Building a house - from financing to planning

Hello dear users, I am 25 and would like to build a house with my girlfriend. Of course, we now have some questions about how everything works and how the financing should take place. Together we have a net income of about 3000 euros, and a plot of land of about 650 m2 already exists. The grandparents bought it for my girlfriend some time ago, but it has not yet been transferred to her name. We would like to build a house of about 130-150 m2 there. Our equity amounts to about 80000 euros, I am permanently employed and my girlfriend is currently on a fixed-term contract. How can the financing work? And how is the best way to start with the house? What do you think we would get for a loan and does my girlfriend’s permanent employment contract matter a lot? Thank you in advance ...

Start the other way around. Equity situation and property (are there still any liabilities here?) are already okay. What do you want/need anyway? Are children planned? What are your expectations? Can you assess whether these might change? What are your monthly expenses? What do you save each month? Also talk about the house without marriage (there is a thread about this). We once had the case that the bank wanted to see that we have been employed for at least one year - when in doubt, ask.

Even if equity is certainly quite good. The income is very "modest". Also young and without children. At 25 we also had about ~100k equity. But no child, no marriage, and about an income like yours. I wouldn't have even dreamed of building at that age. Not just because of the money, but simply because, in my opinion, there are much more important things at that age. The relationship should also be very solid. Without marriage, the division is also difficult (keyword liability!) if your girlfriend contributes the property. Ideally, the equity comes from you. We are now 10 years older, married, have a child, traveled a lot, and saved well. Think about it :)

Regards, Steffen

Hello, thank you for the answers. I have been with my girlfriend for 8 years, and it will continue that way. I have considered that I could increase my monthly salary by distributing Christmas bonus, and from next year there will also be about 200 euros more. We currently pay 650 euros rent, and I always think that this money could also be invested in our own property. The plot has a value of about 50-60,000 euros, which could also be used as a basis for a loan, right?? We have clear ideas about the house, that is not the problem. But where do you start when building a house? What needs to be clarified regarding the plot? By the way, there are no liabilities; we both have no loans or other financings open.

currently 650 euros rent and I always think this money can also be invested in your own property

that is wrong and banks always try to sell it to you that way. This comparison only makes sense if you do not have to take out a loan for your own home. Who do you think pays the interest? Exactly, you :) The question is: What is cheaper? Cold rent OR interest + house depreciation (maintenance etc.)

I have calculated this back and forth several times and renting is almost always cheaper. At least here in the East (renting extremely cheap!) and with my equity ratio of about 30%.

Regards, Steffen

Hey Dan133, Our starting position is similar, only our income is 900€ more. And we are building. The fixed-term employment contract could be a problem. I would sit down with a few banks and go through the matter. And about the house: get information, look at houses ([Musterhäuser] and [Hauspark]), get information, compare, develop ideas, get information, revise ideas....it can gladly take a year like this until the house and concept are finalized (like with us).