Single-family house with little equity, next!

Dear forum members,
I found this great forum while googling and wanted to get your opinion regarding a construction loan. I am currently going from bank to bank, but an exchange with "normal people" in a forum like this, who have a lot of experience, is worth something.
So: We (married, 1 child, second on the way :-)) are looking for a home and after a long search have found something. It should be a single-family house; now a developer is offering land + house (160m²) for 385 TEUR. It is basically turnkey, additional costs are the real estate transfer tax, notary, and a kitchen.
Regarding the finances, it looks like this: Monthly net income is between 4000-5500 €. Between means that since we are currently expecting a child, one salary will drop; so we assume 4000€.
The problem now is that we have hardly any equity, namely about 30 TEUR (plus another 10 TEUR as a fixed deposit, which we won’t touch for the next three years). This is because, as academics, we start working late, buy a car, repay student loans, etc. We don’t have wealthy parents either.
So we need a loan of 390 TEUR, and we have thought of a monthly rate of about 1600 € (i.e., about 1.5% repayment) plus regular special repayments. My two questions are:
1. Do we realistically have a chance of getting a loan?
2. Is the real estate transfer tax (we are in NRW) 5% on the entire purchase price, i.e., 385,000, or is only the land price considered?
Thanks in advance for the answers!

Hello,

It should be a single-family house, now a developer is offering land + house (160m²) for 385 TEUR. It is basically turnkey, additional costs are the property transfer tax, notary, and a kitchen.

Actually turnkey – meaning with public connections like sewer or gas connection? If not, good 35 TEUR more in incidental construction costs will be added, which you must consider in your financing.

Where do you want to build and with whom?

We also don’t have rich parents.

My son doesn’t either, he is currently paying back to the NRW.Bank :)

So we need a loan of 390 TEUR, we have planned a monthly rate of about €1600 (i.e. about 1.5% amortization) plus regular special repayments. My two questions are: 1. Do we have realistic chances for a loan?

Although I am not an expert in financing, I would say that nothing stands in the way of a positive decision. Nevertheless, besides the banks you “shop around”, you should also see an independent financier. He is liable for advisory errors and has the invaluable advantage that he is not tied to individual programs, as most banks are.

You registered here at the HBF coming from NRW; depending on where from, I can gladly recommend you an independent financing broker if you do not have appropriate contacts yourself.

2. Is the property transfer tax (in NRW) 5% on the total purchase price, i.e. 385,000, or is only the land price taken into account?

If you buy both the land and the new build from one source, 5% are due on both. If the developer mediates the land to you and there is no economic connection between the land seller and the developer, then you only have to pay on the land portion.

Kind regards

Construction expert has already written this. Make sure to have a precise list of what "Schlüsselfertig" means. Also, find out how large the property is, and what a property in a similar location would cost. Then you know what the house costs, and can estimate whether it is a good deal or not. Additional construction costs like earthworks, etc. can be very high, so inquire here. If your company tells you additional construction costs of around 15,000, add at least another 15,000 if you have to pay for the complete earthworks, sewer works, and connections separately. Unfortunately, low prices are often advertised, but in the end, only one person pays, the buyer.

First of all, thank you very much for your answers! I explicitly asked the gentleman to what extent additional construction costs such as electricity, water & telephone lines would still be incurred. His answer was: 385 TEUR, everything is included except for notary and property transfer tax. By the way, the construction is planned with the "Regio Baugesellschaft" in Krefeld. Regarding the financing, I have also contacted the financial service providers "Dr. Klein" and "Ing-Diba" (although it is a bank, they state that they have access to products from several banks) and am now waiting for a response...

Hello,

By the way, construction is supposed to be with the "Regio Baugesellschaft" in Krefeld.

I unfortunately don't know them; our financier is based in KR, I will ask him :)

Kind regards