Condominium with residual debt - Is financing the purchase of land and house construction possible?

Hello everyone,

our city is currently selling a plot of land. We can very well imagine the plot and the surroundings, but now I find it difficult to assess whether the project is realistic at all.

Here are a few details:
Me: 30 years old, 4700 net, 13 salaries
My wife: currently on parental leave, planned return January 2023 about 1200 net
Children: 1 1/2 months, another expected in September 438€ child benefit

Currently we live in a 4-room condominium, 94m²: remaining debt 130000€

Equity: 40000€ immediately, 80000€ available from April 2022.

Plot: 200m2, 8 by 25m --} minimum bid 145000€

Planning: about 140-160m² living space, 2 full floors allowed according to the development plan.

Questions: Does anyone have experience with municipal allocation based on the highest bid? Is 200000€ realistic? Too high or too low?

What costs should be planned for building a house? According to various construction cost calculators on the internet, I should plan total costs of about 550000€.

I would rather not sell the condominium and plan to rent it out for about 1100-1200€.

What would financing look like?
Assuming the highest bid of 200000€
216000€ go toward the land alone. 40000€ could be used immediately as equity. The rest through financing
I think the building permit process takes about a year so the 80000€ from the fixed deposit would also be available then.
I see at least the advantage that the real estate transfer tax is only payable on the land costs, or is it different?

If any necessary information for assessment is missing, feel free to ask :)

Thank you very much!

Questions: Does anyone have experience with municipal awarding based on the highest bid? Is €200,000 realistic? Too high or too low?

That depends on the standard land value.
Our municipality sold plots with a starting bid of €300/sqm, at a standard land value of €600/sqm at that time. I know that you couldn’t get a plot for €600, but I don’t know where the limit was.
We were able to buy for €750/sqm, so somewhere between €600 and €750.
It was clear to us that we had to bid above the standard land value.

At least I see the advantage here that the real estate transfer tax only has to be paid on the land costs, or is it different?

That’s correct.

We have a lot less net income than you and manage it, so it should be possible ;-)

The BRW is €800 for 2-storey buildings and €1000 for multi-storey buildings. According to the development plan, the property thus has a reference value of €160,000.

Children: 1 1/2 months, more expected in September

Are both children from the same woman? :oops:

Are the children both from the same woman? :oops:

Hahaha! Just noticed now. YEARS! YEARS!

But this will be a semi-detached house or a terraced house on an 8m wide plot, right? Is this going to be a story like with again?