David8282
2022-11-16 16:21:11
- #1
Hello,
my partner and I are planning to purchase a terraced house for €200,000.
Equity: €45,000, from which we will pay incidental costs and renovate (€10,000).
We have a net income of €4,200.
Additionally, there is child benefit / maintenance of about €1,300, which is not continuous as the children are growing up and will soon move out in 4-9 years.
The terraced house is solid construction, 120m2.
92kWh energy certificate C
(Gas system 8 years old)
The house was built in 1980. Flat roof (heated), which will need to be replaced over time.
The previous owner patched it, which caused some minor moisture damage.
We want to save up for the roof.
Electrical system etc. are still in good condition.
Windows will easily last another 10 years, etc.
The financing would go through LBS.
Pre-financing loan €150,000
Nominal interest rate p.a. 4.19%
Effective annual interest 4.91%
€890 including €360 savings contribution
Term 15 years, after that €750 rate, nominal interest rate 1.15%
Parallel KFW homeowner loan €60,000
Effective annual interest 3.8%
After 10 years remaining debt €43,000
So monthly burden almost €1,200
My consideration is to renovate with €10,000 and keep €20,000 as a reserve to save for the roof.
Simultaneously save to fully repay the KfW loan after 10 years so that we will only have the LBS loan after 10 years. This will reduce the monthly payment from €1,200 to €900 and after 15 years to €750.
The checking account would still be covered with €15,000 for any expenses. My partner will soon need a new car (my vehicle is new, 2 years old).
Your opinion, please.
And yes, the interest rates are ....
Best regards
my partner and I are planning to purchase a terraced house for €200,000.
Equity: €45,000, from which we will pay incidental costs and renovate (€10,000).
We have a net income of €4,200.
Additionally, there is child benefit / maintenance of about €1,300, which is not continuous as the children are growing up and will soon move out in 4-9 years.
The terraced house is solid construction, 120m2.
92kWh energy certificate C
(Gas system 8 years old)
The house was built in 1980. Flat roof (heated), which will need to be replaced over time.
The previous owner patched it, which caused some minor moisture damage.
We want to save up for the roof.
Electrical system etc. are still in good condition.
Windows will easily last another 10 years, etc.
The financing would go through LBS.
Pre-financing loan €150,000
Nominal interest rate p.a. 4.19%
Effective annual interest 4.91%
€890 including €360 savings contribution
Term 15 years, after that €750 rate, nominal interest rate 1.15%
Parallel KFW homeowner loan €60,000
Effective annual interest 3.8%
After 10 years remaining debt €43,000
So monthly burden almost €1,200
My consideration is to renovate with €10,000 and keep €20,000 as a reserve to save for the roof.
Simultaneously save to fully repay the KfW loan after 10 years so that we will only have the LBS loan after 10 years. This will reduce the monthly payment from €1,200 to €900 and after 15 years to €750.
The checking account would still be covered with €15,000 for any expenses. My partner will soon need a new car (my vehicle is new, 2 years old).
Your opinion, please.
And yes, the interest rates are ....
Best regards