ᐅ Where to start?

Hi

I’m new to the forum. We’re thinking about building a house but aren’t really sure where to start.

For example, how do you establish a realistic financial budget? What should you keep in mind?

We appreciate any tips and advice! :-)

Thank you for the detailed response. How can I get a rough idea of what financial range is appropriate? Are there any general rules of thumb? For example, common financing durations?

Can this be based on monthly income? I understand that this won’t result in an exact figure, but first and foremost, I would like to estimate what a realistic range might be. Thank you in advance.

Our prefabricated house with approximately 140 sqm (1,507 sq ft) of net living space will cost around 250,000, including some extras (wood-burning stove, ventilation system, and an additional bay window) and meeting the KfW 55 energy standard. However, this price does not include a basement, and the exterior landscaping is likely not covered either.

You won’t be able to get it done for less than 200,000, even with the smallest version of a prefabricated house. There are providers advertising turnkey homes at much lower prices, but I would look very carefully at those offers.

The loan will be financed with a high amount of personal equity and a monthly payment of about 900 USD for 20 years fixed interest at 3.5%. Including additional costs for the house, the total monthly cost will be approximately 1,200 USD.

However, this calculation is based on an initial repayment rate of 1%. This should be increased after no more than 5 years, or annual prepayments of 10,000 should be made, otherwise a costly follow-up financing will be likely after the 20 years.

Good evening,

Gentlehag schrieb:
How can I get a rough idea of the financial scope that fits?

Only by having financing discussions – every financing is unique in its own way and tailored to the individual’s needs and income situation; of course, the equity ratio is also crucial for the interest rate.

Kind regards