Complete invoice: how much land can we afford?

Hello,

we want to build, but we are still at the very beginning of the planning. More precisely, we are still in the feasibility study :D I want to find out how much budget we have for the property and am therefore calculating everything. Since I don’t know much, I have first made assumptions – partly based on information from this forum. I would be interested to hear what you think about it.

Key data:
- the building will take place in the Rhine-Main area
- 2 adults, 1 child (1), second child on the way, after that family planning is complete
- monthly net household income currently only mine with €4200, with child benefit then accordingly €4700
- we think that my wife will noticeably start working again in about 5 years, net household income will then increase to €8000
- we want a rather small plot (around 300 sqm), partly because of the cost, partly because we do not place too much value on it
- the property will be bought first, therefore the separate calculation

I like to play around with Excel for things like this, here is my current calculation example. What do you think, completely missing reality? Is there still room to adjust somewhere? Have I forgotten any significant item?



Best regards, Denis

PS: grey fields are calculated, white entered manually

So with these numbers it's outright suicide. €4200 net and managing €850k..

With a net household income of 4,200 euros, I dare to doubt that a bank will finance this. Child benefit is often not considered as income, and the bank does not care that your wife will also earn income in 5 years.

No bank will (hopefully) finance that for you at the moment.

I wrote it poorly, so I’ll correct it here: We currently have a net household income of €13,000. This will temporarily reduce to up to €4,700 for 3-5 years. During this phase, we will not start any financing. We currently have a financing commitment for €1.5 million; we have imposed a limit on ourselves of just over €3,000 monthly burden. What I’m really concerned about above is the calculation method / assumptions, not our financial situation or what the bank would give us.

Just under €3,300 is too much with the current net income. As already mentioned, the banks don't care what happens in five years. We already had to fight for the bank to include the wife's income in our calculation. However, we had the following situation: parental leave for another 4 months, civil servant status, confirmation from the employer that a position will be taken up in a few months, including the salary. Since you write that you are initially only interested in the plot, you could buy it with the equity capital right away and possibly pay it off until the start of construction in five years. However, I do not know the land prices in your area and therefore cannot assess whether this is realistic. What seems too low to me are the costs for the basement. I would rather calculate double that. On the other hand, I find the incidental construction costs set very high. What exactly is included in them?