ᐅ House Building Planning Process! When Should You Schedule an Appointment with the Bank?

Zaba12 schrieb:

Let’s summarize:
- 4,000€ monthly income (is that monthly base salary, or does it include bonuses and holiday/Christmas pay? Only the actual monthly income counts for the loan amount).
- Equity consists of the plot of land plus 30,000€, totaling 80,000€. The bank does not consider any other amount unless it is declared as equity.
- From experience over the past two years, 2,000€ per square meter of living space is a realistic figure for the calculation.

That would be 270,000€ for the house and all construction-related costs. Let’s keep the 30,000€ ancillary construction costs as is. However, expenses like additional purchase costs (notary/land registry) are not included here.

So initially about 300,000€ without outdoor landscaping, garage/carport, painting, flooring, lighting, kitchen, furnishings, etc.

Move-in ready with everything finished, you’d probably be around 365,000€. That means 365,000€ minus 30,000€ results in a loan amount of 335,000€. That corresponds to a loan-to-value ratio of just over 90%. With this, you can calculate your monthly installment plus approximately 400€ in monthly house operating costs in any common mortgage calculator to estimate the overall housing expenses.

Thank you very much for your detailed information and advice!

The equity is monthly.
Christmas bonus has not been included yet. It’s about 900–1,000€.
My partner is a civil servant, so maybe there are some benefits. We’ll see.

The living area costs about 1,500€ per square meter (approx. 140 USD) times 135 sqm (1,452 sq ft). He already told us that.

zipfelklatsch schrieb:

Thank you very much for your detailed information and advice!

That is monthly savings.
Christmas bonus is not included yet. It’s about 900–1000 euros (approximately 950–1100 USD).
My girlfriend is a civil servant, so maybe there are some benefits. We’ll see.

The living area costs about 1500 euros (approximately 1600 USD) per square meter (11 square feet) times 135 square meters (1450 square feet). He already told us that.

Am I the one trying to sell you something or the general contractor? Are you someone who has already built a house or one of the many others who are giving you advice here so that you can have peace of mind financially about your project?

You probably overlooked or wanted to overlook this: a turnkey house construction offer can never be complete. It starts with drainage and groundwork, which can never be fully specified in advance—there are no flat rates for these—and it goes on with the number of sockets and heating outlets (electrical work), and so on...

And we’re not even talking about “I only want walls, windows, and doors because we have no other requirements.” I mean missing items you don’t recognize and the general contractor won’t tell you, because they want your contract!

If you can’t accept an additional 2,000 euros (approximately 2,100 USD), that’s not my problem. And even if the general contractor now quotes you 1500 euros (approximately 1600 USD) per square meter (11 square feet)—which was already difficult five years ago—in the end, during construction and after the house is completed, it won’t be like that.

You always come back with the same answers... “But the general contractor said/wrote such and such…”

Then you get posts like “Why do the groundwork costs 10,000 euros (approximately 10,700 USD) more than in the offer?” or “Why does drainage cost 3,000 euros (approximately 3,200 USD) more?” “Why do I have to dispose of 300 cubic meters (10,600 cubic feet) of excavated soil, which costs 8,000 euros (approximately 8,500 USD), although it wasn’t in the offer?” “Why does every additional socket cost 40 euros (approximately 43 USD) through the general contractor?” or “Why was the steel quantity in the offer only an estimate because there was no structural analysis or soil report yet,” and so on.

Zaba12 schrieb:

Am I the one trying to sell you something, or the general contractor? Are you the one who has already built, or one of the many others giving you advice here so you can have peace of mind and financial security regarding your project?

You probably overlooked or ignored this: a turnkey house building quote is never complete. It starts with drainage and civil engineering work (which can never be known in advance, and there are no fixed lump sums for this) and continues with the number of electrical outlets and heating points, and so on…

If you can’t accept the 2,000€ (about 2,000 dollars) difference, that’s not my problem. And even if the general contractor now suggests 1,500€ (about 1,500 dollars) per square meter (which was already difficult five years ago), in the end, during and after construction, it won’t be like that.

You always come up with the same answers… “but the general contractor said/wrote so and so…”

Then there are posts like “Why do the civil engineering works cost 10,000€ (about 10,000 dollars) more than quoted?” or “Why does the drainage cost 3,000€ (about 3,000 dollars) more?” “Why do I have to dispose of 300 cubic meters of excavated soil costing 8,000€ (about 8,000 dollars), but nothing was mentioned in the quote?” “Why does each additional electrical outlet cost 40€ (about 40 dollars) from the GC, etc.?”

You always talk about the GC??? Can someone please explain that to me?

I meant a government-subsidized loan with benefits. I only read about it; I don’t know if the terms are really that favorable.

How can I unsubscribe here? Do I have to contact the moderators?

This isn’t helping me much here, unfortunately.
I will gain my own personal experience.

Peace and out!

zipfelklatsch schrieb:

Doesn't help me much here, unfortunately.
I will have to gain my own personal experience.

I think that’s good!

Here is another person who only wants confirmation for questionable ideas but can’t handle any opposition.

zipfelklatsch schrieb:

That doesn’t help me much here, unfortunately.
I will have to gain my own personal experience.

The original question in the first post was: "When can I go to the bank?"
Several times the simple answer was: "Right now, to explore the credit limit."

I really don’t understand the problem of the thread creator. A lot was even demonstrated here with clear calculations.

zipfelklatsch schrieb:

Peace and out!

Yeah, do the same at the bank.

The original poster simply did not understand what was written. The thread is so long because it was meant to convey that the general contractor’s offer alone is not sufficient for the bank! They require a detailed breakdown of construction costs for all items. But if the original poster doesn’t even realize that he is not building with a developer :-p, the loan will be used up and the house will not stand as imagined in his head!

But he wants to gain the experience himself, and that is his right.