Realistic credit framework

Good evening,

we are in our early 30s and have a two-year-old son. We live in southern Hesse near FFM and have a price-attractive plot of land in sight here with 255 € per sqm / 450 sqm = approx. 125,000 € including 8% VAT and notary fees. A single-family house with 150 sqm without a basement is to be built on it. Before I deal with the numerous details regarding the house, I need a realistic assessment.

The following is available:

Equity capital: 80,000 €

Fixed costs type Income

Rent 1,050.00 € Salary1 1,950.00 € WG+UG 3,000.00 €
Daycare 310.00 € Salary2 2,296.00 € Bonus 5,000.00 €
Insurance 150.00 € KG 190.00 €
Electricity 40.00 €
Internet 20.00 €
Fuel 200.00 €
Food 400.00 €
Child savings plan 120.00 €
Broadcasting fee 15.00 €
Clothing 100.00 €
Going out 150.00 €
Vacation 450.00 €
Phone 10.00 €
Car 100.00 €


Total 3,115.00 € Total 4,436.00 € Gap 2,371.00 €
*Without rent 2,065.00 €


Since we have been saving money again and again for a long time, I have prudently calculated the average savings amount for 2016 with 1,500 per month, so that the assumption with the gap of 2,371 € is quite realistic. Loan amount should be around 320,000 € + equity capital 80,000 € = 400,000 €, after deducting the plot of land we would therefore have 275,000 € to "build with". According to the Anu. calculator, a full repayment with 3% and 2.5% interest is to be expected after about 25 years. The monthly burden is 1,466 € and I am calculating with an interest rate fixation of at least 20 years.

The following questions arise here:

- 275,000 € realistic for a finished house with 150 sqm living space + garage and outdoor facilities?
- Loan of 1,500 € + 400 € ancillary costs = 1,900 € per month according to the listing, I still have a buffer of 400 € per month + the 8,000 € WG and UG and the bonus per year.

I hope for honest assessments of the situation.

Thanks in advance

So a house for 275k will be difficult if then only standard equipment.

Double garage roughly calculate 20-25k

Outdoor area can cost 10k or 30k if slope even more.

Construction additional costs approx. 30000

Kitchen cannot and should not be financed anymore.

So roughly 190000k remains for the house and that does not exist and if someone tells you otherwise there is usually a catch.

You could consider a carport or first without.

Outdoor area can also be done in the 2nd year, a gravel parking lot works too.

Hello,

you have a healthy income, a good savings rate, and are established in life (child). So you know what life for three costs :p

What seems too low to me are the construction costs for the house, but other forum members can assess that better.

I can only agree with the previous speakers and add that you should probably already calculate 1,700 - 2,000 EUR per sqm of living space (according to my experience here ;) ).

150 x 1,800 = 270,000 + garage + ancillary construction costs (TomTom listed the approximate costs above).

So a total sum of about 450,000 EUR (including the plot). I think with your 80,000 EUR equity you will be able to get this financed by a bank and also manage it. But if the installment is too high for you, save some more equity before the construction - possibly buy the plot now though. 225 €/sqm near Frankfurt already sounds attractive ;)

Please just note that with many plots there is an obligation to build on them within 2 years at the latest.

You can do it that way.
It's similar for us. A bit more salary, but also the total loan amount a bit higher.

But as others have already said, 400k all in might be a bit difficult. We are currently calculating with almost 490k without any external facilities. As tomtom already wrote, those can also be done in the following year.

I would try to put the bonus and the extra money into the special repayment, then the whole thing will be paid off faster.
The interest rate should actually be better than 2%, I would at least be surprised if it doesn't go down further.

May I ask in which area you are building?

Hello everyone,

I just noticed that the presentation of my actual situation is completely unclear due to the wrong formatting. Sorry about that.

: We would put up a prefabricated garage which hopefully will be cheaper. Why can’t the kitchen be financed together? Ultimately, I am responsible for the credit limit and can control that.

:
I assume the following for the construction loan:

Land
Price + development €116,280
Land transfer tax: €6,976
Surveying: €3,000
Notary: €1,521
Gas connection: €2,500
Electricity connection: €2,000
Internet + phone: €1,500
Expert: €10,000
Architect €25,000
Insurance: €500
Shell construction: €105,000
Interior finishing: €80,000
Roof: €30,000
Excavation + disposal: €4,000
Construction water + electricity: €1,500
Foundation raising: €2,500
Construction interest: €3,000
Outdoor facilities €12,000
Garage: €10,000

Total €417,277

Are the assumptions realistic from your point of view?

: The land is in Babenhausen.

Best regards