Building a 150 sqm house and prefabricated garage financable?

Hello Community,

we would like to build and have reserved a plot of land. We are interested in your assessment of the financial burden of the construction project. We are still in the early planning phase, much is still open, but I have filled out the data as comprehensively as possible. Our planner said with a project sum of 500k that it is feasible - I am unsure about what you hear :/.

Currently, we are planning a 1.5-story building with about 150sqm with a heat pump and photovoltaic system with storage + prefabricated garage + 2nd parking space (in case a 2nd car is needed - the connection to public transport is good though).

I hope to finance it with a rate of 1500-1700 – does that seem feasible to you?

We cannot continue living in our apartment in the long term (the reason would go beyond the scope here). In the city, if you get anything at all, nothing comes under 1700€ warm rent that suits us. The plot is located in a small town about 30 minutes away near the grandparents.

Best regards

General information about you:

[*]Who are you? Married couple
[*]How old are you? 32f / 36m
[*]Are there children? Yes, 2
[*]Are children planned? Possibly a 3rd – but currently rather no
[*]What do you do professionally? Testing engineer / designer
[*]Are you employed, self-employed,… employed
[*]How many hours do you work? 38/38

Income and asset situation:

[*]What income do you have (gross/net)?
2650 f / 3200 m (full-time; currently he is in part-time single earner status until Feb 22 with net 2730) both members of IG Metall with holiday and Christmas bonuses and various other allowances which are not considered here
[*]Child benefit: 438
[*]Equity capital: approx. 100k (with the majority invested in stocks and no capital gains tax considered here yet)
[*]How much equity do you want to invest in the house project? 60k

Expense situation:

Housing costs:

[*]current cold rent 830
[*]current warm rent 1028
[*]electricity 68
[*]phone, internet, mobile 50

Mobility costs:

[*]Savings rate for new car: 120
[*]Insurance 60
[*]Taxes 8
[*]Fuel 50
[*]Repairs 30
[*]Tickets: 30
→ We live in the city and do most on foot or by public transport. Our car is currently more of a luxury and breaks down by standing – we only need it for trips on weekends or similar. Since we are moving out of the city, these costs will certainly increase substantially. He currently works from home but that may also change. She definitely has to drive due to production – I would expect at least costs of 300-500€ prospectively.

Insurance costs:

[*]Liability insurance: 10
[*]Pension insurance: he approx. 140 / she 100
[*]Disability insurance: he 170 / she 100 (man pays 50% risk surcharge due to chronic illness)
[*]Accident insurance approx. 60€ for all
[*]Household insurance: 10
[*]Legal protection insurance: 20

Living expenses:

[*]Groceries including drugstore etc.: 800
[*]Clothing: 150
[*]Daycare fees 1 child (2nd is already free) + food for 2 kids: 400
[*]Miscellaneous: 200

Savings:

Before my parental leave at least 1000€/month + surplus at the end of the month (usually in total between 1000-1500). During the parental leave we still put away 600€ per month with 1100 less income. I have only been working again since November, but we were able to put away 1500€ at the beginning of December – this should also work prospectively for the next two months, after that with my husband's full-time work 500€ more income will be available again.

Income and expense totals:

[*]Total income: 5800 (respectively just under 6300 from March 22)
[*]Expenses: approx. 3600 + 1500€ savings rate
[*]Balance: +700€ (
[*]of which total cold rent and dispensable savings (e.g. savings rate for house): 830+1500~2300

General information about the property:

[*]How large is the plot? 740
[*]How high is the standard land value? 220-240 (still being developed)
[*]Garages – yes 1, and possibly carport (but that can wait).
[*]How large is the house? 150sqm

Plot costs 194k including development, notary and fees
Construction costs: 350k
Cost breakdown:

[*]Total costs: 550k
[*]Deductible equity: 60k
[*]Financing amount: 490k

Construction costs are likely now over 3000.--/m² and thus your assumption is clearly too low. Pension insurance makes no sense at this amount (or at all) and should be used for repayment. Disability insurance is a matter of preference; I wouldn’t do it for these professions. With two full-time salaries, 600,000€ debt would be possible, but I wouldn’t do that either.

I think the 550k would be financeable with your income. However, the question is whether you can build a house for 350k. In which region do you want to build? Prices vary by region. Would there possibly also be smaller plots of land there? 200sqm less might be enough and then you would have more money for the house. Photovoltaics and storage also drive the price up. Although photovoltaics might already be mandatory by the time you build. Maybe a standard house from a low-cost provider is enough. And even then, it can already be tight.

The financing with a total term of 30 years is manageable.

However, I think that you are more than tight with T€ 350 for a 150sqm house including incidental construction costs, garage, and outdoor facilities.

Calculate on average T€ 2.5 per sqm (= T€ 375) + T€ 30-50 incidental construction costs + garage T€ 20 = house

I think, however, that you are more than tight with €350,000 for a 150 sqm house including ancillary construction costs, garage, and exterior facilities.

I would definitely agree with that..

We are also building in a normal price region, and if there isn't a massive amount of own work involved, then I strongly advise you to really, really urgently review the construction price!

Photovoltaics and storage also drive the price up. Although photovoltaics might already be mandatory by the time you build. If it becomes mandatory, a 600W balcony system might be enough, which costs less than 1000.-- and a regular electrician can do it on the side.