Savings beginner with questions about the plausibility of the "rough" plan

I bet with you that after the appointments at the banks you will want to start building immediately!

Make two appointments in January with an independent financial advisor and with your local bank.

Don’t let them sell you anything!

: How do you come to that conclusion?

I would actually only do that if the bank can plausibly convince me that I can repay a loan of 450K in 30 years with EUR 1,000,- per month. THEN I would indeed immediately look for a suitable plot and build.

As long as that is not the case, I see no danger

: You can't really sell me anything... Because there's nothing to get from me. Unless he enables me the above mentioned. Then it would actually become something.

Question: Would a financing with the following parameters be realistic taking into account the above-mentioned values?

- Loan amount: EUR 400,000 (for house and land)
- Additional costs: EUR 70,000 (kitchen, garden, notary, taxes, etc...)
- Monthly burden: EUR 1,500 (incl. interest, repayment, additional costs, reserves).

But somehow I have the feeling that I am forgetting something or doing something wrong.

From my point of view, you should deal briefly with the topic of equity capital again. The 400k for the house means that your house is worth 400k. The additional costs of 70k are, from the bank’s perspective, "your problem" or "sunk costs" and do not represent any value for the bank.

Accordingly, what you describe above would be a full financing where you contribute 0% equity capital to the property. The interest rates for full financing differ significantly from the interest rates of financing with 20% equity capital.

For a 10% financing, you would need 110k equity capital, and for a 20% financing (from here the interest rates become really reasonable), 150k equity capital.

But as already mentioned, it’s best to discuss this in a financing consultation appointment.

: You are right. I still need to read up more to properly understand everything. I will take another look at the equity.

I will schedule some appointments next week and then see what’s going on.
I will keep you updated if you want.

Regards
Mattheu

I have calculated the invoice the other way around. The result is "sobering".
Here it is:

Desired rate: 1200 (incl. operating costs)
Operating costs: 300 (for 150sqm and 2EUR per sqm)
KFW: 160 (KFW124 with 50K)
--------------------------------------------------------
Gives: 740 (should include 2.4% interest and 2% repayment for an 80% financing)

740x12 = 8880 annually (These correspond to 4.4% repayment incl. interest)

8880 x 100 / 4.4 = 201,818.18EUR
KfW loan = 50,000,- EUR
Equity capital = 70,000,-EUR
--------------------------------------------------
321,818.18EUR (incl. notary 2% and tax 6.5% ---> 8.5%)

321,818.18 / 1.085 = 296,607EUR

So I could afford a house value of EUR 296,607EUR....
And no fancy furnishings or anything else are included yet

But as I said... I will have everything calculated precisely and hopefully be wiser then!

Regards
Mattheu