S
sweettalker11 May 2017 08:45Hello everyone,
we are currently planning to possibly purchase a plot of land directly from the municipality and have a house built on it by a developer.
The plot is 440m² (4740 ft²). The price is 190€ per m² (square meter) (developed).
The price for the planned bungalow is 246,500€ fully finished (except for painting. The terrace, driveway, and path to the house are paved), through a very reputable developer (they have built many houses here and also three in our family).
However, we plan to reduce the originally planned living area from 118m² (1270 ft²) to around 100-105m² (1075-1130 ft²).
A little about us:
My husband and I are 27 and 26 years old (together for 9 years, married for almost two years), with a dog, do not want children, and both work in permanent, “relatively” secure jobs.
Together we earn a net income of 4200€ (plus Christmas and holiday bonuses) and have 25,000€ in equity.
I would simply like to hear your assessment.
We have already consulted two banks, which naturally told us that we can afford it.
I would simply like to hear your assessment.
The main issue is that we want to own property as soon as possible; the real estate situation here in our village is terrible (over 200 applicants competed for 40 plots during the draw for the plots).
Used properties or condominiums are only junk listed on real estate platforms, as everything else is sold off-market.
We feel capable of handling the project but suffer from the “typical” fear of life uncertainties, such as one of us losing our job, etc.
Greetings and thanks in advance!
we are currently planning to possibly purchase a plot of land directly from the municipality and have a house built on it by a developer.
The plot is 440m² (4740 ft²). The price is 190€ per m² (square meter) (developed).
The price for the planned bungalow is 246,500€ fully finished (except for painting. The terrace, driveway, and path to the house are paved), through a very reputable developer (they have built many houses here and also three in our family).
However, we plan to reduce the originally planned living area from 118m² (1270 ft²) to around 100-105m² (1075-1130 ft²).
A little about us:
My husband and I are 27 and 26 years old (together for 9 years, married for almost two years), with a dog, do not want children, and both work in permanent, “relatively” secure jobs.
Together we earn a net income of 4200€ (plus Christmas and holiday bonuses) and have 25,000€ in equity.
I would simply like to hear your assessment.
We have already consulted two banks, which naturally told us that we can afford it.
I would simply like to hear your assessment.
The main issue is that we want to own property as soon as possible; the real estate situation here in our village is terrible (over 200 applicants competed for 40 plots during the draw for the plots).
Used properties or condominiums are only junk listed on real estate platforms, as everything else is sold off-market.
We feel capable of handling the project but suffer from the “typical” fear of life uncertainties, such as one of us losing our job, etc.
Greetings and thanks in advance!
H
HilfeHilfe11 May 2017 08:54Hello and welcome,
So you need a loan of about 330k-350k?
That should be manageable with your income. If, unexpectedly, children come into the picture (I don’t know your current reasons), the financial and space situation could of course become more challenging.
You are both young, so you have time to repay. When my wife and I were your age, we were neither at this level financially nor in terms of real estate.
One question about the square meter figure: why was it reduced by 13 sqm (140 sq ft)?
How certain is your (lack of) desire to have children? Many women’s perspectives change after age 30. 😉 Just as a side note... And no, a man cannot influence that :p Unless both decide quickly otherwise.
So you need a loan of about 330k-350k?
That should be manageable with your income. If, unexpectedly, children come into the picture (I don’t know your current reasons), the financial and space situation could of course become more challenging.
You are both young, so you have time to repay. When my wife and I were your age, we were neither at this level financially nor in terms of real estate.
One question about the square meter figure: why was it reduced by 13 sqm (140 sq ft)?
How certain is your (lack of) desire to have children? Many women’s perspectives change after age 30. 😉 Just as a side note... And no, a man cannot influence that :p Unless both decide quickly otherwise.
At €190/m² (about $206 per sq yd), the land comes to €83,600 (approximately $90,800).
With the bungalow price included, that’s almost exactly €330,000 (around $358,500).
