Are the financial resources really sufficient??

Hello everyone,

my wife and I currently already own a house, but for personal reasons we want to move out of it in the short term.
We have already spoken with some home builders and providers such as Weberhaus and local architects.
We would like to build in order to realize our dream of owning a home. However, with such resulting high debts, we do feel a bit uneasy and would therefore like to ask for your opinion/assessment on this.

Income:
Husband: €3,000/year (incl. company car)
Wife: none, but looking for work.
Equity: approx. €80,000 (current house) + €20,000 savings

Expenses:
House: approx. €230,000 (ALL IN prefabricated house, incl. (underfloor) heating, tiles, etc.)
Plot: approx. €80,000
Additional costs: approx. €35,000
Interior furnishing: approx. €30,000

Thus, we would need to finance €275,000 via loan(s).
For this, based on the very meticulously kept household budget, we could spend max. €1,000/year, preferably less of course…
This calculation already includes €200/month reserves for the house and additional costs such as utilities etc.
If my wife should find work, we would like to set that money aside for vacations and extra expenses (luxury).
Since, as mentioned above, we feel uneasy about the high sums, we would like to choose a loan with a long term.
Of course, banks and providers currently give the green light in the current situation…
But since we don’t want to blindly trust them, we are very glad to have found this really great forum!!

Additionally, important:
One child (8 years old) and one child (16 years old - already in training and thus has own income for clothing etc.)

What is your opinion on this plan??

Feasible??
And if yes, which financing would you recommend to us??
Or is €1,000 too little for such a large sum??
Of course, we don’t want to overextend ourselves and not pay off forever…..

Thank you very much in advance for all upcoming answers!!

There's no easy green light from the bank in this situation. If both don't earn. The bank also calculates, and I don't believe that with this loan, 4 people in the household and only one income (here 3000€), they would just press the start button.

What about the current house? Will it be sold/rented out or does it already result in the equity?

We want to sell the current house and use this as equity. According to the preliminary discussions, this loan would be approved... An appointment at the bank is still pending, as the construction area will only be released at the beginning of 2015.

The amount to be financed is already quite high given an income.

Did I understand correctly that the 1,000 euros already include a reserve of 200.00 euros? This would then mean you can use 800.00 euros for the repayment?

No, the 200€ are not included, I have calculated them separately in the monthly budget.
Repayment is a maximum of 1000€/a.

My tip:

First go to your main bank, check and listen to what they advise you. They know your financial situation.
State your pain threshold for the repayment and remember that the interest rate may be higher after 10-15 years.
Also look at the amount that will need to be refinanced later. Don’t sugarcoat the numbers!

In advance, I can recommend the financing calculators of the respective banks. It’s quick and gives you a better idea of the amount.

Furthermore, I would consider whether a smaller house and/or a different plot of land are options.

And remember: there is more than one bank and many types of financing.

I wish you much success!