
Other expenses:
Loans?	€600 (loan for the plot), €90k remaining debt, 3.66% repayment, 1.67% interest, 15 years fixed interest, remaining debt after 15 years (2033) €26k
Other? (property tax, broadcasting fee, chimney sweep)	€14 property tax, €18 GEZ, €10 chimney sweep
Income and expense totals:
Total income	€5,090.00
Total expenses	€2,517.00
Balance	€2,573.00
General information about the property:
How large is the plot?	300m²
What are its dimensions?	15x20m
What is the land value?	€1100/m²
New build, old building (year built), house type?	New build, 2 full floors, fully basemented (white tank)
Garages?	Dropped from the plan after the KfW subsidy expired
Living area / usable area	157m² / 75m²
What is the market value of the plot and house after completion?	Market value approx. €1.1 million (3 reference properties sold in the last 12 months for €1.15 – 1.4 million)
Construction or purchase costs:
Plot costs	Remaining debt €90k	Purchased in 2018 and financed separately
[LEFT]Demolition of old building including disposal (100m²)	€21k
House price as a flat rate (EE40 standard)	€509k
Building application/permit	€0	€830 already paid
[LEFT]Upgrades	€16k	Approx. €35k are already included in the house price, which we upgraded in advance (windows, flooring, technology)
Soil survey	€0	€2,900 already paid
Additional disposal costs for excavation (risk position)	€5k	Excavation included in flat rate, but if contaminated material is found in the soil (according to soil survey unlikely) it will be charged differently
Groundwater retention measures (risk position)	€33k	According to soil survey, water possible at 2.5m below ground level; new builds in the area only partially affected
Outdoor facilities	€38k	Deliberately budgeted somewhat higher since it will only be done in spring 2024
Public development	€12k	Consistently short development paths (<3m); electricity/telecom already available, water/sewage missing
Notary fees, surveying costs (stake-out)	€8k	€2k for notary + mortgage already paid
Furnishing (kitchen, furniture, lamps)	€44k
Construction water / construction electricity / drying screed (oil heating)	€7k
Cost summary:
Total costs	€696k
Deductible equity	€246k
Financing amount	€450k
Necessary loan details:
Loan amount	€450k	[LEFT]
Type of loan (e.g. annuity loan, bullet loan etc.)	Annuity loan	[LEFT]
Interest rate (p.a. nominal, otherwise effective)	1.30%	[LEFT]
Fixed interest period	15 years	[LEFT]
Remaining debt at end of fixed interest period	€300k	[LEFT]
Fictional total term until full repayment	38 years	[LEFT]
Initial repayment rate	2.00%	[LEFT]
Monthly rate	€1,240.00	[LEFT]
Are special repayments possible? (Please specify amount)	€22.5k p.a.	[LEFT]

After deducting the large installment, €1,333 per month would remain according to the current calculation. However, since living expenses tend to rise, we round that down to €1,000. That should be enough breathing room for the next 2-3 years before the kids start school.

Unfortunately, we missed out on the EE40 subsidy, so as a cost relief measure, we had to drop the garage for now.

I look forward to your questions / feedback / comments / tips.

If you can replan from 40EE to 55, the construction cost could still be reduced. The additional cost cannot be burned through in 2 lifetimes, even with 28° Nestwärme. Possibly, the garages will then be included again... Things tend not to get any cheaper...

Where can you currently get 1.3% interest for 15 years?

Where are you currently getting 1.3% interest for 15 years?

I assume the loan was taken out a few months ago.

If you can switch from 40EE to 55, you could further reduce the construction sum. The additional cost cannot be burned off in two lifetimes even with 28° nest heat. Possibly the garages are then included again... Nothing is really getting cheaper anyway...

The price difference is about 8k, which tells me that the general contractor probably charged too much for the 55 version. Right at the beginning, we set demands for the house and almost achieved the 40 standard. Only the insulation in the basement and the filled brick were missing to achieve EE40. If we leave that out, as I said, we only save 8k. That doesn’t make much of a difference. We secured the financing in February and probably also obtained it due to the good total loan-to-value ratio of land + house in relation to the debt (<50%). *Edit: The garage was credited to us at 32k, I think we would have to cut a bit more for that, and we didn’t want to compromise on the quality of the building fabric.

Total income 5,090.00 €

I add up less. Small business and bonuses probably are not counted… That doesn’t mean that I see an impossibility with you :)

What market value do the land and house have after completion? Market value approx. 1.1 million € (3 reference properties were sold in the last 12 months for 1.15 – 1

How do people always come up with that?! …

Loan amount 450k Loan type (e.g., annuity loan, bullet loan, etc.) annuity loan Interest rate (p.a. nominal, otherwise effective) 1.30 %

Have you already taken out the loan?