ᐅ We are planning to build in 2022; the planning phase is beginning.

Before I share the completed data, here are some details about our building project. We are still quite early in the process. About 2.5 years ago, we purchased a plot of land that we are currently paying off. The plot is located within the developed area of Fichtenwalde (about 50km (31 miles) south of Berlin) and is currently classified as forest. There are about 80 trees on the land. Converting it into a building plot is not a problem. However, there is a tree protection regulation, which means all trees must be replaced. The cost of felling the trees, including replanting and a financial deposit (in case the replacement trees do not survive), is around €20,000 (based on feedback from our neighbors who built last year).

We plan to start building the house at the beginning of 2022 and want to consult an architect by August 2020 to design the house and submit the building permit / planning permission application. While the building application is being processed, the land can then be converted, including tree removal. This will be paid for with the money we save from now until the new build. We don’t have any other equity. We moved in together around 10 years ago, during which time we had to pay off my student loans, buy two cars, etc. Our income has also increased over time.

We now need some help with the overall planning. As mentioned, our current plan is:

• Consult an architect and plan the house by August.
• Submit the building permit / planning permission application in October.
• Tree felling can take place by the end of February.
• In 2021, we will look for a (most likely) regional company to build the house (recommendations welcome).
• From June 2020 to December 2021, the saved money will be spent on:
• Architect fees, tree removal, paying off the land including a €2,750 special repayment. A new car for my wife (approx. €10,000) will also be purchased.
• Cheaper items should also be covered, such as surveying, soil report, etc.

What would be the next logical step after the trees have been felled? That’s the part we are missing. The planning after tree removal. What can we do before starting construction?

Here is the plot:

Information about us:

General information about you:

• Who are you?
• A family of three.
• How old are you?
• She is 38, he is 41, daughter: 8.
• Do you have children?
• Yes, a girl.
• Are more children planned?
• No others planned.
• What do you do professionally?
• She is a full-time teacher. He is a controlling manager for several hospitals (full-time).
• Are you employed, self-employed, retired, homemaker, etc.?
• Both employed.
• How many hours do you work?
• She works full-time with 27 teaching hours plus preparation and follow-up time. He works 40 hours.

Income and assets:

• What are your gross/net incomes?
• She: €2,820. He: €3,000 (tax class IV/IV). This includes about €400 in company pension contributions. Additionally, there are annual bonuses of about €3,000 (not included in net income).
• How much child benefit do you receive?
• €204.
• Other transfer payments like parental allowance, sick pay, etc.?
• None.
• How much equity do you have?
• Currently negligible (under €10,000).
• How much of that equity do you want to invest in the house project?
• All of it.

Expenses:
Expenses already included elsewhere can be omitted. This list is not exhaustive and can be extended or summarized. Please specify all costs monthly, even if they only occur annually!

Housing costs:

• Current basic rent (cold rent)
• €390
• Current total rent (warm rent)
• €567
• Electricity
• €72
• Gas
• None.
• Water, sewage, waste disposal, street cleaning
• Included in additional costs.
• Telephone, internet, mobile phone
• €85 (including Amazon Prime and Netflix)

Mobility costs (for two cars, one 4 years old, one 15 years old):

• Public transport monthly pass (also for children)
• None.
• Car loan (or savings rate for a new car)
• Currently none.
• Insurance
• €100 per month (one fully comprehensive, one partially comprehensive).
• Taxes
• €34
• Fuel
• €200
• Repairs
• €140
• Other
• Is there a second car, motorcycle, scooter? Please specify all costs again!

Insurance costs:

• Private health insurance (also supplementary health insurance, daily sickness allowance, etc.)
• Dental supplementary insurance: €37
• Liability insurance (including pets)
• €7
• Capital or term life insurance
• None
• Pension insurance (including company pension plans)
• Company pension contributions (already included in net income).
• Disability insurance
• None
• Accident insurance
• None
• Household contents insurance
• €7
• Legal expenses insurance
• €20
• Other insurance (e.g., travel insurance, funeral insurance)

Living expenses (about €2,250 planned monthly for these):

• Groceries
• Difficult to plan.
• Dining out
• Personal care/drugstore
• Pets (food, vet, medication, housing)
• Medication
• Clothing
• Furniture
• Childcare/school fees (including meals)
• After-school care €190 including meals
• Tutoring
• School supplies and books
• Club fees/gym
• Student association: €20
• Gym: €25
• Daughter’s music school: €66
• Babysitter
• Toys
• Cleaning
• TV/video/audio/CDs/DVDs
• Tickets (sports, cinema, concerts, etc.)
• Donations
• Student association: €15
• Other

Savings:

• Vacation
• House
• Retirement
• Hobbies/gifts
• Other
• Total: €2,250

Other expenses:

• Alimony?
• Loans?
• €250 for the land.
• Other?
• Anything forgotten? Please add here!

Summary of income and expenses:

• Total income: €6,024
• Total expenses: €3,769
• Balance: €2,255 (saved).
• Including cold rent and optional savings (e.g., savings rate for the house).

General information about the property:

• How large is the plot?
• 1,447 sqm (15,575 sq ft)
• What are its dimensions?
• 20 m (66 ft) road frontage x 72 m (236 ft)
• What is the land value?
• €120 per sqm
• New build, renovation / year built, house type?
• New build – L-shaped bungalow (we are still very early in planning)
• Garages?
• Depends on the budget.
• How big should the house be? (living area / usable area)
• About 140 sqm (1,507 sq ft)
• What is the market value of the land and house after completion?
• Land approx. €200,000 + house €350,000 = €550,000

Building or purchase costs:

• Land cost:
• Current outstanding debt €42,000
• Development costs
• Plot is fully developed.
• Acquisition incidental costs (notary, court, property transfer tax, realtor)
• Building or purchase costs (including architect, structural engineer):
• €300,000 budgeted.
• Renovation or restoration costs
• Additional building costs (e.g., utility connections, soil expert, construction electricity, etc.)
• Planned: €50,000
• Outdoor facilities/terrace, paths, landscaping, fences, etc.
• Depends on the total costs.
• Financing costs (fees or commitment interest)
• Total costs
• Remaining debt on the land + new build: Planned financing amount: €400,000

Other costs:

• Kitchen costs
• €10,000
• Furniture, lamps, decoration
• Mostly furniture will be kept and replaced gradually.
• Other "non-acquisition, incidental acquisition, construction, or additional building costs"

Cost summary:

• Total costs:
• €400,000
• Deductible equity
• €0 (will be used for clearing the plot; €25,000).
• Financing amount
• €400,000