However, additional purchase-related costs for the land and many other expenses (such as ancillary construction costs and what you have already listed) are not included.
I’m estimating an extra €50,000 (about $54,400) for those.
Subtracting €25,000 (approximately $27,200) in equity, you’d be looking at a loan amount of around €355,000 (about $385,400).
At a 5% annual amortization rate, that would mean monthly payments of approximately €1,480 ($1,610).
On top of that, there are all the ongoing operating costs for the home, so you’re probably looking at total monthly expenses of around €1,900–2,000 ($2,070–2,180).
Without knowing you personally, I can imagine it could work since you’re not planning on having children. However, I do think that’s quite a stretch.
Please note that all these calculations are very rough and general, but I think they give a good indication of what to expect.
With the bungalow price included, that’s almost exactly €330,000 (around $358,500).
However, additional purchase-related costs for the land and many other expenses (such as ancillary construction costs and what you have already listed) are not included.
I’m estimating an extra €50,000 (about $54,400) for those.
Subtracting €25,000 (approximately $27,200) in equity, you’d be looking at a loan amount of around €355,000 (about $385,400).
At a 5% annual amortization rate, that would mean monthly payments of approximately €1,480 ($1,610).
On top of that, there are all the ongoing operating costs for the home, so you’re probably looking at total monthly expenses of around €1,900–2,000 ($2,070–2,180).
Without knowing you personally, I can imagine it could work since you’re not planning on having children. However, I do think that’s quite a stretch.
Please note that all these calculations are very rough and general, but I think they give a good indication of what to expect.
C
Caspar202011 May 2017 09:11sweettalker schrieb:
Our combined net income is 4200€ (plus Christmas and holiday bonuses), and we have 25,000€ in savings.What did the two banks tell you about the monthly expenses?
matte1987 schrieb:
At a 5% annual mortgage rate with an annuity loan, the monthly payment would be around 1,480€.
However, you also need to factor in all the operating costs for the house, so you would probably end up at about 1,900 to 2,000€ per month.sweettalker schrieb:
net 4200€Well, I wouldn’t exactly call that comfortable compared to the calculation from @matte1987.
@sweettalker: How much are you setting aside each month, or what is your current rent?
S
sweettalker11 May 2017 10:11Hello,
first of all, children probably won’t be part of our household, since neither of us leans in that direction. Additionally, even today, it is not easy for two men to have children...
The banks have mentioned a monthly payment of about 1300€ (approximately $1400).
We believe that, both financially and in terms of practicality, downsizing to around 100 square meters (about 1076 square feet) makes sense.
We are now estimating additional costs that would bring the total monthly burden to around 1600–1700€ (approximately $1720–1830).
Our current rent, including utilities, is 705€ (about $760). According to our budget planning, we could afford up to 1900€ (around $2040) per month. This amount also includes 200€ (about $215) monthly set aside for vacations and car savings.
first of all, children probably won’t be part of our household, since neither of us leans in that direction. Additionally, even today, it is not easy for two men to have children...
The banks have mentioned a monthly payment of about 1300€ (approximately $1400).
We believe that, both financially and in terms of practicality, downsizing to around 100 square meters (about 1076 square feet) makes sense.
We are now estimating additional costs that would bring the total monthly burden to around 1600–1700€ (approximately $1720–1830).
Our current rent, including utilities, is 705€ (about $760). According to our budget planning, we could afford up to 1900€ (around $2040) per month. This amount also includes 200€ (about $215) monthly set aside for vacations and car savings.
C
Caspar202011 May 2017 10:20sweettalker schrieb:
The banks mentioned a monthly payment of about 1300€.What does your rough cost breakdown look like? From the original post, we only see the price for the bungalow. But there are additional costs like purchase-related fees, painting work, non-tiled flooring?, garage?, kitchen, and so on.
It’s not really clear. Or are you both clear about what the project will ultimately cost?