We are planning a single-family house - are our financing considerations correct?

Hello!

After several months of silently reading along, I am reaching out with our plan for a single-family house. We (29+29) plan to buy a plot of land next year (all-in 140k€) and then start planning/building (2022?). Rough estimate: 160sqm living space with air-to-water heat pump or pellet, basement (50sqm living space, rest utility basement), double garage, terrace, possibly photovoltaics or at least photovoltaics preparation. For the house, we are budgeting a maximum of 560k€, including kitchen and "basic furniture," so that we total around 700k€.

We have been labeling our income/expenses for years, net equity 1: 3400€ (13th salary extra), net equity 2: 1400€ (13th salary extra). Expenses are 2400€ including warm rent of 650€. We currently save 2400€ per month. Equity is available, 300k€ (100k€ self-saved, 200k€ through the sale of a self-founded company).

That means we would need to finance 400k€. We have been following the rate versus prepayment discussion for a while. With the current interest rates, we would prefer to finance with a smaller rate (1250€) over 30 years to have more flexibility. Above all, with moving into the house, two children are planned as soon as possible, meaning they will be financially dependent on us for at least 2/3 of the financing period. Besides, we have been saving since childhood and do not want to enslave ourselves for the next 20 years just because of a property, "only to be able to live again afterward" — who knows how much time you have... After parental leave, net equity 2 will be part-time. Despite the smaller rate, we are consistent enough for prepayment and want to do extra repayments every year so that we are done after a maximum of 30 years.

We look forward to your assessment: Do we have any major blunder somewhere? Would you approach it differently?

We wish you a reflective Christmas season!

Regards Lukas

You have 210 sqm of living space plus 30 sqm of basement space, plus a double garage, then photovoltaics ... I am at 500,000.
Plus outdoor facilities and incidental building costs, I am at a minimum of 560,000.
I would calculate 600,000 including kitchen and such, saves additional financing.

You have 210 sqm of living space

I understand it more as 160 sqm, of which 50 are in the living basement.

I understand it more as 160 sqm, of which 50 are in the residential basement.

It does not matter for the price disclosure where the developed living space is!

It does not matter for the price disclosure where the expanded living area is!

Yes, but 160 including 50 or 160 plus 50 does make a significant difference.

Yes, but 160 including 50 or 160 plus 50 already makes a significant difference.

:rolleyes: Yes, but your way of thinking is not comprehensible, because then per floor (except basement) there would be about 55/60 sqm living space and the basement would be larger than the other floors, namely over 80.