Buying land without knowing what the house costs?

The bank is not supposed to finance 100%, that's why we want to contribute equity ourselves. But that is also worth something. Since we want to do everything ourselves starting from the shell construction (of course with a construction manager, not alone), we will definitely save more than 10-15%, but since the bank does not "accept" more, I have now assumed 10-15%. That must then be deducted from the 250,000.
Honestly, I also don't think that we will ever not be able to pay the 800 euro monthly installment – because we also have to pay rent, which doesn’t just disappear. In addition, the parents-in-law still have 2 houses and if something really bad happens, they would certainly either "help out" or possibly even act as guarantors. Eventually, we will also inherit these houses, but certainly will not live in them. Therefore, I don't really worry too much about the future. We also prefer as low installments as possible so that we can "live" today and pay off for as long as possible. The remaining debt will eventually disappear when the other 2 houses are sold.
However, I would prefer to do the calculation without these "securities". It should work out that way as well.
I also don't know if the parents-in-law will "cooperate". Surely they will not allow their son to lose his house, but begging in advance... hmm no.

Your 800€ installment is without repayment! So you will never get out of your debt.

A bungalow is not cheaper if you want the same floor area.

Is your rent 800€ cold? You have slightly higher additional costs with the house than with the apartment!

A 100% financing has worse interest rates than a 60% financing. Have you already included the interim financing? Also consider the interest during the construction period!

If you earn enough money, you can do 100% financing, but normal people cannot.

So if you really needed 60K in equity to build a house, hardly anyone could afford that. At least not the average German family. I doubt they are even capable of saving that much cash in a reasonable time. Yet average families also build houses. How do they do it?

They either save for a long time and/or earn enough. There are also many who do it like you and imagine themselves rich.

There is always some bank willing to give a loan with very little equity; you just have to search long enough.

But that won’t make you happy.

Before the start of house construction, there are already the unavoidable costs:

Land + property transfer tax + local connection fees + development + utility connection to the house + notary + land register entry + surveying + architect + structural engineer + building permit + soil survey

But that’s then a perfectly smooth ground.

You simply cannot avoid these costs.

Then money goes towards the outdoor facilities: path to the door, driveway, garden, fence/wall, earth removal and/or addition, terrace, etc. I don’t think you would be satisfied with just topsoil, gravel, and construction debris.
You can somewhat control these costs but I would factor in a few hundred or a few thousand euros. I don’t believe anyone gives that up.

What is left then is money for a turnkey house. And with a budget of 200,000€ that is not much anymore.

Let’s assume a somewhat smaller and very cheap plot:
400sqm at 100€/sqm. (In my opinion that’s quite small and in rural Hessian hinterland, but there are modest people.)

That’s: 40,000€
plus property transfer tax: 3.5% is: 1,400€
Notary and land register about: 1,000€
Local connection fees: unknown
Development / connection costs about: 20,000
Building permit: unknown
Architect: unknown
Structural engineer: unknown
Surveying: unknown

And you haven’t even taken the first spade for the foundation slab or basement.

Then come the monthly fixed costs:

- Interest + repayment + additional costs (trash, electricity, water and sewage, possibly gas) + insurance + property tax

- then you still need something to eat

- certainly a car (insurance, tax, gasoline/diesel – and no matter how new or old a car is, it won’t cost less than 30)

- and all the other things that come monthly... phone, internet, etc.

Your monthly salary minus these minus savings is what remains for interest repayment and principal repayment. And paying off the loan isn’t insignificant.

Don’t forget the materials for the work you do yourself.

And if there is not more than 800€ per month available and you are already calculating without repayment, any sensible person will advise you against it anyway.

The 800 are with 1% repayment (exactly it was 836 euros). However, there are also 2 KfW programs included with a total of 120K, where repayment can be suspended for 10 years (and more). That would suit us very well, then the installments would be even lower. As I said, it wouldn’t be 100% but maybe 85% (because of the own contribution). That’s the calculation of the bank anyway. But with a complete self-build you certainly save more than 15%. The 800 rent we have now is already warm, the house will definitely be somewhat more expensive, but for that we won’t have to pay heating costs in the house anymore (it will be a passive house). Our income is certainly not the highest, we have only one earner and at least 2600 regularly (mostly more though). If I still earned money it would be significantly more. But since I probably won’t get a job anymore, I can at least work full-time on the construction site. That is something worth something.

What do YOU want to toil for? Are you a craftsman? Can you do all trades? Great, 10 years interest-only, it's practically a gift. But you never get off your debts anyway. Sorry, but you are a case for the auction!!! And Passive House?? Read the article "Costs for our house construction" There's nothing more to say! Have fun building yourself

That would be a Neopor house, you don’t need to brick it, it’s just plugged together. It’s purposely designed so that you can mostly help yourself. There are certain things I definitely can’t do, but just raising the walls already saves a lot compared to a conventional build. Plenty of people without prior knowledge have already done that, so it can’t be that hard.

Having a turnkey box built and delivered is more for high earners anyway. Even my father (desk jockey) built his own house back then, and it was brick. You can’t just say that if you’re not a professional, it won’t work in general.

Also regarding the auction: I said the parents have 2 houses that we will inherit at some point and then won’t know what to do with the money. Why shouldn’t you live when you’re young, the old age is secured anyway? What are we supposed to do with 2-3 houses as retirees? We don’t have anything to inherit anyway since we don’t have children. Our house will eventually be inherited by the state.

Why always so negative? I think it’s good to point out pitfalls but you can’t say that anyone earning less than 4000 net and having less than 60K equity can forget building a house. I think hardly anyone would be able to build then. Or did I misunderstand and the forum is only for super-rich? Then I would have to apologize.