LaMesa619
2021-01-05 18:07:16
- #1
Hello everyone,
we (m 27 & f 27) are still in the early planning stages and hope for some expertise and assessments regarding our project. It has been clear to us for some time that we would like to build/buy a house, but we have both completed longer training paths with studies, etc., which is why we can only start realistic planning this year. We will be completely finished in May, so the following dates will also refer to this time.
About us:
Who are you? m (27) & f (27)
Net income: (m) €3000 / (f) €2100 (regular increases)
Professional situation: (m) civil servant / (f) public service (TVöD)
Children: No, but definitely planned in the foreseeable future
Our expenses:
Mobility costs: We both each started financing a car last year. Monthly total costs for both vehicles (including fuel and insurance): €563
Insurances (incl. private health insurance): €407
Groceries / drugstore items: €400-450
Electricity & gas: €100
Subscriptions / mobile phone / TV license fee / donations / internet: €150
Consumption (clothing, eating out, cinema, etc.): We do not have a fixed monthly amount. Sometimes it is €400, sometimes €600. Generally, we do not throw money out the window but also like to occasionally treat ourselves to a cinema or restaurant visit on weekends. Just to be safe, I would simply estimate around €700-800.
Rent: Currently, we live rent-free in a condominium owned by my family.
Total expenses: approx. €2400-2500
Balance: €5100 - €2500 = €2600
About the project:
We have had a developer in mind for some time who has already built many new housing developments in the Ruhr area. As luck would have it, this developer will soon be building a new housing development in one of our favored areas with excellent connections to work, family, and friends. The properties are expected to go on sale by the end of the year.
Data about the house:
Location: Ruhr area
Type of property: Fully basemented semi-detached house with a living area of approx. 145 sqm.
Price: Purchase price will be around €330,000 - €360,000
Additional costs: Upgrades (calculated precisely based on another house example from the same developer), painter’s costs, and landscaping approx. €50,000
Total price: €380,000 - €400,000
Due to our long training paths, the biggest challenge is, of course, our lack of equity. We definitely want to avoid 110% financing, which is why we already started saving a small amount in a home savings contract (Bausparvertrag) two years ago to at least be able to cover the ancillary purchase costs with this contract in the event of a home purchase in the coming years. However, this would only become eligible for allocation next year due to the waiting period, valuation number, etc. Alternatively, the idea came to me whether it would be possible to simply take out a regular installment loan without a specified purpose for the ancillary purchase costs in order to lower the interest rate for the mortgage? As far as I know, loans up to an amount of €30,000 are not recorded in the land register. Since the developer sells without brokerage fees, the ancillary purchase costs amount to just under €25,000.
For 100% financing with a 20-year fixed interest rate, I have seen an interest rate between 1.13% and 1.50% on various portals, which, with 2.5% repayment, corresponds to a monthly rate of €1200-1300. Do you consider these conditions realistic?
Deducting from our monthly balance (€2600), after paying the installment, we would be left with approx. €1400. We estimate house costs at just under €300. So, after all deductions, we would ultimately have around €1100 left for saving for vacations, maintenance, etc. Of course, we are aware that this will change with children. However, due to a change in tax classes, child benefits, and family allowance, we could offset this quite well. After parental leave, we would return to nearly our original incomes with part-time work. Later on, our salaries would then continue to increase at regular intervals by a few hundred euros each.
We could take most of our current furniture with us, as we recently bought it on a larger scale. We could pay for the kitchen ourselves until the house is built.
I hope I have presented all considerations clearly and appropriately. Basically, we might have given ourselves 1-2 more years, but the property is really very close to the ultimate. That is why this post serves as a small reality check. I would be very grateful for assessments, assistance, and advice on whether we have overlooked anything! :)
Best regards
we (m 27 & f 27) are still in the early planning stages and hope for some expertise and assessments regarding our project. It has been clear to us for some time that we would like to build/buy a house, but we have both completed longer training paths with studies, etc., which is why we can only start realistic planning this year. We will be completely finished in May, so the following dates will also refer to this time.
About us:
Who are you? m (27) & f (27)
Net income: (m) €3000 / (f) €2100 (regular increases)
Professional situation: (m) civil servant / (f) public service (TVöD)
Children: No, but definitely planned in the foreseeable future
Our expenses:
Mobility costs: We both each started financing a car last year. Monthly total costs for both vehicles (including fuel and insurance): €563
Insurances (incl. private health insurance): €407
Groceries / drugstore items: €400-450
Electricity & gas: €100
Subscriptions / mobile phone / TV license fee / donations / internet: €150
Consumption (clothing, eating out, cinema, etc.): We do not have a fixed monthly amount. Sometimes it is €400, sometimes €600. Generally, we do not throw money out the window but also like to occasionally treat ourselves to a cinema or restaurant visit on weekends. Just to be safe, I would simply estimate around €700-800.
Rent: Currently, we live rent-free in a condominium owned by my family.
Total expenses: approx. €2400-2500
Balance: €5100 - €2500 = €2600
About the project:
We have had a developer in mind for some time who has already built many new housing developments in the Ruhr area. As luck would have it, this developer will soon be building a new housing development in one of our favored areas with excellent connections to work, family, and friends. The properties are expected to go on sale by the end of the year.
Data about the house:
Location: Ruhr area
Type of property: Fully basemented semi-detached house with a living area of approx. 145 sqm.
Price: Purchase price will be around €330,000 - €360,000
Additional costs: Upgrades (calculated precisely based on another house example from the same developer), painter’s costs, and landscaping approx. €50,000
Total price: €380,000 - €400,000
Due to our long training paths, the biggest challenge is, of course, our lack of equity. We definitely want to avoid 110% financing, which is why we already started saving a small amount in a home savings contract (Bausparvertrag) two years ago to at least be able to cover the ancillary purchase costs with this contract in the event of a home purchase in the coming years. However, this would only become eligible for allocation next year due to the waiting period, valuation number, etc. Alternatively, the idea came to me whether it would be possible to simply take out a regular installment loan without a specified purpose for the ancillary purchase costs in order to lower the interest rate for the mortgage? As far as I know, loans up to an amount of €30,000 are not recorded in the land register. Since the developer sells without brokerage fees, the ancillary purchase costs amount to just under €25,000.
For 100% financing with a 20-year fixed interest rate, I have seen an interest rate between 1.13% and 1.50% on various portals, which, with 2.5% repayment, corresponds to a monthly rate of €1200-1300. Do you consider these conditions realistic?
Deducting from our monthly balance (€2600), after paying the installment, we would be left with approx. €1400. We estimate house costs at just under €300. So, after all deductions, we would ultimately have around €1100 left for saving for vacations, maintenance, etc. Of course, we are aware that this will change with children. However, due to a change in tax classes, child benefits, and family allowance, we could offset this quite well. After parental leave, we would return to nearly our original incomes with part-time work. Later on, our salaries would then continue to increase at regular intervals by a few hundred euros each.
We could take most of our current furniture with us, as we recently bought it on a larger scale. We could pay for the kitchen ourselves until the house is built.
I hope I have presented all considerations clearly and appropriately. Basically, we might have given ourselves 1-2 more years, but the property is really very close to the ultimate. That is why this post serves as a small reality check. I would be very grateful for assessments, assistance, and advice on whether we have overlooked anything! :)
Best regards