Single-family house 1,000,000 affordability - monthly installment?

  • Erstellt am 2021-02-25 11:09:47

icandoit

2021-02-25 14:26:09
  • #1


With 650k equity as collateral?
 

squier23

2021-02-25 14:48:44
  • #2
Nice to read that other lawyers with even better incomes also struggle with such a decision. Although at least some jurists can calculate contrary to popular belief, it remains largely an emotional matter, as has already been written. I therefore understand the desire for some exchange here in the forum. By the way, our decision was also an emotional one – the monthly burden is high for us due to a lack of equity (both academics with long studies, no wealthy parents) and I see a clear advantage with you that if you spare equity, you have a huge buffer for any uncertainties. We lack that, which already causes some grim moments before construction even begins.

So what I mean is: Use the low interest rate environment, maybe put a fraction of the equity into the financing to get below the 90% loan-to-value and possibly reduce the interest rate even further, and enjoy what we chose the high burden for: your own piece of green space (also coming from Bavaria the plots around Frankfurt are tiny), the feeling of freedom for your own decisions and the hope for an increase in value that should enable a later renewed construction with changed requirements (less space needed inside when the children have moved out, more space needed outside when retirement is spent at the flower bed).
 

MucBauherr

2021-02-25 14:49:48
  • #3
That is cost group 7! Those were the costs for tree felling! Cost group 5 outdoor facilities are not yet included...
 

MucBauherr

2021-02-25 14:56:51
  • #4

Colleague ;)
As I have noticed from the comments here, it is indeed a purely emotional topic. One wants to – I attribute this to a professional disease – mostly secure oneself because my job (work-life balance) might be only moderately something one wants to do until retirement. Even if reasonably well-paid.
The loan-to-value limit is actually not decisive since the land is definitely worth more than the actual house. And that brings us to the actual topic. In hindsight, I would have given up a square meter or two on the plot to have a bit more (mental) breathing room in financing the construction project. Back then, I mistakenly assumed different prices.
 

MucBauherr

2021-02-25 15:12:30
  • #5

This is also the argument of the architect who casually priced himself at around 80,000. Is the fee acceptable like that? The goal is to largely entrust the construction management to the architect.
 

Osnabruecker

2021-02-25 15:40:45
  • #6


Roughly, yes.
A thumb rule for all services is about 10% of the construction sum.

If you want more detailed knowledge: HOAI is a fee schedule, similarly complicated as the fee calculations for lawyers...
 

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