ᐅ KfW40, Funding Program 300 "Low-Income Households"

Hello,

this thread is for those readers who, like us, often feel a bit lost here.

We are about to sign a contract for building a house to KfW 40 standard with a local general contractor. Financing through KfW and ISB.

A brief introduction about us

• Who are you? H. and M.
• How old are you? 33 and 30
• Any children? One boy, turning one next week
• Are more children planned? None due to the house build
• What do you do for work? H: CNC machinist, M: administrative clerk
• Are you employed, self-employed, retired, homemaker, etc.? Employed
• How many hours do you work? H: 40 plus a part-time job twice a week for 2 hours each, M: 16 hours (part-time on parental leave)

Income and assets situation:

• What income do you have (gross/net)? H: 3258/2312 plus part-time job about 250 €; M: 1282/1048
• How much child benefit do you receive? 250 €
• Other benefits like parental allowance, sick pay, etc.?
• How much equity do you have? 130,000
• How much of that equity do you plan to invest in the house project? 100,000

Expenses:

• Current cold rent (rent excluding utilities) 450 €
• Current warm rent (rent including utilities) 550 €
• Electricity 75 €
• Phone, internet, mobile 80 €

Mobility costs: for 2 cars total

• Insurance 96 €
• Taxes 26 €
• Fuel 210 €

Insurance costs:

• Liability insurance 6.60 €
• Capital or term life insurance 13 €
• Pension insurance (including Riester, Rürup, etc.) 100 €
• Disability insurance 126 €
• Accident insurance 45 €
• Household contents insurance 4 €
• Union fees 33 €

Living expenses:

• Groceries 500 €
• Eating out 0
• Personal care/drugstore 40 €
• Clothing 20 €
• Cleaning 5 €

Summary of income and expenses:

• Total income 3860
• Total expenses 1899.6
• Balance 1961
• of which cold rent 450

General information about the property:

• How large is the plot? 663 sqm (7135 sq ft)
• Dimensions? 24 x 27.5 m (79 x 90 ft)
• Land value? 65 € per sqm (approximately 6 per sq ft)
• New build, existing house (year built), type of house? New build, detached house, gable roof, KfW 40, 1.5 storeys
• Garages? Single garage
• Size of the house? (Living area / usable area) Living area 129 sqm (1390 sq ft), usable area 143 sqm (1540 sq ft) plus 32 sqm (344 sq ft) garage
• Market value of land and house after completion? 503,000 €

Construction or purchase costs:

• Land costs 43,095 €
• Additional acquisition costs (notary, court, property transfer tax, agent) 2400 €
• Construction or purchase costs (including architect, structural engineer) 386,000 €
• Construction ancillary costs (e.g., utility connections, soil expert, construction power, etc.) 5,000 €
• Outdoor facilities/terrace, paths, garden design, fences, etc. 10,000 €
• Total costs 446,495 €

Other costs:

• Kitchen costs 15,000 €
• Photovoltaic system 12,000 € (6 kW with 6 kW battery storage)
• Energy consultant 5,325 €
• Garage in owner’s construction 17,500 €
• Front door 4,500 €

Cost summary:

• Total costs 500,820 €
• Deductible equity 145,495 €
• Financing amount 355,525 €

Necessary loan details:

• Loan amount 170,000 € KfW, 175,000 € ISB LM
• Loan type (e.g., annuity loan, bullet loan, etc.) annuity loan
• Interest rate (p.a. nominal, otherwise effective) 0.53 % KfW, 3.4 % ISB
• Fixed interest period 10 years KfW, until full repayment ISB
• Estimated total term until full repayment September 30, 2052
• Initial repayment rate KfW 2.77 %, ISB 1.8 %
• Monthly payment KfW 469.03 €, ISB 758.33 €, total: 1,226.06 €
• Are prepayments allowed? (Please state amount) ISB 10% per year

Let the show begin. Looking forward to your feedback. I thought it might be interesting since some questions of this kind have come up recently.

