Building a house - Does it make sense?

As f-pNo said correctly, I was more referring to a feeling-based assessment. One bank has already said that everything is fine, but honestly, even the bank can tell you a lot of things. Of course, we have also done the math ourselves, and if it had seemed completely absurd to us, we would not pursue the project any further. Nevertheless, I think it’s good to have a few external assessments – especially from people who are in a comparable situation.
Neither of us has ever had a loan, and we have never bought anything in installments.
It definitely feels very strange when you realize you suddenly owe about 300,000 EUR somewhere.

Best regards
LeiNi

Hi,

well, I see absolutely no problem - JUST DO IT! Don’t spend ages calculating everything a thousand times. At some point, you have to make a decision. But what I would advise: definitely also go, for example, to Dr. Klein regarding financing. We were very well advised here in Munich and got a much better interest rate than, for example, the savings bank offered. And: under NO CIRCUMSTANCES have any financing arranged with building savings contracts - that’s money thrown away - especially the savings bank does that.

About us: We originally wanted to build, but there’s simply no land available here or it costs about 500€/sqm... We have now bought a used house and renovated it. Advantage: a super mature garden (a dream plot with 1000sqm, which you can no longer get like that) and the neighborhood is already established - which means you know no multi-family houses or anything else will be built here... And a 200sqm house... If I had built it new and had to buy land (inheritance will unfortunately never be an option...), we’d easily be at around 1.2 million. And that’s just crazy... Even a new build on about 400sqm with 160sqm of living space costs about 800K... insane!

We also put in about 170K of equity and borrowed about 400K. It costs us about €1,700 monthly and after about 17 years it's paid off :-) Also mid-30s, 3 kids, wife is currently at home (will only start part-time again in about 3 years - that will be an extra cost then), net income €4,700 + child benefits. We manage just fine with that and don’t restrict ourselves at all (two cars included).

Of course, if you constantly spend €3,000 per month like that, it will be tight. But with your situation, none of this should be a problem. Just think about this: what is your maximum monthly burden that you can comfortably handle (even if, for example, only one salary is left) and when you want to be debt-free. Then you go to, for example, Dr. Klein or another independent financing advisor and they calculate your maximum loan amount for you. You currently have dream interest rates for 10 years! You can also take part for 10 years, the other part for 15.

Don’t calculate everything a thousand times forever. At some point, you just have to make a decision.

In this case, I see it similarly - it should be fine as far as can be assessed with the available information.

But I would be careful with such a blanket statement here in the forum ;). Others, for whom a closer look does not look so good, might take it seriously. At least if I go by some (partly incorrigible) thread starters I have come across in the last 2 years. For some, the wish is so strong that they reject/dismiss every argument :confused:, which pulls them out of their "dream world".

off topic: I have really been registered here for over 2 years?! It didn’t feel that long at all :cool:.