Building a house - Is that possible with our financial situation?

One can already think about building a house, but remain realistic and take the detour via a condominium. Above all, one can manage an apartment alone, because at that age a lot can happen in terms of relationships.

So today I had the conversation at the Sparkasse; given the current situation, I would get €250,000. I told him about the idea of keeping a household budget and simulating the situation as if I had a loan and would pay a €1,200 installment every month; he said that would be a good start. He recommended that I put part of the €1,200 into a Wohn Riester. I still need to get more information about that, although I am not a big fan of Riester. Then we came to the topic of the car loan that is still outstanding; I suggested that if I find a plot of land without a building obligation, I would buy the land and include the car loan, and instead of paying €400 towards the car loan, I would start paying €400 to pay off the plot. He also considered that a good solution. So it is clear that I will save as much money as possible; if I find a plot, it would be a consideration to buy it. Thus, my loan would be gone and the remaining money I save would go into equity.

Then we came to the topic of the car loan that is still outstanding. I suggested that if I find a plot of land without a building obligation, I would buy the land and include the car loan, and instead of paying €400 on the car loan, I would start repaying the land with €400. He also thought that was a good solution.

For that alone, the advisor should urgently consider changing jobs. Maybe make coffee or sweep the business premises in the evening.

A serious advisor (not a bankster!) would have told you the following: Pay off outstanding loans as quickly as possible with 100% of your available savings rate. After that, continue to save a certain amount of equity. In parallel, you can monitor the market regarding plots of land and pursue family planning.

Regards, Steffen

I rather wonder what the point of this restructuring is. You continue to pay your installment for the car, but in the background, you accumulate the interest for the land purchase and try to compensate for it by saving in parallel. This could even end up costing you more than simply paying off the car loan faster (with all available means).

Just for that, the advisor should seriously consider changing jobs. Maybe brew coffee or sweep the business premises in the evening.

A reputable advisor (not a bankster!) would have told you the following: Pay off outstanding loans as quickly as possible with a 100% available savings rate. Afterwards, you continue to save a certain amount of equity. In parallel, you can watch the market regarding plots of land and follow family planning.

Regards, Steffen

May I ask where you got your advice, because it pains me deeply; financial planners/advisors usually make a great effort to explain that with house construction, you should still wait 2/5/10 years etc., and then you hear clients say the bank says it’s possible...

Getting these notions out of your head again....
On top of that, having to listen to "yes, you said it’s not possible blah blah"...

This banking world today... all that remains is shaking one’s head

May I ask where you got your advice, because it breaks my heart so much; as a financial planner/advisor, we usually make every effort to explain that with house construction you should wait another 2/5/10 years, etc., and then you hear clients say the bank says it's possible...


Getting these notions out of your head again...
Also having to listen to them say yes, you said it’s not possible, blah blah...


This banking world today... All that’s left is shaking one’s head

I am no standard and did not need an advisor. Due to equity and income, it was never an issue, and the banks were the "beggars" in our case.