HausNummer 9 schrieb:

Additional construction costs (e.g., utility connections, soil surveyor, temporary construction power, etc.) 5,000

Did you perhaps miss a zero there? Currently, the municipal water connection in Lower Saxony is around 2,500 euros without excavation work, electricity is close to 5,000 euros (also without excavation). Temporary construction power easily costs four figures, and the soil surveyor charged 1,200 for three boreholes. That doesn’t even include fiber optic installation, site surveying, sewage connection, or several other fees. That item definitely needs a much higher budget; others can give you more precise figures... It just caught my eye because we recently reviewed these costs. Typical additional construction costs also include excavation. Is your house price quoted from the finished foundation slab? If so, you can easily add 25,000 more.

Why is the net available equity at the end 145,000 when you plan to contribute only 100,000 of the 130,000 mentioned above?

Does the plot have a slope?

Do you have a contingency buffer for unforeseen costs or upgrades?

Follow along, are you planning a basement?

HausNummer 9 schrieb:

This thread is for those readers who often feel as lost here as we do.

Why is that? – Actually, there is something for everyone here, even for lurkers. EH40 and low-income earners is a combination that can work, not least thanks to the magic of “funding programs.” Low-income and homeownership can indeed be compatible if one is willing to accept a needs-based building standard, including size “expectations.” However, EH40 – in times of a building energy law standard close to EH55 – is still “avant-garde,” a goal that in my youth in the political youth organization would have been called “eco-social”; in other words, something that low-income earners might reasonably see as the domain of “more affluent” groups. If you feel called to this, I am again surprised by the standalone single-family house since at least a semi-detached house would be more logical. Also, it seems to me …

HausNummer 9 schrieb:

current cold rent 450 € / current warm rent 550 € [...] living area 129 sqm (1390 sq ft) usable area 143 sqm (1540 sq ft) plus 32 sqm (345 sq ft) garage

… even though the area breakdown is not completely clear to me, with a current cold-to-warm rent difference of EUR 100 per month, it looks like a significant increase in per-person living space is being aimed for, so not exactly “building the planet’s future based on self-restraint” (?); so I would say: 110 sqm (1184 sq ft) building energy law standard might make a bigger impact than 140 sqm (1507 sq ft) EH40 …

HausNummer 9 schrieb:

Are children planned? none further due to house building

… and wouldn’t it make more sense to have another future pension contributor – a vegan one, of course (?)

HausNummer 9 schrieb:

KfW40 standard with local general contractor

I always appreciate a local general contractor – however, the wood builders tend to be better with EH40, while the recommended local general contractors are usually masonry builders.

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https://www.linkedin.com/company/bauen-jetzt/

HausNummer 9 schrieb:

Hello,

this thread is for those readers who, like us, often feel a bit lost here.

We are about to sign the contract for a house build to KfW 40 standard with a local general contractor, financed through KfW and ISB.

A little about us

• Who are you? H. and M.
• How old are you? 33 and 30
• Do you have children? 1 boy, turning one next week
• Are more children planned? No, due to the house build
• What do you do for work? H is a machining mechanic, M administrative employee
• Are you employed, self-employed, retired, homemaker, etc.? Employed
• How many hours do you work? H: 40 plus two times a week a 2-hour side job, M: 16 hours (part-time on parental leave)

Income and assets situation:

• What income do you have (gross/net)? H: 3,258/2,312 plus side job approx. 250 € (approx. $270), M: 1,282 / 1,048
• How much child benefit do you receive? 250 € (approx. $270)
• Other transfer payments like parental allowance, sickness benefits, etc.?
• How much equity do you have? 130,000 €
• How much of that equity do you want to invest in the house project? 100,000 €

Expenses situation:


Housing costs:

• Current basic rent 450 € (approx. $485)
• Current total rent 550 € (approx. $590)
• Electricity 75 € (approx. $80)
• Telephone, Internet, Mobile 80 € (approx. $85)

Mobility costs:
for 2 cars total

• Insurance 96 € (approx. $104)
• Taxes 26 € (approx. $28)
• Fuel 210 € (approx. $226)

Insurance costs:

