ᐅ We are planning to build in 2022; the planning phase is beginning.
Created on: 6 Jun 2020 09:33
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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
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nordanney9 Jun 2020 14:38Ybias78 schrieb:
I intend to use special repayments to keep the installment as "low" as possible.Then you better make an effort. From my own experience, I can tell you that the proportion of people who actually make their special repayments is in the low single-digit percentage range. There is always something you want or actually need when it comes to the house. Besides, in our consumer society, there are plenty of attractive offers for "things."nordanney schrieb:
Then make an effort. From my own experience, I can tell you that the number of people who actually make their special repayments is in the mid-single-digit percentage range. When it comes to a house, there is always something you want or really need. And besides, many attractive purchase offers for "things" await in the wide world of our consumer society.I am very well aware of that. But we did the same with our last loan. Bought a car for 33,000 € and paid it off within one year. I understand that the extra payment may not happen in the first or second year because you still want or have to invest in the house.
Brief update. We had a financing meeting yesterday. The amount the bank approves (a generally applicable formula) is net income * 108. So just over €650,000 (about $680,000). The following calculation was made for a Kampa house. Details will still be discussed with the Kampa representative:
- €420,000 (about $440,000) house (€3,000 / m² (about $280 / ft²); KfW 40plus including a €10,000 (about $10,500) voucher for extras and a kitchen worth €13,800 (about $14,500)). Complete package including painting, flooring, etc.
- €30,000 (about $31,500) additional construction costs
- €15,000 (about $16,000) landscaping
- €42,500 (about $44,500) remaining mortgage on the land
- €20,000 (about $21,000) tree removal and replacement
- €5,000 (about $5,300) for an external construction supervisor (including the €4,000 (about $4,200) KfW subsidy).
Total: €532,500 (about $558,000)
The building plot is counted as equity minus the remaining mortgage of around €130,000 (about $136,000), resulting in about 79% financing.
The monthly payment would be around €1,600 (about $1,675) over 30-35 years. The plan is to repay the KfW loan (including the €30,000 (about $31,500) subsidy) within 10 years (with an annual savings deposit of about €5,000 (about $5,250)). After 10 years, the saved amount will be added to the bank loan payment. This leads to a financing period of approximately 25 years.
Advantage of the KfW40plus house: according to Kampa, ancillary costs are between €0.70 and €1 per m² (about $0.07 to $0.09 per ft²). However, for 140 m² (about 1,500 ft²), I’m estimating closer to €200 (about $210) total, so roughly €1.50 per m² (about $0.14 per ft²).
This is the first offer and I clearly told both Kampa and the financier that I will compare. €3,000 / m² (about $280 / ft²) seems quite high to me.
We’ll see.
- €420,000 (about $440,000) house (€3,000 / m² (about $280 / ft²); KfW 40plus including a €10,000 (about $10,500) voucher for extras and a kitchen worth €13,800 (about $14,500)). Complete package including painting, flooring, etc.
- €30,000 (about $31,500) additional construction costs
- €15,000 (about $16,000) landscaping
- €42,500 (about $44,500) remaining mortgage on the land
- €20,000 (about $21,000) tree removal and replacement
- €5,000 (about $5,300) for an external construction supervisor (including the €4,000 (about $4,200) KfW subsidy).
Total: €532,500 (about $558,000)
The building plot is counted as equity minus the remaining mortgage of around €130,000 (about $136,000), resulting in about 79% financing.
The monthly payment would be around €1,600 (about $1,675) over 30-35 years. The plan is to repay the KfW loan (including the €30,000 (about $31,500) subsidy) within 10 years (with an annual savings deposit of about €5,000 (about $5,250)). After 10 years, the saved amount will be added to the bank loan payment. This leads to a financing period of approximately 25 years.
Advantage of the KfW40plus house: according to Kampa, ancillary costs are between €0.70 and €1 per m² (about $0.07 to $0.09 per ft²). However, for 140 m² (about 1,500 ft²), I’m estimating closer to €200 (about $210) total, so roughly €1.50 per m² (about $0.14 per ft²).
This is the first offer and I clearly told both Kampa and the financier that I will compare. €3,000 / m² (about $280 / ft²) seems quite high to me.
We’ll see.
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nordanney10 Jun 2020 08:30Ybias78 schrieb:
This is the first provider, and I have clearly told Kampa and the financier that I will, of course, be comparing offers. €3,000 per square meter (approx. $280 per square foot) seems quite high to me. You can take a look at the current Kampa thread. The price is reasonable (for Kampa). You also get 40-plus and a good baseline equipment from the factory.
nordanney schrieb:
You can take a look at the current Kampa thread. The price is reasonable (for Kampa). You also get 40-plus and a factory-fitted good standard. I will review it after the meeting with the representative and more detailed planning. I will compare it with other general contractors as well. Of course, I will consider not only the price but also the performance. I will keep you updated.
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BackSteinGotik12 Jun 2020 17:04Ybias78 schrieb:
The monthly payment would be about €1,600 for 30–35 years. The plan is to pay off the KfW loan (including a €30,000 grant) within 10 years (savings of about €5,000 per year). Why such a long loan term? Finishing in 25 years before retirement could also be an option. Or do you have an interest rate fixed for that long?
For the KfW loan, are you then paying nearly €1,000 per month? How will your annuity change after 10 years? The €1,600 already included a repayment component for the KfW loan, right?