Hello,
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?
B
boysetsfire24 Mar 2015 12:58Regarding financing, in Bavaria there is support available for young families through the Landesbodenkreditanstalt (LABO). You can inquire at your local district office and, if necessary, schedule an appointment.
The advantage is that you can receive partially interest-free or low-interest loans for the financing, as well as an additional grant of €5,000 for two children (including those not yet born).
The advantage is that you can receive partially interest-free or low-interest loans for the financing, as well as an additional grant of €5,000 for two children (including those not yet born).
I’d like to join the conversation!
We’re also planning to build, or possibly buy.
But I’m really wondering (since this is our “problem”) how a single income earner in a partnership can get a loan? Income, including child benefits and parental leave pay for one year, is fine, but don’t banks usually not accept that?!
Some good and professional advice has already been shared here. Maybe I could briefly get an overview too?
My husband earns €1,500 net. I’m an apprentice and have a total income of around €1,600 (salary, child benefits, maintenance payments, vocational training allowance). We already live in a house with my in-laws, so we don’t pay rent!
If we build, we will do a lot ourselves since we have electricians, roofers, heating, and plumbing experts in the family.
We have already found a few houses we like, but we have no savings or equity of our own. However, we could easily set aside €800-1,000 per month to contribute to the financing.
But... wouldn’t we never get a bank loan like this? We have two bank appointments on April 14th, but I would like to hear opinions from here first.
We’re also planning to build, or possibly buy.
But I’m really wondering (since this is our “problem”) how a single income earner in a partnership can get a loan? Income, including child benefits and parental leave pay for one year, is fine, but don’t banks usually not accept that?!
Some good and professional advice has already been shared here. Maybe I could briefly get an overview too?
My husband earns €1,500 net. I’m an apprentice and have a total income of around €1,600 (salary, child benefits, maintenance payments, vocational training allowance). We already live in a house with my in-laws, so we don’t pay rent!
If we build, we will do a lot ourselves since we have electricians, roofers, heating, and plumbing experts in the family.
We have already found a few houses we like, but we have no savings or equity of our own. However, we could easily set aside €800-1,000 per month to contribute to the financing.
But... wouldn’t we never get a bank loan like this? We have two bank appointments on April 14th, but I would like to hear opinions from here first.
EveundGerd2 Apr 2015 20:45Good evening Lissy,
what year of apprenticeship are you in? What profession are you training for? Is there a guarantee of employment after completing the apprenticeship?
How secure is your partner’s job?
1500.00 € net is not very much.
What exactly are you envisioning? Since you already have bank appointments, saving up for the next few years is probably no longer an option?
A bit more background information is definitely needed from you.
Best regards, Eve
what year of apprenticeship are you in? What profession are you training for? Is there a guarantee of employment after completing the apprenticeship?
How secure is your partner’s job?
1500.00 € net is not very much.
What exactly are you envisioning? Since you already have bank appointments, saving up for the next few years is probably no longer an option?
A bit more background information is definitely needed from you.
Best regards, Eve
B
Bauherren20142 Apr 2015 20:54LissyMV schrieb:
I’m really wondering now (since this is the “problem” we have) how a single-income partner can get a loan? Income, including child benefit and then parental allowance for one year, sounds good, but banks don’t accept that, do they?!If you earn enough, you can get a loan even as a single earner. Parental allowance is generally not recognized by banks as income since it stops completely after one or two years.
LissyMV schrieb:
My husband earns €1,500 net. I’m an apprentice and have around €1,600 total (salary, child benefit, maintenance, BAB = vocational training allowance) – we already live in a house with my in-laws and therefore have no rent to pay!That won’t be enough to buy a house that’s ready to live in, let alone a new build. Think about it yourself. You’re an apprentice – your training salary is probably low, not subject to garnishment, and ends after your apprenticeship. What if you don’t get hired afterward and don’t find a new job right away? Or if the job market in your region is difficult? Child benefit and maintenance for you or for your child (if you have one)? If for you, that will also end in a few years at the latest. BAB ends as well. So, in total, only your husband’s income remains—and that isn’t enough.
LissyMV schrieb:
We’ve already selected a few houses—but we don’t have any equity ourselves. However, we could comfortably set aside €800–1,000 per month or apply that towards financing.So why don’t you have any equity if you don’t pay rent and have over €3,000 available per month? Having no equity is problematic—you should at least be able to cover additional costs from your own savings.
LissyMV schrieb:
But… we would never get a bank loan like this, right?I’m sorry, but I believe that will indeed be the case.
One more thing on the side:
How old are you? That sounds quite young to me.
If that’s the case—this is not meant as criticism—but why not first see how life unfolds? What your jobs (both yours and your husband’s/partner’s) bring? Do you really want to commit so early in terms of location, career, and finances? First see how you manage financially and save equity. The more, the better. Also, look at how your salaries develop. In a few years, when you have finished your apprenticeship and have a permanent job, and perhaps your husband earns a bit more, things might look very different.
And why does it have to be your own house so early, just as you are starting out in life?
B
Bauherren20142 Apr 2015 20:58ypg schrieb:
I advised Lissy to create a separate thread.
Maybe wait for that one for further comments?!Sorry, I read this too late.
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