Can we afford to build a house in our situation?

hello,

I wanted to ask if my wife and I could afford a house or what you think about our financial situation...whether it would be possible to build in the near future.

about us I am 25, my wife is 24, we have a 3-year-old son.
my net salary 2600 euros
her net salary 1600 euros
both tax class 4
child benefit 185 euros

currently paying 470 euros cold rent...and can save at least 1500 euros in an average month.
we currently have 44000 euros in equity.

what would you advise...to save more equity or, due to the current interest rates, take out a higher loan.

thanks for your answers

How much would the loan be?

It totally depends on how you want to live.

It's not about "if" you can afford something, but "how much" property is possible.

so with us a plot of about 1300 sqm would cost about 40000 developed. plus a house for about 300000 approximately.... so the total costs would be around 350000 euros + -.

1300 sqm for 40,000 €? Where in the deepest backcountry of Bavaria is that? In our village near the cows, the plots are cheap, but even we can't manage that.

As a very very very rough estimate: 40€/installment for 25 years for each 10,000€ credit. So for 300,000 credit, that's a 1200€ installment. As I said, only as a rough estimate. More is always possible, with under 1000€ installments you'll never finish.

Houses get more expensive year by year (more insulation), which you never get back. As I said, it's not a question of if but how much. And you have to calculate how much you want to pay each month. For 300,000€ (house + extra costs without [grundstück]) you won't get a mega palace but a 130 sqm house without a basement.

So with us, a plot of about 1300 sqm would cost about 40000 for development.

Developed only means that the connections are located in the street in front of the property. Even if they were located on the property, connection fees would still apply to you!

plus house for about 300000 approximately....
so the total costs would be around 350000 euros +/- .

No matter what size house you may consider – EUR 350,000 is certainly not the limit. Some additional construction costs, costs for painting & flooring, outdoor facilities, reserves, etc. will still be added on top ;)

Rhenish greetings