Hello home builders,
We (27 and 28) are considering building a single-family house. We originally wanted a new condominium, but realistically, that’s not an option due to prices in the city and our “pet problem” (location, layout, price, limited to the ground floor). Then, through a private offer, we came across a plot of land in a sought-after new development area (not in the city) and started thinking about it.
Of course, we feel like this is a bit overwhelming — I have been in my job for two years, and my partner a bit longer.
Our financing plan would look like this:
House €230,000 + land €50,000 + earthworks, slope stabilization, and additional costs €60,000 = at least €350,000
Current equity combined €120,000, we want to keep a €20,000 buffer, so €100,000
Loan of €250,000 with various terms (KfW, annuity loan, and a home savings contract loan which can run up to 20 years if necessary). My partner also has two ongoing home savings contracts that will bring in another €100,000 in 10 years and could be used for repayment.
Current combined income is about €5,200, both full-time, with contractual salary increases. Currently, each of us saves €1,500 per month plus €500 rent.
It actually sounds like something we could manage. Especially with the low interest rates tempting us, and at some point we want a house, that’s clear.
Point #1: Children — we currently earn almost equal amounts, so I really can’t afford to take a long leave. How have you dealt with that? Do you calculate only with one income? With the 10% special repayment option, you can pay quite a bit extra towards the monthly rate.
Point #2: What happens if we separate? My partner would have to carry the house alone. Have you contractually fixed such contingencies in advance?
Point #3: Does it make sense to design the floor plan so rooms can be partitioned later, which we don’t need right now? Or is that disproportionately expensive?
Thank you for any kind of responses and ideas!
We (27 and 28) are considering building a single-family house. We originally wanted a new condominium, but realistically, that’s not an option due to prices in the city and our “pet problem” (location, layout, price, limited to the ground floor). Then, through a private offer, we came across a plot of land in a sought-after new development area (not in the city) and started thinking about it.
Of course, we feel like this is a bit overwhelming — I have been in my job for two years, and my partner a bit longer.
Our financing plan would look like this:
House €230,000 + land €50,000 + earthworks, slope stabilization, and additional costs €60,000 = at least €350,000
Current equity combined €120,000, we want to keep a €20,000 buffer, so €100,000
Loan of €250,000 with various terms (KfW, annuity loan, and a home savings contract loan which can run up to 20 years if necessary). My partner also has two ongoing home savings contracts that will bring in another €100,000 in 10 years and could be used for repayment.
Current combined income is about €5,200, both full-time, with contractual salary increases. Currently, each of us saves €1,500 per month plus €500 rent.
It actually sounds like something we could manage. Especially with the low interest rates tempting us, and at some point we want a house, that’s clear.
Point #1: Children — we currently earn almost equal amounts, so I really can’t afford to take a long leave. How have you dealt with that? Do you calculate only with one income? With the 10% special repayment option, you can pay quite a bit extra towards the monthly rate.
Point #2: What happens if we separate? My partner would have to carry the house alone. Have you contractually fixed such contingencies in advance?
Point #3: Does it make sense to design the floor plan so rooms can be partitioned later, which we don’t need right now? Or is that disproportionately expensive?
Thank you for any kind of responses and ideas!
N
nordanney23 Jan 2015 10:12An architect does not build a house; they are the planner. The house is constructed by a building company (regardless of its structure or organization).
If the architect offers a fixed price, they are acting as the building contractor and calculate the costs just like any other company (which, by the way, often also works with many subcontractors).
If the architect offers a fixed price, they are acting as the building contractor and calculate the costs just like any other company (which, by the way, often also works with many subcontractors).
Both are basically regional providers. The architect has long been an established figure in the Koblenz area, and Massivhaus Mittelrhein is also from that region, but of course they build in a wider radius as well. The architect offers a fixed price, so they function as a general contractor. Both work with local tradespeople and craftsmen.
The KfW aspect is important to us. Currently, the offer from Massivhaus Mittelrhein is for KfW55. I don’t necessarily need that, but it should at least be KfW70. Why is this important to us? First, because of energy costs, which of course you have to save on first. Second, I personally find it important to be independent from gas and oil and to use relatively “clean” energy. Third, it increases the value of the house in the event of a sale.
The KfW aspect is important to us. Currently, the offer from Massivhaus Mittelrhein is for KfW55. I don’t necessarily need that, but it should at least be KfW70. Why is this important to us? First, because of energy costs, which of course you have to save on first. Second, I personally find it important to be independent from gas and oil and to use relatively “clean” energy. Third, it increases the value of the house in the event of a sale.
B
Bauabenteurer23 Jan 2015 21:51Don't install a gas heating system; this way, you will be independent from gas.
What do you think about the idea I’ve mentioned before of building two separate living units?
Our “problem” is that we commute between our hometowns, which are about 100km (62 miles) apart. Currently, we own land in my boyfriend’s hometown. Of course, we want to maximize flexibility, which is always challenging when building a house. That’s why we want as much flexibility as possible.
At the moment, a three-room apartment would satisfy us for about 5 to 7 years. If we split the loans, we can deduct quite a bit on taxes and take advantage of two 50,000 KfW loans.
Does anyone happen to know how much more it costs to build two living units in one house?
Or would it be better to just rent for five years and then remodel later?
Our “problem” is that we commute between our hometowns, which are about 100km (62 miles) apart. Currently, we own land in my boyfriend’s hometown. Of course, we want to maximize flexibility, which is always challenging when building a house. That’s why we want as much flexibility as possible.
At the moment, a three-room apartment would satisfy us for about 5 to 7 years. If we split the loans, we can deduct quite a bit on taxes and take advantage of two 50,000 KfW loans.
Does anyone happen to know how much more it costs to build two living units in one house?
Or would it be better to just rent for five years and then remodel later?
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