1972 house with 174 sqm from the neighborhood

Hello everyone,

there has been a house for sale in my neighborhood since the day before yesterday, which I looked at for the first time yesterday. It is a really nice house, in a (for me) great location. In the village center of a village with about just under 800 inhabitants on the southwest slope and despite the village center almost alone located (1.5 adjacent neighbors downwards, forest and nature upwards and to the back, and in front of it the school and the swimming pool).

Building
Plot size: 1377
Slope: yes, southwest orientation
Number of parking spaces: 2 (double garage)
Number of floors: 2 (ground floor with 3 rooms, shower bath, storage room, laundry room and the technical room (2 rooms + bath so far used as a granny flat, 1 room used as commercial space)
Roof shape: gable roof (estimated 25°)
Orientation: east-west orientation
Year of construction: 1972
Renovation: 2016 (most windows, complete electrical system (standard), complete water and sanitary, and floors in the house)
-> There is a nice and large kitchen included and a huge southwest terrace on the upper floor (really dreamlike)
-> The terrace is tiled and recently damaged, water seeps to the house wall, there have been 2 water stains in the technical room for about a week (they really look fresh, it rained very heavily here)
-> Roof is okay and dry, but already 50 years old, I definitely need that as a buffer on that side, the risk is too high for me

Requirements of the builders
Number of people, age: So far just me (27) - relationship has only started very recently (a few months), so I do not want to count on that yet
Room requirements on ground floor, upper floor: Unknown so far, my wish would be a family with 2 - 3 children.
Office: family use or home office? Both

About me: I am 27 years old and am finishing my Master’s (time horizon, 2 months), but have been working full-time for almost a year (salary about 3k net + 1.2 salaries) - i.e. no probation period anymore.
I currently live again with my parents since I started working and finishing my Master on the side (I signed a restriction contract before the Master and therefore had to start working).
The living situation with my parents was only intended as a transitional solution because after work I am still busy with university things daily for 3-4 hours and additionally on weekends, so I didn’t want to also take care of household and so on.
Basically, I am a fan of building myself, have craftsmanship skills (I have renovated my grandfather’s apartment and my parents’ apartment with my father and grandfather - whether concreting, screed laying, electrical work, heating, water, sanitary, tiling, floors, windows, or doors ... I was involved, we largely did it ourselves or with the help of acquaintances and friends from specialist areas and we were helpers). However, I am afraid that I won’t manage financially to build my own house when you look at the prices here. The prices here for building plots in the new development area have just risen above the 100€ mark per square meter, we have a meadow in the village that is not developed but could be built on (development costs must be borne).
I am a bit torn, the house is in demand and I would like opinions on whether it is even possible and sensible.
Basically, it is an old house, but a very nice house with a great layout and great location.

Financing:
Purchase price: 370,000
Additional purchase costs: 20,000 (no agent)
Maintenance costs: 30,000 (for roof and terrace, everything else is not urgent)
-----------------------------------------------------------------------------------------------
420,000 €

Equity: 10,000 € usable for the house (last year I had to buy a car (paid cash) and first created a buffer that I don't want to touch)

So I would have to finance 410,000 Euros
From my parents, I would get an interest-free or low-interest loan from their savings for their retirement provision to improve the equity capital (for better interest rates at the bank)
How high that can be, I don’t know, but I have to repay it just like the bank loan.

Salary about 3000 net
I cannot properly estimate expenses because I have only lived in a student dorm and now back at my parents’.
Currently, I put away almost 500€ per month for retirement provision (which I can reduce at any time), 55€ occupational disability insurance, 50€ savings rate for godchildren, 200€ for building society savings, 200€ savings rate for the car, and save on average over 1200€
But there is definitely still potential to save regarding my current expenses, however, there is no alimony to pay so far...

What is your opinion? Buy, build, wait?

Regards
Sahitaz

you are young and may possibly change the region? if not, work with the salary

Tendentially, I no longer want to change the region. I have thought a lot about it in the past weeks and have come to the conclusion not to do that in the long term at all; I am very attached to my home. Maybe I have already had all my region changes (Bachelor at Lake Constance, Master in Northern Bavaria, semester abroad in the USA).

What I am sure about is that I want to spend my time in family life (so maybe from 30-55) here, if that is conceivable from your side. I am a village child and want to remain one, and the proximity to my family would be great.

I would get an interest-free or low-interest loan from my parents' savings for their retirement provision to improve the equity (for better interest rates at the bank)

Squandering parents' retirement savings? That means great trust and great responsibility. Improving interest rates hardly works these days anymore ;) What amount are we talking about?

What is your opinion? Buy, build, wait?

Why not buy? If you want to stay there and the location/house would guarantee a sale at any time, you might lose the incidental purchase costs. It's negligible. With €3,000 net, the bank will consider €1,400 for living expenses. Then take another €400 monthly for the house and €1,200 remain for the installment. That is quite feasible with family support. However, then you alone cannot make big leaps anymore.

Hands off the parents' retirement provision. What if something happens to you? Will you then possibly drag the parents down financially? Either you can afford it or you can't...

difficult to estimate. My father told me that if I really wanted it, and a few tens of thousands of euros would reduce the interest by one or two tenths, we could manage that. However, I do not assume that we are talking about a very large sum (maybe 50-70?). Due to my situation - just finished studying, bought a car and gained some fat reserves - I simply have no significant equity, so this would be a 110% financing with renovation needs alone... That's why I find this point perhaps very appealing.

It is definitely not about the full amount of retirement financing, far from it. Rather a sum to obtain interest advantages, IF that makes sense.

But so far it doesn't really sound like you have major financial concerns?