We plan to build a house

Hello,

purely from the financing side you are 1A debtors. Civil servants, good net income, high equity capital that also fits the 500k purchase.

What no one will accept is a life plan (purely financial) from the birth of the children. You need private health insurance, daycare place, the wife usually only works 50% anymore.

Here you should possibly calculate a scenario. But I also suspect that it will work financially.

That is certainly a big problem. How much reserves should one calculate etc...

But purely from the financing side it should fit? Even if I calculate buffer for children?

Regards

Hello,

it is difficult to give you a tip on how much to set aside for a child. What does a child cost? One person showers them with gifts, another lets them grow up "normally."

You should simply create a timeline and see how the income situation will develop in the future (as of now). As civil servants, you will certainly receive child allowances and your salary will also automatically increase over the years. The nice thing about financing is that you have a fixed expense on the spending side in the form of interest + repayment.

I would advise you to have state funds calculated, KfW funds, and to choose financing with a fixed interest period of at least 15-20 years. At the current interest rate level, it makes no sense to commit to 10 years fixed.

Hello,

How much does a child cost?

Statistically speaking €550.00/month until the age of 18. In the first years until starting school actually less, since many things are still bought used, but after that it starts: new school supplies every half year, excursions, etc. And if later a child – like mine – chooses a long course of study, it gets really expensive until the diploma or doctorate; especially if studying away from home.

The Federal Statistical Office published the following values for 2013:

Average expenses per child
until the age of 18

Clothing (including diapers) - €9,101.80
Childcare - €3,368.59
Education - €3,525.00
Vehicles - €3,415.38
Toys (including gifts) - €8,156.34
Nutrition - €25,605.36
Housing (water, energy, rent) - €32,654.88
Furniture - €6,489.96
Electronics - €6,473.04
Pocket money - €2,496.00
Leisure/sports - €15,627.42

Total sum €116,913.77

From memory – I have 2 bundles of joy – these values are quite accurate; until reaching adulthood. After that it depends on which educational path is chosen.

Regards from the Rhineland

Hello,

it is difficult to give you a tip on setting aside an amount X for a child. What does a child cost? One spoils them with gifts, the other lets them grow up "normally".

You should simply create a timeline and see how the income situation will develop in the future (as of now). As civil servants, you will certainly receive child benefits and your salary will automatically increase over the years. The nice thing about financing is that you have a fixed expense on the expenditure side in the form of interest + principal repayment.

I would advise you to have state funds calculated, Kfw funds and choose a financing with a fixed term of at least 15-20 years. At the current interest rate level, it makes no sense to fix for 10 years.

Hi, Thank you for your comments.

Yes, there are child benefits. They are not high, but better than nothing. The salary increases slightly after certain periods. Larger jumps only occur with a promotion, which unfortunately is not predictable and can take time. Therefore, one would have to plan with the current actual salary including the "planable" time-dependent increases, and then incorporate salary increases from promotions through special repayments or directly "put into the kids".

Regards

Chris

In terms of style, we really like the modern half-timbered houses a la KD, HUF, Davinci, etc.

Very good choice ;)

The sticking point is probably the plot of land. You can’t place a house like that on a "standard new development area towel" of 400 m². If you constantly have to close the windows because the neighbor is basically sitting at the same table, such a house makes no sense at all. In many regions, large plots are simply not available and if they are, only at unrealistic prices. The house, with all the trimmings, will cost a little over 500,000. So with a reasonable plot, it probably won’t be doable for less than 650,000.

One more remark:
For living space with two planned children, you need at least 180 m² in these houses. The desired house type can’t be built fully optimized down to the last usage. That’s not the point of the exercise either. These houses live from the sense of space, which also means that you sacrifice some square meters for the overall work. Ultimately, it does not make much of a difference price-wise whether it’s 25 m² more or less. Besides, it seems there is still a good sponsor; otherwise, with 25 years old you can hardly have over €150,000 in equity.

Do you live in such or a similar house?

You are of course right. It will probably only become apparent whether it can/will be such a house when the "proper" planning starts. And then it will probably – as you say – largely depend on whether one finds a suitable plot of land that such a house needs, which one can then also afford.

And yes, you are right: a part of the equity capital is provided to us. However, a little over 100,000 + the building society savings have been saved by ourselves. We have been earning for 6 years ;)

Thanks for your explanations.

Regards