Approximate budget for house construction project

It's nice that you set yourselves a limit/budget. That's how it should be. You have to be able to live, after all. But your demand is too high for 1,000€ p.m.

Job prospects aside. What counts are the earnings in the here and now. Speculating on more salary is the wrong approach. Such things can drag on for years. For me, it's already been going on for over 2 years and there's no end in sight. The department that wants me has been fighting for a transfer forever. If it works out, great. If not, it has to work anyway.

Who has money at 24??? No one!
The years after school are meant for traveling and spending money... yes, also wasting it. Some more, some less, before committing to an employer.
You don’t reach salary peaks by staying in one company. There might be exceptions, but what I want to say is: in the first working years (+-10 years), I wouldn’t want to fix myself with housing, so changing jobs can rather be disadvantageous. Property stands for "immobile" – do you want to put yourself through that already?
Wanting to have 1000 € left from a 4000 salary also shows that you want to afford other things.

Why do you want to limit yourselves already? I was still partying at 25 and waited for the weekend: not because I needed time for gardening, but because I wanted to go to discos and nightlife.

Why do you want a house? Make a list and weigh it against the restrictions that property means.

First of all, I want to say that I have not included any future salaries in my information, only the current one. Regarding what one does at 25, everyone can decide for themselves; just because others are still out on the mile at 25 partying until delirium, we don’t have to do the same. If we hadn’t considered finding a permanent residence and settling down, we wouldn’t have started reviewing our finances, comparing them, and getting involved in the topic. The question of whether we want to do this has been passed; we are at the point of whether we can afford it. The statement that "you have to have been at several companies to make money" I leave hanging; you can’t generally say that, especially not in such big companies. We prefer to stick to our permanent contracts; there are also enough opportunities internally to reorient and progress, all a matter of commitment, diligence, and willpower.

Regards Schubi

I want to give you a tip: wait a few more years and save up some money. On the one hand, you will not be able to build a new house with 1000€ monthly. The costs you can expect are in the range of 300,000 to 400,000 € (same situation as ours, only our salary was a bit higher and the equity at almost 150,000€). A house of this size will cost you over 200,000 €, plus the incidental construction costs of 30-40,000 and the plot of land, say 80,000€. Furniture, floors, kitchen, wallpaper, carport all not included yet :) For 1000€ monthly you get a loan of around 200,000€, where should the rest come from?

Then other points to consider that should make you think: Already married? That costs money. And do you want children? If yes, your income will reduce from 4000€ to 3000€ as long as one of you takes a parental leave year. And even after that, childcare must be paid for: for 20 hours per week we currently pay almost 500€...

A piece of advice would be... save for another 6 years, 30 is a good age to build. In a few years, probably due to the low interest phase and many builders who overextended themselves, there will be relatively new houses on the market, and prices will drop. It is also not certain that interest rates will rise exorbitantly again... nobody really knows that. You should make sure that the house loan can definitely be serviced with one salary. And what I would also advise you to do... talk to your parents about the plan. Keyword interest-free private loan, or advanced inheritance... although if you are only 24, your parents are probably still too young to talk about inheritance :)

Basically, the more equity you have, the cheaper the loan.

Even if some may not see it that way now.

At 24, you have time to repay, so you don’t have to be finished in 15-20 years. That means you don’t necessarily need the 2-3% initial repayment. If you can handle money (I see that as a prerequisite here!!!), in my opinion, you can definitely live with a 1-2% repayment and make the rest through special repayments. Even with a 1% repayment, depending on the interest rate, you will be finished in about 40 years. So before your retirement starts. Even if you don’t count on salary increases, at a large employer salary jumps tend to come more or less automatically (annual inflation adjustment + career planning), so you should also have more money left for special repayments in the future. As long as you can stay there, a continuous salary adjustment opposes the constant annuity. In addition, you also have the €1,200 monthly reserves. Over the course of the financing, special repayments should therefore be possible at some point.

The only issue you have to watch out for is family planning. But even then, the model with the low monthly repayment would work in your favor.

I still recommend a condominium. Four years ago, we had roughly the same situation and bought a condominium. Over the last four years, we paid it off steadily and now sold it at a profit on April 30th. We are now starting our new construction project (28/29 years old) with about 100K in equity!!! And by now, we are married and have one child, with a second on the way. There is a lot to consider before you commit to an entire house immediately!!! ;)