Buying land without knowing what the house costs?

Below 4000 net and less than 60K equity, you can forget about building a house.

That is a good limit.

It is certainly possible with less, but those are often the cases that show up again in some TV soap like "My Nightmare House."

In any case, with your income, I wouldn't dare to build a house. Now the question is whether one should respect you for your decision to do it anyway or pity you for it...

OK, building the walls yourself, e.g. with Lego bricks, might save money. There was also a thread about this here once. To be on the "safe side," either 4k net income or 60k equity should be available, not necessarily both. Could it be that you are simply mistaken that anyone can build a house? There has to be enough money for it, either from family, savings/inheritance, or a high net income. Have you ever been to a professional who calculates a house for you and someone who calculates the financing?

Certainly, the risks are higher the less you have. I also have stomach pains when going into something like this with less than 20k. Just the fact that unexpected costs can arise that you haven't thought of...
Yes, I had it calculated (an appointment with a large construction financing broker with "i"). But there I could only give an approximate price for the house, as I based it on similar properties that have already been built and where the construction costs were specified (broken down). However, this is somewhat uncertain, as it always depends on the individual case. So I rounded up generously.
Besides, the bank still lacked an exact indication of what percentage the personal contribution actually makes. I have also already made contact with an isorast sales representative who also does construction supervision. But planning is only possible once it is clear what kind of plot it will be, as a lot depends on this, like whether it is a hillside or not, and the subsoil.
The plot itself can only be determined once it has at least been reserved. And for that, you really need a relatively firm commitment from the bank that the project can actually be realized. And that is where the catch-22 comes in, because they want detailed costs.
I’ve really thought about just going with a large property developer offering plot services, where you can be sure the plot is really reserved. But then you pay real estate transfer tax on both again...
In the end, it will probably come down to us saving a while longer. But it certainly won’t be 60k.

Here’s an example outside of those in my family circle, who are all not wealthy, had no or little equity, but still built and still have the houses:

If you want a construction loan from your own federal state, you’re supposed to have a net income of 2000 euros for two people. That is significantly less than we have, i.e. the wibank, which grants these loans (Hessendarlehen), therefore considers a total household income of 2000 euros sufficient to pay a 1000 euro installment in the end. For each additional child, 180 euros is enough! That is even less than the HartzIV rate for a child (220 if I’m not mistaken).
So does wibank have no problem sending young building families into the abyss or where do they get such figures from?
Only 15% equity or personal contribution is required.
Both are miles away from 4k net and 60k.

So wibank suggests that a normal earning family can build a house without large reserves, or maybe they speak from experience? Without denying that a lot of equity is ideal and high income is the best protection against garnishment, I claim ( ) that the realistic lower limit for building a house with acceptable risk lies lower than 4k net (though not exactly at 2000 for 2 people).

On the topic "turnkey":

It doesn’t have to be done by a company, but it has to be done by someone and it costs money. Or are you moving into a shell construction?

Of course, you can save money through your own work, but I still believe that with €200,000 (including land and incidental construction costs) you will never make it. Unless you build a smaller house on a small plot.

Hello,

That would be a Neopor house, you don’t need to build walls, it’s just assembled. It’s specifically designed so that you can mostly help yourself. There are certain things I definitely can’t do, but you already save quite a bit by just raising the walls compared to conventional construction. Plenty of people without prior knowledge have done it, so it can’t be that hard.

I’ve been reading here for a while and I have to say, you really live up to your nickname

It is true that with a so-called Lego house you mainly „just“ have to assemble the shells; on the other hand, you shouldn’t underestimate even that. It’s quite different from playing with Lego bricks. And regarding those other people without prior knowledge... the internet is full of them and their problems. Have you ever considered that after building the house, it goes on? That with the system you favor, you don’t just live in a plastic shell, but also in pure concrete? Percussion drill in the private workshop? And by the way – many families end up at the end of the build — with so much state support — frequently also at the end of their private relationship!

Having a turnkey box built is more for high earners. Even my father (a desk worker) built his house himself back then, and it was masonry. You can’t say that if you’re not a professional, it’s never going to work.

No one is saying that, and as for your father, I could first imagine that materials were significantly cheaper back then and secondly that one or two „neighbors“ helped him out in neighborly support?

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

From my professional experience I can tell you that this comment is not wrong. Many people like you, who believe that building a house is existentially important, end up empty-handed and the next buyer rubs their hands while the bank sits on their backs for a long time. You have, without doubt, a very tight capital cover and frankly I find it irresponsible to sell you financing; I wouldn’t do it because then I wouldn’t be able to look calmly at my reflection in the mirror in the morning. You yourself write that you will later inherit 2 houses; so why don’t you enjoy your life without debt now and save enough capital to renovate one or maybe both houses later? There is hardly a healthier way to accumulate capital and then invest it wisely

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

Your sarcasm is misplaced just because users here are trying to help you avoid a mistake. The forum motto is: Builders help builders, not wishful thinking!

