H
Haus_Traum23 Mar 2015 14:17Hello,
We are a soon-to-be family of four (29, 27, 2, and expected in August 2015) and since a new residential development is currently planned in our village, we are wondering whether to take the step now or save for a few more years...
At the moment, we pay 550€ cold rent and save 700€ monthly in a savings account.
My husband is the sole earner as I am currently on parental leave and our second child is on the way. His salary is expected to increase well over the next few years since he has only four years of professional experience after university.
So far, we have been able to save 35,000€.
The building plot would cost around 80,000€ (including additional fees).
We plan to build about 150m2 (1,615 sq ft) with a basement and a double garage. What kind of costs should we expect?
Because of a two-year building obligation, we can’t first pay off the plot calmly; we would need to arrange the full financing now and start construction next year.
What do you think about this?
We are a soon-to-be family of four (29, 27, 2, and expected in August 2015) and since a new residential development is currently planned in our village, we are wondering whether to take the step now or save for a few more years...
At the moment, we pay 550€ cold rent and save 700€ monthly in a savings account.
My husband is the sole earner as I am currently on parental leave and our second child is on the way. His salary is expected to increase well over the next few years since he has only four years of professional experience after university.
So far, we have been able to save 35,000€.
The building plot would cost around 80,000€ (including additional fees).
We plan to build about 150m2 (1,615 sq ft) with a basement and a double garage. What kind of costs should we expect?
Because of a two-year building obligation, we can’t first pay off the plot calmly; we would need to arrange the full financing now and start construction next year.
What do you think about this?
D
Doc.Schnaggls23 Mar 2015 15:13Hello,
well, it primarily depends on your household income available.
As a rough guideline, you can calculate about EUR 1,500.00 per square meter of living space – that would be around EUR 225,000 for 150 m² (1,615 sq ft) – however, this does not include painting and flooring work yet.
The basement cost strongly depends on whether waterproofing is required and if it is intended for living purposes. You can estimate between EUR 30,000 and EUR 50,000.
I estimate the double garage (depending on the features) at about EUR 10,000 to EUR 18,000.
Then there are additional building-related costs of about EUR 40,000.
Including the land, that brings us to between EUR 385,000 and EUR 413,000.
After deducting equity of EUR 35,000, the amount to be financed remains EUR 350,000 to EUR 378,000.
As another rough guideline, you can expect a loan repayment of EUR 500.00 per EUR 100,000 loan amount.
This would mean a monthly installment of about EUR 1,750 to EUR 1,890 based on the values mentioned above.
This is somewhat higher than your current spending (EUR 1,250), but it should be calculated individually for your situation anyway.
Best regards,
Dirk
well, it primarily depends on your household income available.
As a rough guideline, you can calculate about EUR 1,500.00 per square meter of living space – that would be around EUR 225,000 for 150 m² (1,615 sq ft) – however, this does not include painting and flooring work yet.
The basement cost strongly depends on whether waterproofing is required and if it is intended for living purposes. You can estimate between EUR 30,000 and EUR 50,000.
I estimate the double garage (depending on the features) at about EUR 10,000 to EUR 18,000.
Then there are additional building-related costs of about EUR 40,000.
Including the land, that brings us to between EUR 385,000 and EUR 413,000.
After deducting equity of EUR 35,000, the amount to be financed remains EUR 350,000 to EUR 378,000.
As another rough guideline, you can expect a loan repayment of EUR 500.00 per EUR 100,000 loan amount.
This would mean a monthly installment of about EUR 1,750 to EUR 1,890 based on the values mentioned above.
This is somewhat higher than your current spending (EUR 1,250), but it should be calculated individually for your situation anyway.
Best regards,
Dirk
Hello,
I believe some important information is still missing for a well-informed answer, such as where you plan to build, your income level, and your current expenses.
Also, more details about the features of your desired property would be helpful, for example, electric shutters, bay windows, whether furniture should be included in the financing, and so on.
Maybe you could visit a model home park near you to get a better sense of the size, layout, and features of your ideal house.
Best regards
I believe some important information is still missing for a well-informed answer, such as where you plan to build, your income level, and your current expenses.
Also, more details about the features of your desired property would be helpful, for example, electric shutters, bay windows, whether furniture should be included in the financing, and so on.
Maybe you could visit a model home park near you to get a better sense of the size, layout, and features of your ideal house.
Best regards
H
Haus_Traum23 Mar 2015 17:10Thank you in advance for your answers!
Well, we currently have a net income of €2,900 (from August plus child benefit for a second child), but that doesn’t really matter since I have been keeping a detailed household budget for two years now, and at the moment we can only save €700 per month (and we don’t live a luxury lifestyle). There’s simply nothing left at the end of the month.
So, from the €1,250 (+€184) we would have to cover the loan and new insurance costs… everything that comes later through salary raises or when I return to work would have to be used as extra repayments.
Of course, the wish is even stronger since we already have children and the residential development is currently being planned!
Since we are still young, we could pay off the loan over 25 or 30 years if the extra repayments don’t work out—it’s hard to tell.
As I said, we don’t need many extras in the house construction; of course, it will depend on what can be financed with the loan amount. The kitchen should be included in the financing, maybe one or two pieces of furniture as well, but basically everything else is already there.
The decision is very difficult for us since normally you only build a house once…
Well, we currently have a net income of €2,900 (from August plus child benefit for a second child), but that doesn’t really matter since I have been keeping a detailed household budget for two years now, and at the moment we can only save €700 per month (and we don’t live a luxury lifestyle). There’s simply nothing left at the end of the month.
So, from the €1,250 (+€184) we would have to cover the loan and new insurance costs… everything that comes later through salary raises or when I return to work would have to be used as extra repayments.
Of course, the wish is even stronger since we already have children and the residential development is currently being planned!
Since we are still young, we could pay off the loan over 25 or 30 years if the extra repayments don’t work out—it’s hard to tell.
As I said, we don’t need many extras in the house construction; of course, it will depend on what can be financed with the loan amount. The kitchen should be included in the financing, maybe one or two pieces of furniture as well, but basically everything else is already there.
The decision is very difficult for us since normally you only build a house once…
B
backbone2323 Mar 2015 18:13In my opinion, you cannot afford this.
However, I wouldn’t worry too much about this housing development.
However, I wouldn’t worry too much about this housing development.
You shouldn’t let anyone talk you out of your dream home. It’s best to visit a local construction company for advice, as prices can vary significantly depending on the region. Also, the 500€ per 100,000€ is not necessarily fixed. The mortgage example given assumed 6% (probably 4% principal repayment and 2% interest). With this, you pay off the loan faster, around 20 years, but your monthly payments are higher. If you calculate with 2% interest and 2% principal repayment, the monthly payment is about 335€ per 100,000€, which means it will take a bit longer to repay, but in your case, with a monthly payment of 1,250€ for 350,000€, this would work out. So, first I would recommend going to the bank, getting a calculation of what you can afford, and then consulting a builder to see what kind of house you can build for that amount.