Building a house: sensible or wait?

Hello everyone,

my girlfriend (24) and I (27) also want to realize our wish for a home of our own. Especially because of the low interest rates on loans, we want to start the construction project now and not wait any longer until we have saved up more equity.

Net income "her": €2250
Net income "me": €2250
Total equity: approx. €100,000
Roughly estimated financing requirement: €400,000 (or possibly €450,000)

Basically, we both earn 13.5 or 14 monthly salaries respectively. These are not yet included in the above figures. The same applies to "her" profit participation, which for example was €4,000 net last year.

We would largely pay these off as special repayments at the end of the year. Possibly partly also use them for a vacation or to settle other bills, etc.

Basically, it is also under discussion to possibly have a child, but with "her" explicit wish to work full-time again after one year of parental leave (daycare, grandparents, ...).

From your point of view, is this financing manageable?

Now a few details about the construction project itself:

Plot (not a specific one yet) 500m² at €330/m²: €165,000

Regarding the house, I have no idea yet what it "may" cost. The following ideas we have:

[*]high-quality fittings (so nice tiles, nice parquet, nice sanitary fixtures; but nothing absolutely overpriced, good value for money)
[*]180m² living space
[*]ground floor: living/dining room; open kitchen; WC; pantry; entrance area
[*]upper floor: children’s room; children’s bathroom; office; bedroom; dressing room; parents’ bathroom
[*]basement: utility room; laundry room; 1 or 2 "hobby rooms"; one hobby room might become my office if a second child arrives
[*]parquet flooring in every room except the two bathrooms and basement
[*]solid house (I was thinking of Poroton T9 with insulation)
[*]KfW70 or better
[*]geothermal heat pump (surface collector or probe)
[*]double garage (with motorized door and some space for garden tools and bicycles)
[*]possibly solar system for hot water heating
[*]front door with fingerprint scanner (I like technical gadgets)
[*]controlled ventilation with heat recovery
[*]underfloor heating on ground and upper floors
[*]triple-glazed windows
[*]blinds everywhere (in the parents’ bedroom electrically operated, ideally with a timer)
[*]terrace
[*]simple garden
[*]simple basic shape, e.g. 10m*10m
[*]large windows

That should be "about" it :-)

Of course, all ancillary building costs still have to be added.

Does this roughly reach the planned €500,000 or €550,000?

I don’t want to calculate right at the very limit.

Thank you very much for your help!

Best regards

PS: Because it is relevant due to property tax and wages: we are from Bavaria.

That can only be answered once you have more concrete numbers. From your income, I don't see any difficulties. However, with one limitation: I don't know what you mean by "gehoben". I would say this way, we build qualitatively well, 140 sqm living space on a plot for 100,000 without a basement. In the end, we will certainly have paid almost 400,000. House price (prefabricated house) 220,000 (with extra requests, only gas boiler as heating) Garage 10,000 Kitchen 10,000 Floors 10,000 Outdoor facilities 10,000 Plot 100,000 Additional construction costs 30,000

Hello,

Now a few more details about the construction project itself:

Plot (not yet specific) 500m² at €330/m²: €165,000

I have no idea yet what the house may "cost". We have the following idea:

[*]upscale fittings (so nice tiles, nice parquet, nice sanitary fixtures; but nothing absolutely overpriced, good price/performance ratio)
[*]180m² living space
[*]Ground floor: living/dining room; open kitchen; WC; pantry; vestibule
[*]Upper floor: children's room; children's bathroom; office; bedroom; dressing room; master bathroom
[*]Basement: technical room; utility room; 1 or 2 "hobby rooms"; one hobby room should possibly become my office if we have a second child
[*]Parquet in every room except the two bathrooms and basement
[*]Solid house (I was thinking of Poroton T9 with insulation)
[*]KfW70 or better
[*]Geothermal heat pump (surface collector or probe)
[*]Double garage (with motorized door and some space for garden tools and bikes)
[*]Possibly solar system for hot water preparation
[*]Front door with fingerprint scanner (I’m into technical gadgets)
[*]Controlled ventilation with heat recovery
[*]Underfloor heating on ground and upper floors
[*]Triple-glazed windows
[*]Blinds everywhere (in master bedroom electrically operated, ideally with a timer)
[*]Terrace
[*]Simple basic shape, e.g. 10m*10m
[*]Large windows

That should be "about it" :-)

Of course, all ancillary construction costs still have to be added. Will we roughly reach the planned €500,000 or €550,000 with this?

Up to this point, the house including double garage and terrace would cost a good €350,000 in the Rhineland; completely ready for painting. In Bavaria, the costs are 6 to 8 times higher.

Your calculation would then roughly look like this:

Plot - €165,000.00
Single-family house - €374,500.00
Ancillary construction costs - €35,000.00
Outdoor facilities - €15,000.00
Reserve for extras - €20,000.00

amounting to a total of €609,500.00 if your above ideas are to be realized as planned.

Regarding your financing inquiry, I recommend—as I always do—sitting down for a good two-hour meeting with an independent financer to work out a financing offer based on your personal situation. Unlike banks—although the consultation certificate is now mandatory—financing brokers are fully liable for advice errors and tend not to pull a preset offer out of a drawer.

Kind regards

Roughly calculated financing requirement: €400,000 (or possibly even €450,000)

With a 15-year fixed interest period and 2% repayment, the monthly rate is immediately around €2,000+. Additional costs (insurance, heating, taxes, garbage, etc.) apply... €4,500 net income doesn’t sound bad at first... however, with this financing, probably "only" €2,000 remain after deducting house costs...

Depending on your current living expenses, that may be sufficient or tight... especially if a child is expected... (less income/high costs for full-day care)...

Now it may still be your wish to work full-time again afterwards... but once the child is there, that can quickly change, especially if no suitable childcare spot is found...

I would seriously consider whether I really want to build in the €550k range or rather try to manage with €450k...

Hello everyone, I would like to thank you for the numerous responses. I believe we will try to get by with €350,000 in debt capital. Since we currently have no reason anyway and can start at the earliest next year, we should also be able to save some extra. Many thanks also to Bauexperte and Der Da for the rough cost estimate! Best regards

Shouldn't one always also consider the region in which one lives in the matter? In some areas, prices are very high at times and then not again. What I mean to say is that one simply shouldn't generalize too much.