Purchase land, demolition, and new construction

Here are the key data:

Plot with purchase incidental costs and demolition: 180K
Danwood Point 123 with foundation slab: 180K
(turnkey with painting and floors)
Additional construction costs: 40K
Carport and outdoor facilities 10K
---> Total 410K


I am a civil servant.

Net net currently (Christmas bonus included) after private health insurance:
3060 Euros

Net net from 2018 (Christmas bonus included) after private health insurance:
3150 Euros


Financing 1

BHW construction loan building savings contract 250,000 (2.07% for total term)
KfW 1 100,000 (1.56%)
KfW 2 20,000 (1.46%)
Equity 40,000

Rate in the repayment-free year: 940 Euros
Rate until 2032: 1200
Rate from 2032: 1510 (if KfW 2 repaid: 1430)
[RISIKO: Zinsbindung KfW 1: 10 Jahre]

(+ life insurance annually 400 Euros)

Financing 2

Debeka
Bank loan 208,000 (2.2%) --> term 30 years
Civil servant loan 62,000 (2.49%) --> term 23 years
KFW 100,000 --> term 10 years
Rate: 1386 Euros
[RISIKO: Zinsbindung KfW 1: 10 Jahre]
(+ life insurance annually 400 Euros)

I have kept a detailed Excel household budget for three years and noted everything down. I am frugal but not stingy. I have about 1700 Euros left over monthly, from 2018 probably 1800 Euros.

Critical voices in my circle of acquaintances:
- "Building a house alone is too risky."
- "You only live for the house."
- "What will you do when wife and children come."
- "Don’t choose a cheap prefabricated house provider."
- "You always have to reckon with 20% extra costs; the 40K then become your ruin as subordinate loan."
- "The house doesn’t have a basement."
- "Whether the house really gains value in your nowhere town if you have to sell it..."
- "You pay until you retire and beyond."
- "You can never work part-time."

Positive voices:
- "Unterminable contract and 3000 Euros net. Many families don’t have that."
- "You can always sell the house again."
- "The interest rates are still low now."
- "Just add the basement, then it just costs 150 Euros more per month."
- "Boom region. Value increase guaranteed."
- "You earn 2% more each year. In 10 years the rate will be less than one third of your income."
- "Thanks to your salary increases you make special repayments and will be finished in 20 years."

What do you think?

Danwood Point 123 with floor slab: 180T (turnkey with painter and floors)

never... Expect 500k+. Equity is okay and 3000 net is also quite nice... but as company income (since you are alone) not that much after all. For me, the equity would be clearly too low. Unterminable, however, is of course also a strong argument.

Regards, Steffen

Hello building official ;),

It would be helpful to explain at the beginning that you have already started several discussions here, so that you don’t constantly get the same things celebrated.
Hardly any user can remember having already answered you some time ago.
Since I’m already at it: many questions from you, many answers for you... but in the individual topics there is hardly any summary from you, nor a thank you for the answers, you really don’t let us know what you think of the answers, how you have decided. You keep yourself out of your own discussion :(

One could well and truly now bring up the topic Danwood and house prices ... an endless loop basically [emoji847]

In brief regards

Hello YPG, sometimes there was no summary because everything is in flux and, of course, I often hoped for further answers. As far as I can see, I have repeatedly contributed to my discussions, provided feedback on the answers, and there should have been a "thank you" or two included. :) If a different impression has arisen, then I am sorry :-(

In the end, it is becoming more and more concrete over time. What started as an idea is now taking shape, as can be seen by the fact that alongside my offer data for the house, land costs, and more precise salary development, financing data is also provided. I would have already appreciated more concrete feedback from you. ;-)

Danwood Point 123 with floor slab: 180T (turnkey with painter and floors)

never... Calculate with 500k+. Equity is okay and 3000 net is also quite nice... but as a company income (since you are alone) still not that much. For me, the equity would be clearly too low. However, a non-terminable contract is of course also a strong argument. Regards, Steffen

So you are calculating that on top of the 180T at least 90T more pure house costs will come, in addition to the ancillary construction costs of 40T??? That would already be harsh.

That is not necessary. but take a close look at what Danwood standard offers and whether that is enough? There must then be agreement that there is nothing extra. Period. End of story. Karsten