• Liability insurance 6.60 € (approx. $7)
• Capital or term life insurance 13 € (approx. $14)
• Pension insurance (including Riester, Rürup, etc.) 100 € (approx. $108)
• Disability insurance 126 € (approx. $136)
• Accident insurance 45 € (approx. $49)
• Household contents insurance 4 € (approx. $4.30)
• Trade union fees 33 € (approx. $36)

Living costs:

• Groceries 500 € (approx. $540)
• Restaurants 0
• Personal care/drugstore 40 € (approx. $43)
• Clothing 20 € (approx. $22)
• Cleaning 5 € (approx. $5.40)

Income and expense totals:

• Total income 3,860 €
• Total expenses 1,899.60 €
• Balance 1,961 €
• of which basic rent 450 € (approx. $485)

General information about the property:

• How large is the plot? 663 sqm (approx. 7,136 sq ft)
• What are its dimensions? 24 x 27.5 m (approx. 79 x 90 ft)
• What is the land value per sqm? 65 € (approx. $70) per sqm
• New build or existing (year built), house type? New build, detached house, gable roof, KfW 40 standard, 1.5 storeys
• Garage? Single garage
• How large is the house? (living space / usable space) Living area 129 sqm (approx. 1,389 sq ft), usable area 143 sqm (approx. 1,539 sq ft) plus 32 sqm (approx. 344 sq ft) garage
• What is the market value of the plot and house after completion? 503,000 €

Construction or purchase costs:

• Plot costs 43,095 €
• Additional acquisition costs (notary, court fees, property transfer tax, realtor) 2,400 €
• Construction or purchase costs (including architect, structural engineer) 386,000 €
• Additional construction expenses (e.g. utility connections, soil surveyor, temporary electricity, etc.) 5,000 €
• Exterior works / terrace, paths, landscaping, fences etc. 10,000 €
• Total costs 446,495 €

Other costs:

• Kitchen costs 15,000 €
• Photovoltaic system 12,000 € 6 kW with 6 kW storage
• Energy consultant 5,325 €
• Garage built by ourselves 17,500 €
• Front door 4,500 €

Cost breakdown:

• Total costs 500,820 €
• Deductible equity 145,495 €
• Financing amount 355,525 €

Necessary loan details:

• Loan amount 170,000 € KfW, 175,000 € ISB loan
• Loan type (e.g. annuity loan, bullet loan, etc.) annuity loan
• Interest rate (nominal p.a., effective if stated) 0.53% KfW, 3.4% ISB
• Fixed interest period 10 years KfW until full repayment ISB
• Estimated total term until full repayment September 30, 2052
• Initial repayment rate KfW 2.77%, ISB 1.8%
• Monthly payment KfW 469.03 €, ISB 758.33 €, total: 1,226.06 €
• Are special repayments allowed? (Please specify amount) ISB 10% p.a.

Let the show begin. Curious to hear your thoughts. I just thought it might be interesting because a few questions have come up recently.

-LotteS- schrieb:

Did you miss a zero there? The connection fee from the local utility for water currently is about 2,500 € (approx. $2,700) in Lower Saxony without earthworks, electricity about 5,000 € (approx. $5,400) also without earthworks. Temporary construction power easily four-digit, soil surveyor cost for three drills was 1,200 €. Then there’s no fiber optic yet, no surveying, no sewage connection, no three or so additional fees paid, etc. You definitely need to add much more to that item; others can give you concrete figures… It just caught my eye because we looked at prices recently. Typical additional construction costs also include earthworks. Is your house offer from groundwork/foundation stage? If yes, you can easily add 25,000 € (approx. $27,000) or more…

Why is the deductible equity at the end 145,000 € when above you say you only want to invest 100,000 € of 130,000 €?

Does the plot have a slope?

Do you have a buffer for unforeseen costs or upgrades?

Hello,

thank you for your reply!

These are the costs quoted to us by the general contractor. The construction cost offer includes earthworks, foundation slab, soil survey, etc. So the only additional costs left were electricity and water connection.

The deductible equity includes the plot plus ancillary costs because this was already paid in cash.

Best regards

hauskauf1987 schrieb:

Following your discussion, are you planning to have a basement?

We have not planned a basement.