Real estate financing: realistic or too optimistic?

Hello,

I would like to ask about your experiences, whether you consider our property financing to be realistic or not:

Purchase price (single-family house): 195,000,- (existing property)
Additional costs for purchase: ~ 25,000,- (all incl. broker)
Modernization: ~ 12,000,- (heating)

Equity: ~ 38,000,-

From the equity, I want to pay the full additional costs and from the remaining 13,000,- I want to use 8,000,- for renovation/modernization. Since this will not be quite enough, I plan to finance another 5,000,-.

The "specialist proposal":

125,000,- annuity loan, 28 years (fixed interest: 15 years)
17,000,- KFW No. 141 (for heating and renovation), 15 years (full repayment)
70,000,- KfW No. 124, 30 years (fixed interest: 15 years)

Should cost ~ 1,200,- monthly. Our family net income (with two small children):

EUR 3,200,- to 3,900,- (depending on my wife’s involvement)

For additional costs, I calculate EUR 3,-/m2 = 420,- (everything is from 1983)

Looking forward to your comments; also on the financing plan!

Thanks in advance.

Hello,

I see the sound barrier at 50% of the net income.
Which still leaves some leeway for the kids.

However, I could imagine that besides the heating renewal, the building envelope could also be improved energetically.

I see this as a calculation example, meaning increased burden versus savings in the ancillary costs.

Best regards

@ parcus:

Thank you. I see that you are also a KfW consultant.

Is the proposed financing clever?

Do you also offer such services commercially? I would still need a good tip or a financing specialist

Thank you and best regards,
charlyfirpo

I consider the amount of €12000 for [Sanierung und Modernisierung] to be too little; there will certainly be more, either immediately or in a few years when the burden is highest.

Hello charlyfirpo,
as an experience value, from the year of manufacture 1977 onwards I would calculate with at least €50,000 in renovation costs. From the financing side, however, you still have leeway. Modernization aside.

Best regards