Beginners: Financing a single-family house with land

Hello everyone,

we are currently planning to purchase a plot of land in the Freiburg area and have a single-family house built on it. Unfortunately, I have little to no knowledge about financing and also little experience with comparisons since a loan has never been necessary before. I have already done some preliminary reading here but would like to get a small initial assessment before going to the banks.

Here are some basic details about us:

He: 30 years old, ~ €2,800 net (490 € deduction for the company car already included)
She: 29 years old, ~ €2,000 net
No children planned.

Annually, between €35,000 and €50,000 in special payments are added, which can be used for special repayments. No outstanding loans for cars or anything else.

Our budget is about €600,000 for approx. 450 sqm plot and 150 sqm (prefab) house. Unfortunately, the land prices in this region are quite high and range between €400 - €500 per square meter.

Is this acceptable or feasible for banks? I think especially the special payments are good for repayment for us, but not significant for the banks since they do not come into the account monthly.

I look forward to a rough assessment and exchange of experience!

How much equity are you contributing in total? How much of the 600 T€ do you want to finance?

Regarding special payments: This strongly depends on how sustainable they are. Are these bonuses or profit distributions from a company in which you might even have a stake?

Hello Libero5,

How much equity are you putting in total? How much of the 600k € do you want to finance?

Not much, ~ 50,000 €. The rest would have to be financed by us.

Regarding special payments: It strongly depends on how sustainable they are. Are they royalties or profit distributions from a company you might even have a stake in?

These are shares of my own turnover that I generate in the company. They are not guaranteed but it is very likely that they will come. The 35,000 € is certain, the 50,000 € with 90% certainty.

Are the special payments gross or net? Also secure even in economically rather bad times?

Why only 50 k equity when you have such high special payments (Te)

Hello,

Are the special payments gross or net?
Even in economically rather bad times for sure?

The special payments are net. In the last ~15 years, the payments have always been made, the industry is also "Corona-proof" .

Why only 50k equity when you have such high special payments (Te)

Because the special payments have only been contractually agreed upon with me since last year.