Building from 50 - experiences with short-term loans?

Hello everyone,

the following constellation - unusual. Would you still like to take a look at it?

He 47 - 2500 / She 28 - 1600 - together: 4100 net p.m.

Equity currently = 30,000

Reserve currently = 8000

In 3 years it should start - by then the plot of land will be purchased (= approx. 40,000 = equity reduced/gone)

Prefabricated house - approx. 140 sqm - 200,000 including incidental costs

Children in 4-5 years

Expenses currently together including rent: 2500 (rent currently 600 warm for 75 sqm - a dream )

The project is to be carried out near Bautzen/Saxony.

Are these infos enough for a first critical look at whether this is feasible?

My house bank would (without house construction) provide me 30,000 for consumption without inquiry. Is that an indicator of what might be possible for a house financing?

The term cannot exceed 20 years due to reaching the pension limit.

Looking forward to feedback - and no worries - also happy to be critical!

Best regards

I wouldn't build, even if you were to find a bank that finances it.

With 200,000 you can't build 140 sqm including ancillary building costs today.

One income will be lost and expenses will increase.

You will still work for 20 years. During that time you want to build and pay off a house, start a family, and save for the children's education.

I see it the same way as haydee. The income is not great and there is not much equity either (for that age). Even though Saxony is one of the cheaper areas, the house including additional costs probably costs around 300k. Added to that is the plot of land. Your wife’s/girlfriend's salary is gone and you have additional expenses because of the children. I would definitely not do it even if it is hard to say goodbye to a dream.

Sorry, but without a clear stable salary development, it will be more than exciting at retirement. With a lot of own effort, something is possible, we have seen that with friends. However, he did everything from the foundation himself after work and lived in the house next door. I admire that, I wouldn't have managed it myself.

Thank you for this first assessment.

Here in the rural areas of Saxony, such prices (200,000 just for the house including additional costs plus existing land) are not feasible. I have been observing the real estate market for over a year. It is picking up here too. But not like in other (West German) metropolitan areas. Nevertheless:

Your comment on family planning is not to be dismissed – I have so far "paid off" one child – a terrible expression – that was the value of a single-family house. I also hope to realistically assess these "costs"...

Best regards

Sorry, but without a clear stable salary development, it will be more than exciting at retirement. With a lot of own effort something is possible, we have seen that with friends. However, he did everything from the foundation slab himself after work and lived in the house next door. I admire that, I would not have endured it myself.

Given the current development, I expect a 5% increase for me - just like in the last 5 years. But that is exactly what I don't want: Handyman-wise I am not the most skillful. Expanding the house myself is not an option.

Thanks for the feedback![/QUOTE]