launy10
2020-12-23 23:15:48
- #1
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
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