There is a nice rule of thumb: for building a house you should have 20% of the construction costs as equity. This equity not only grants you better financing but also the prospect of quick repayment of the borrowed money. Unfortunately, building a single-family house is becoming increasingly expensive, not least due to the constantly rising requirements of the currently valid Energy Saving Ordinance; whether this is wise or not is another question. From an economic point of view, it is certainly true that a lot of housing construction has taken place in recent years and that there must be people to „inhabit“ this housing.

On the other hand, there is the fatal development in this country’s mindset that everyone believes they have to build a house, although it is often only possible with the support of the public (public funds). Those — and here I come back to your accusation — who earn too much to receive public funds but at the same time do not have enough equity to hire an architect or a general contractor to build their single-family house, are according to experience the losers of this societal change. They live a short-term dream of their own four walls and usually — exceptions prove the rule — end up in court or in a private soap opera, as the modern saying goes.

You write that the bank would finance you EUR 200,000 and you „only“ want to build a bungalow. Apart from the fact that a bungalow is significantly more expensive relative to a one- or two-story house, the calculation is as follows:

Financing: 200,000.00
Plot, assumed: 50,000.00
Additional building costs: 30,000.00
Unexpected: 10,000.00

Remaining: 110,000.00

Assuming you want to build a bungalow of 100 sqm – costs as a finished shell about EUR 96,000 – and further assuming we deduct a realistic 15% for state subsidies, you have EUR 28,400 left for the interior finish. How far do you think you’ll get with that – also against the background that the current burden of €800/month already brings you to the limit of what is feasible and that the above calculation leaves no room for small „rewards“ during construction?

You should think about this, then you might better understand why the users here want to protect you from your idea of building a house

Addendum:

..that is, the wibank, which issues these loans (Hessendarlehen), considers a total household income of 2000 euros sufficient to pay a 1000 euro rate at the end. For each additional child, 180 euros! That’s even less than the Hartz IV rate for a child (220 if I’m not mistaken).

I am quite sure this example is not represented correctly. Excerpt from the current garnishment table: „.. there is a maximum limit on income for all garnishable debtors, currently at a net of 3,020.06 euros. All net income above this is garnished at 100%, and from the maximum amount an amount is garnished depending on the number of dependents. For a debtor without dependents, up to 1,424.40 euros can be garnished from the maximum amount, leaving the debtor with a maximum of 1,595.66 euros....“

From this, living expenses must first be covered. All banks know these tables and include them in their calculations... so how do you want to make repayments and meet the banks’ security concerns?

Kind regards

So for the shell construction I have different data: 29K at Var**** (company) for the bungalow. Or for a normal 1.5-story house 36K, can be found under "Hausbau der Familie Kreutzkamp", for the bungalow it will surely be less, since no stairs, no ceilings, fewer windows (well, more base slab but still...). In the calculation of the Kreutzkamp family, the heating would then be omitted, as it is a passive house (instead a heat pump plus ventilation system). But even if you calculate with triple-glazed windows (which do not necessarily have to be openable = cheaper), you don't get to 96K for the shell construction.

Surely everything is speculation until the construction company calculates the final price, but I have already been shown with examples of other builders with comparable houses (although larger, multi-story) that it is possible within that price range.

I have looked at the calculation of the other threads. But if 350 euros or more are estimated for 2 washbasins... or 600 for a shower... I would spend a maximum of 50 euros on a washbasin. To be honest, I find 500 euros for ceiling paint astronomical, when there is also a can of paint for 10 euros. Well, maybe my standards are not comparable. But I think this is exactly how these extreme price deviations come about. Accordingly, you can also save a lot with modesty.

And about the house itself: to be honest, I don’t necessarily have to build. I just want a garden, nothing more. But since there are no garden apartments here and I’m not interested in "shared garden use" (there is always a neighbor who wants the lawn mowed once a week, since I keep animals, I can do nothing with golf-course lawns) the only option left is owning a house. And a life without a garden is simply not acceptable to me in the long term, since I can’t pursue my fulfilling activities (wildlife protection) otherwise. The house doesn’t matter to me, a few square meters with a lid on top is enough. The cheaper, the better, since I have nothing to give away either (as I said, no one inherits).

One more question: is it generally customary here that the tone can be contemptuous-aggressive? It is more pleasant to discuss in a friendly atmosphere. So if I wrote anything that made someone feel attacked, I apologize hereby. I am not a sensitive person, but even I notice that there is somehow a tense mood here.