The first step has been taken today

Hello,

Then for your information, I just spoke again with our friends: Plot 1100 m2 - €58,000 including incidental costs

.... The answer was quite clear in this case, that with €20,000 equity we can easily get a construction loan for €220,000...

Sometimes I really wonder which movie I woke up in ....

Plot €58,000
less promised financing €220,000

remaining €162,000 - of which again €35,000 for the typical additional construction costs = €127,000 for the planned new build.

If you are talking about a finished shell, then the house building will work; everything else belongs to the realm of dreams ... even in the Bremen area :rolleyes:

Kind regards

Thanks for the answers - maybe it came across wrong, our friends built on this scale, we have already distanced ourselves from it after the first response here in the forum ;)

In the next few days, we will first talk to various developers, look at plots of land, etc. to get an idea of the price range our house including ancillary costs + buffer will be. We have a small advantage: Our father-in-law will do the two bathrooms including materials, as he works as an engineer at a large sanitary supplier.

As of today, I think we will save at least € 55,000 in equity, which we should actually reach relatively quickly with support from our parents.

If there is interest, I will of course be happy to post in between what we have taken away from the discussions and where we actually end up price-wise in the end.

We have refrained from special repayments; you will never get debts as cheap as now, so why make special repayments?

Well, that is unfortunately completely wrong. The lower the interest rates, the faster you should repay, meaning the more you should amortize. The sentence above is only true if you generate capital from the loan... for example with a photovoltaic system. But interest is interest, and interest has compound interest... And the longer you leave it, the more the house will cost in the end. Low interest rates give you the opportunity to repay the loan faster, because instead of 2% you can also amortize 3% with the same money.

If there is interest, I will of course be happy to post from time to time what we have taken away from the conversations and where we actually end up price-wise in the end

very gladly :)

@DerDa

So I don't think my attitude towards special repayments is completely wrong, otherwise we wouldn't be doing it. ;-) We have simply decided for ourselves that if there is money left over, we put it into the building savings contract. It's not as if we spend it elsewhere. And since the interest rates are so low, it doesn't hurt me to pay them. We only have a small later interest rate risk because our remaining loans after the fixed interest period are low. So we won't have any problems later either. And just by the way: Now I throw my savings into the loans every year, and then there may come a time that might be financially difficult, do you think the bank cares whether you have always properly made special repayments in the years before? No, they don't care... In addition, at 27 years old we are still relatively young, it doesn't bother us to pay off our loan for the next 30 years....

But you definitely have a flaw in your thinking. You probably pay about 3% interest on your loan and then put the excess money into a [Bausparer] with possibly 1% interest? Better to go for 2.7% on the [Tagesgeld] and keep it as a buffer for whatever! I'm not a financial genius, but I think you have the wrong plan there.

Well, there are supposedly people who believe the fairy tale of 7% returns.

Look at everything that is happening again right now. Millions of Germans are pushing their savings to the Royal Bank of Scotland. Lehman Brothers sends its regards.