Assessment of Financing New Construction 425k € / Overall Financial Situation

I also advocate saving for two or three years and then building.

With that savings rate, you can forget the idea immediately.

You can discard that idea based on the savings rate.

Actually, I would rather advise a very small house, which might be financially feasible, instead of continuing to save... With the salaries and savings rates, that won’t really get you much in 2-3 years.

Otherwise, unfortunately, it might also be the case (depending on what further calculations by the bank reveal) that you can’t afford a single-family house :(

The rough estimate has already been mentioned: plus additional construction costs, architect, etc. plus garden, kitchen, etc. How steep is the plot anyway?

The slope is approximately 8%. From the street up the hill.

Hello!

I’m writing from the perspective of someone who has gone through a similar financing. :) So if we had asked here beforehand, our setup would probably have been torn apart as well. ;)
We also have about 400k in loans and currently around 3800 net income. The difference with us is that this is already the case with a child + reduced salary (I’m still working part-time at half capacity because our child is still small). That means we prospectively have the outlook of earning more again and thus faster repayment.
In general, we also work in an industry where salary increases are to be expected.

At the moment, the first years after building the house are the years with the “tightest belt” in our budget planning. So how does that feel?
I’d say: You can manage it. Despite the high installment, we decided to maintain a monthly savings rate of 250€ – just in case something happens.
With loan payments and savings contributions, fixed costs and all the rest, we currently either break even each month (estimated 100€ left after everything), or have up to 300€ left after everything.
That’s not much for a family. That’s basically what’s left for “consumption”, vacations and other stuff you sometimes feel like doing.
But: We knew that beforehand. We already deducted all reasonably calculable or estimable costs such as groceries, clothing, toiletries, cash needs, fuel etc. generously in the planning, so that we can manage with that.

Long story short:
Yes, it’s doable. But no big leaps or cruises are possible beyond the house and a solid lifestyle.
We chose it consciously because we knew we could manage it, and above all: because we know the situation is only temporary and that as the child gets older we will have SIGNIFICANTLY more net income again. This situation would also be manageable permanently, but you really have to want it. There are restrictions, and especially bigger purchases (my husband dreams of a new Tesla) remain wishful thinking for now. So I would seriously consider if you want to put that shoe on.

Best regards,
Kati

I signed up here specifically because we are almost finished with the house construction. With networking, the necessary equipment, as well as hard endurance and the willingness to work every Saturday from 7 am to 10 pm and every day after work for 12 months straight, 350k for a house (pure construction costs) is more than realistic. Especially in the countryside.

Unfortunately, material has become insanely expensive.

Our house, as a 1 1/2-story with a hipped roof, recessed terrace, and four gable dormers, was already a challenge.

We are building according to Kfw 40+,
250m2 living area with 60m2 usable area double garage+workshop room

Finished ceiling height 2.80m, fully brick-faced.
Lift-and-slide door, floor-to-ceiling and full-height windows, masonry basic stove, 3 bathrooms with showers and Hans Grohe concealed fittings.

I just want to say, don't lose sight of reality.
400k is a LOT OF MONEY,
I would hand 5-6 grand to an architect up to performance phase 4 for the plans and organize the rest myself.
You save 20k, and in the end, you have to organize everything yourself anyway.

Good morning everyone,

The brother-in-law is a master electrician.
The architect’s fee is priced at €28,500 gross for all service phases.

Hi there! I’m writing from the perspective of someone who has gone through a similar financing. :) So if we had asked beforehand, we probably would have had the whole setup torn apart as well. ;) We also have about 400k in loans and currently around 3800 net income. The difference for us is that this is already the case with a child + reduced income (I’m still working half-time part-time because our child is still small). That means we prospectively have the outlook for more income again and accordingly faster repayment. In general, we also work in an industry where salary increases are to be expected. Currently, the first few years after building the house are the "tightest belt" years in our budget planning. So what does that feel like? I’d say: You can manage it. Despite the high installment, we decided to continue a monthly savings rate of 250€ - just in case something comes up. With loan repayment and savings, fixed costs and everything else, we currently either just break even monthly (estimated 100€ left over after everything) or up to 300€ left after everything. That’s not much for a family. That’s basically what’s left for "consumption," vacations, and other stuff you feel like spending on. But: We knew that beforehand. All reasonably calculable or estimable costs like food, clothing, drugstore items, cash needs, gasoline, etc. were already generously deducted in the planning so that we can manage with that. Long story short: Yes, it’s doable. But no big leaps or cruises are possible with a house and a solid life. We consciously chose this because we knew we could manage it, and above all: because we know the situation is only temporary and as the child gets older we will have SIGNIFICANTLY more net income again. This situation could be handled permanently, but you really have to want it. There are limitations, and especially bigger purchases (my husband dreams of a new Tesla) remain wishful thinking for the time being. So I would think carefully about whether you want to take this on. Best regards, Kati

I believe very few people would have raised their finger if the 425k€ as a fixed final sum for everything together were realistically achievable. But your situation is in no way comparable to that. Then I could also throw my house build into the ring :-p and compare.