ᐅ We are planning to build in 2022; the planning phase is beginning.
Created on: 6 Jun 2020 09:33
Y
Ybias78
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:
Here is the plot:
Information about us:
General information about you:
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:
Other expenses:
General information about the property:
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.
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.
- 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 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)
- 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!
- 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)
- 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
- Vacation
- House
- Retirement
- Hobbies/gifts
- Other
- Total: €2,250
Other expenses:
- Alimony?
- Loans?
- €250 for the land.
- Other?
- Anything forgotten? Please add here!
- 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
- 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
- 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"
- Total costs:
- €400,000
- Deductible equity
- €0 (will be used for clearing the plot; €25,000).
- Financing amount
- €400,000
11ant schrieb:
Are you having trouble hearing today? The total amount will inevitably include estimated items, which is nothing new for the mortgage lender. Of course, you can reverse the order of selections and budgeting – but then the loan amount will also influence the tile size.
Keep dreaming, darling. The kitchen must be included in the financing: you need equity already allocated in the category “buffer without stress,” and the kitchen is not flexible because it only gets more expensive if you can’t install the final kitchen at move-in. A temporary solution means double installation, and you definitely don’t want “construction site doors” for the cabinets. Since you can only spend your equity once – that is, not simultaneously on both the kitchen and the buffer – I recommend including the kitchen in the calculation (generally, all items whose costs are known should be included). If, rarely for first-time builders, you have unused budget left at move-in, then either make a special repayment or put a swing in the garden. But excluding money from the financing (especially for an essential element) would be, to put it mildly, somewhat unwise. The buffer is clear. That’s why about €37,000 (around $40,000) is planned for upgrades. This already includes a buffer. There is also a roughly €10,000 (around $11,000) buffer in the incidental costs. As has often been said, the kitchen will not be financed. I’ll take a look.
And honestly, I don’t hear you calling me darling...
If I were in your position, I would keep the €2700 (about $3000) that you plan to use for extra repayments on the plot of land.
I found it very convenient to have a lot of equity so we didn’t have to visit the bank for every one of the 100 invoices...
By the way, we also planned with significant extra repayments because we want the monthly payment to be manageable by a single earner if necessary.
As far as I know, with Ing-Diba you can change the payment amount twice free of charge, right? That would have been the main reason we considered Ing-Diba.
I found it very convenient to have a lot of equity so we didn’t have to visit the bank for every one of the 100 invoices...
By the way, we also planned with significant extra repayments because we want the monthly payment to be manageable by a single earner if necessary.
As far as I know, with Ing-Diba you can change the payment amount twice free of charge, right? That would have been the main reason we considered Ing-Diba.
SteLa33 schrieb:
If I were you, I would keep the €2700 you planned to prepay on the plot.
I found it very convenient to have a lot of equity so we didn’t have to go to the bank for every single one of the 100 invoices...
By the way, we also planned with significant prepayments because we want the monthly installment to be affordable enough for one earner to cover if needed.
Isn’t it possible with Ing-Diba to change the installment twice free of charge? That would have been the main reason for considering Ing-Diba. Yes, you can. The prepayment option is also 5%, which is reasonable. Since this has been our main bank for about 10 years, it is our first choice.
A
Alessandro20 Aug 2020 13:20SteLa33 schrieb:
By the way, we also planned for a lot of extra repayments because we want the monthly payment to be manageable by just one earner in case of an emergency.
Does your monthly payment decrease when you make extra repayments?
Alessandro schrieb:
Does your installment decrease when you make an extra repayment? He means that you plan with a low installment and a high extra repayment. This way, only the loan term is shortened.
A
Alessandro20 Aug 2020 13:33But then the second part of the sentence doesn’t fit.
Or maybe I’m just misunderstanding.
Or maybe I’m just misunderstanding.