Purchase from the developer at the end of the year - Financial assessment

  • Erstellt am 2021-01-05 18:07:16

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
 

Thoma0886

2021-01-05 20:03:53
  • #2
Sounds basically doable despite the lack of equity. I fear that with 330 K for a semi-detached house it won’t work even in the Ruhr area. I would rather expect around 400 K, since construction costs are continuously rising. I would simply request conditions through the common intermediaries (Interhyp/Dr. Klein) to get an initial overview. Due to your secure jobs, maybe also consider a shorter fixed interest period or at least inquire about it. All experts agree that interest rates will not rise significantly over the next 10 years, if they increase at all again in the Euro area. Of course, it’s a matter of taste.
 

11ant

2021-01-05 20:08:47
  • #3
I will stay out of financing questions out of awareness of my lack of knowledge. Buying from the developer sounds good: at 27 years old, you don’t have much living experience, meaning first, the likelihood of designing a significantly better house yourself is low; second, this won’t be the last house at this age; and third, when the still unborn children start to "make demands," you will soon be "in the next house." So, from my perspective, a good time and developers are generally perfectly fine.
 

Maschi33

2021-01-05 20:32:47
  • #4

Phew, for "fully basemented" that would be an absolute bargain even in the Ruhr area. Do you have a written offer for that?
 

Naturliebhaber

2021-01-05 21:08:09
  • #5
The conditions should safely allow the project. Nevertheless, the whole thing seems somewhat cheap to me. I would expect significantly more.
 

nordanney

2021-01-05 21:13:20
  • #6

It still works for the Ruhr area. 100m from me, Deutsche Reihenhaus has just built a residential estate. All in from €230k including land without a basement for terraced houses.
 

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