prisma17
2020-01-24 14:38:35
- #1
Hello everyone,
so far I have enjoyed reading here to get a feel for our construction/renovation project. Now our plans are slowly becoming more concrete and I would like to get your assessment.
Starting situation:
We live in a relatively small city in the East. Despite searching for a long time, we have not found an existing house that suits us and for which we can confidently arrange financing. Fortunately, my parents' house is only about 30km away, the connection to the city is good as it is located directly at the motorway interchange, and the house (for its age) is in relatively good condition. My mother and my grandmother currently live in the house (grandmother has a registered right of residence and is 89 years old). My mother offered me the house – she would continue to live there. She currently owns 75% of it. My sister and I each own 12.5% through inheritance.
The house has about 140 sqm of living space (there is still expansion potential, but I can hardly estimate the extent), the plot is about 1200 sqm. From the current layout, it is not possible to separate living areas for us and my mother (grandmother will not be further involved for now, as she is demented and I do not expect her to still live in the house until the plans are implemented). Furthermore, it would be problematic to make the house age-appropriate in any way.
Therefore, our plan is to build a second small house with about 70 sqm (bungalow) for my mother – the plot should be large enough for this. She can then calmly move out of the large house and we take over the large one and renovate or convert it according to our ideas.
We currently have an income of €5900 (special payments not included).
Distribution:
He (permanent contract) 3200
She (fixed-term until 12/20) 2500
+ child benefit 204€
Child two will arrive mid-year. My employment contract ends during that time. I don’t know how it will continue. However, my boss wants to keep me, so I am cautiously optimistic. The new contract would then also be permanent for me. Alternatively, I would have to look for something new. Unless we fall into a strong recession by 2021, I am optimistic about finding something new quickly there as well.
We currently pay €1000 rent and save at least €1000 every month. We want to budget a maximum of €2000 for housing (as an upper limit). We have equity of €60k and a share of farmland of similar value. The farmland will most likely be used in exchange with my sister. We want to keep the remaining equity as a buffer and not include it initially.
The existing house and plot should suffice as equity for the bank, right? How does a bank assess the value in this case? Does an appraiser come? What influence would my mother’s right of residence (and currently the grandmother’s) have on that? The house has always been passed on to the younger generation, and the last land value is apparently €17k (for tax calculation?!), which in no way corresponds to the current value.
Has anyone here ever built such a small house? Can I calculate about €2000/sqm for the preliminary planning or rather more? At the same time, the garden requires major reworking, since although a lot has been renovated on the house in the past, the garden was neglected…
So for part 1:
Small house for mom: 70 x 2000 = 140,000 + 10,000 buffer = 150k
Garden overhaul: max. 50k (the garden is terraced, the existing walls would have to be renewed or alternatively removed and then re-embanked or something similar. Stairs need to be newly laid, large trees felled, etc., so I rather calculate a bit more)
Thus, I assume about 200k for part 1. Do you consider that realistic? Would a bank also finance that with only one reliable income?
Then we would also tackle part 1 promptly. And delay part 2 renovation and conversion until we both are fully employed again.
For part 2, I would also calculate about 200k max. Assuming I keep the salary after 2021, is that well financeable for us?
How should we best finance this, or can the financing later be combined with part 2 into one financing?
Sorry for the long text, but I wanted to give as accurate information as possible.
Best regards
so far I have enjoyed reading here to get a feel for our construction/renovation project. Now our plans are slowly becoming more concrete and I would like to get your assessment.
Starting situation:
We live in a relatively small city in the East. Despite searching for a long time, we have not found an existing house that suits us and for which we can confidently arrange financing. Fortunately, my parents' house is only about 30km away, the connection to the city is good as it is located directly at the motorway interchange, and the house (for its age) is in relatively good condition. My mother and my grandmother currently live in the house (grandmother has a registered right of residence and is 89 years old). My mother offered me the house – she would continue to live there. She currently owns 75% of it. My sister and I each own 12.5% through inheritance.
The house has about 140 sqm of living space (there is still expansion potential, but I can hardly estimate the extent), the plot is about 1200 sqm. From the current layout, it is not possible to separate living areas for us and my mother (grandmother will not be further involved for now, as she is demented and I do not expect her to still live in the house until the plans are implemented). Furthermore, it would be problematic to make the house age-appropriate in any way.
Therefore, our plan is to build a second small house with about 70 sqm (bungalow) for my mother – the plot should be large enough for this. She can then calmly move out of the large house and we take over the large one and renovate or convert it according to our ideas.
We currently have an income of €5900 (special payments not included).
Distribution:
He (permanent contract) 3200
She (fixed-term until 12/20) 2500
+ child benefit 204€
Child two will arrive mid-year. My employment contract ends during that time. I don’t know how it will continue. However, my boss wants to keep me, so I am cautiously optimistic. The new contract would then also be permanent for me. Alternatively, I would have to look for something new. Unless we fall into a strong recession by 2021, I am optimistic about finding something new quickly there as well.
We currently pay €1000 rent and save at least €1000 every month. We want to budget a maximum of €2000 for housing (as an upper limit). We have equity of €60k and a share of farmland of similar value. The farmland will most likely be used in exchange with my sister. We want to keep the remaining equity as a buffer and not include it initially.
The existing house and plot should suffice as equity for the bank, right? How does a bank assess the value in this case? Does an appraiser come? What influence would my mother’s right of residence (and currently the grandmother’s) have on that? The house has always been passed on to the younger generation, and the last land value is apparently €17k (for tax calculation?!), which in no way corresponds to the current value.
Has anyone here ever built such a small house? Can I calculate about €2000/sqm for the preliminary planning or rather more? At the same time, the garden requires major reworking, since although a lot has been renovated on the house in the past, the garden was neglected…
So for part 1:
Small house for mom: 70 x 2000 = 140,000 + 10,000 buffer = 150k
Garden overhaul: max. 50k (the garden is terraced, the existing walls would have to be renewed or alternatively removed and then re-embanked or something similar. Stairs need to be newly laid, large trees felled, etc., so I rather calculate a bit more)
Thus, I assume about 200k for part 1. Do you consider that realistic? Would a bank also finance that with only one reliable income?
Then we would also tackle part 1 promptly. And delay part 2 renovation and conversion until we both are fully employed again.
For part 2, I would also calculate about 200k max. Assuming I keep the salary after 2021, is that well financeable for us?
How should we best finance this, or can the financing later be combined with part 2 into one financing?
Sorry for the long text, but I wanted to give as accurate information as possible.
Best regards