Assessment of financial feasibility - is it doable?

Hello everyone,

and I would also like to hear your assessment of our planned financing.
General information about you:

[*]2 people

[*]25 and 24 years old

[*]No children yet

[*]Me: permanent employee - IT specialist 40 hours per week
[*]Her: permanent employee - media design and IT 35 hours per week due to part-time studies. Switch to 40 hours after completion with salary increase - in 1.5 years.

Income and asset situation:

[*]Combined net income of approx. 3,600€

[*]Equity: 15,000€ - in other words, nothing. The bank is aware of this and would still approve financing.

Housing costs:

[*]Cold rent: approx. 800

[*]Warm rent: approx. 1100

[*]Electricity approx. 100 €

General information about the property:

[*]550 sqm plot with slight slope is available

[*]Planned maximum expenditure for the house including ancillary costs: 300,000€
[*]Monthly repayment of 1100 - 1200€

[*]Interest rate of approx. 2% was mentioned
[*]Term of 30 years with interest fixed for 30 years

Well, it's getting tight.
Does "land is available" mean that it belongs to you and is paid for, or are you already financing it, or is it reserved? If it belongs to you free of encumbrances, it can be counted as equity. Otherwise, 15,000 equity is of course not very much.
Is a significant increase in income expected, especially for you? It's not a bad income, but with the house plan it could be more substantial. How is the income distributed? I understand the statement "no children yet" to mean that you are planning some. Then it will get tight.
A house for 300,000 including everything, ancillary costs, paving the driveway, kitchen, a few pieces of furniture you will need, is also "ambitious," to put it mildly.

The plot is available means it is reserved and will be purchased privately. It currently belongs to an acquaintance of ours. The bank will not be involved in the purchase. Whether it will be a private loan or another model is still open. Therefore, I don't think it can be counted as equity.

Salary changes are also expected for me, but one cannot rely on that, which is why I want to calculate with the stated values – keyword "polishing the numbers". As of now, we "cannot afford" children, we have to be that honest. However, there may be a promotion opportunity in my company, which also means a salary change. It is planned to include own work in the construction. The electrical work is to be done partly by the family (there are 2 electricians in the family), and coverings and painting will be done by ourselves. The outdoor area is also to be laid out by ourselves, and the carport will also be built on our own. Whether further own work is possible remains to be seen, as there are many things that, in my opinion, should be done by professionals, unless the necessary experience is present. As of now, it will be tight, that is clear to us. However, we hope for salary increases, since we are still quite young. Nevertheless, for the moment, the calculation must be based on the current values.

Of course that counts as equity, depending on how you arrange the purchase, but you may then have to declare the loan to the bank. Really bad: Someone comes into the land register for the loan for the [Grundstück]... €300,000 is enough for a house, but with that salary a lot of discipline is required, and if you then also have to pay off the [Grundstück]...

Plot is available means it is reserved and will be purchased privately. It currently belongs to an acquaintance of ours. The bank will not be involved in the purchase. Whether it will be a private loan or another model is still undecided. Therefore, I don't think it can be counted as equity capital?

Well, if it is financed, then not. Whether through a bank or otherwise does not matter.

But do I understand correctly that in addition to the loan installment, there will be another installment from the plot arrangement? How high is it supposed to be?

Really bad: Someone is registered in the land register for the loan for the property...

That is not planned. It will be registered in our name.

Well, if it’s financed then not. Whether through a bank or otherwise doesn’t matter.

But do I understand correctly that in addition to the loan installment there will also be an installment from the property construct?
How much is that supposed to be?

Regarding equity, I now have 2 answers
Exact amounts are not yet planned. How we would divide everything is not yet decided. However, we plan to keep the total burden in the range of 1100-1200.