Construction financing, assessment possible with income?

Good evening dear forum.

We are just at the beginning and have applied for various plots in new development areas, the chances are very good to get a plot next year. We imagine 600-700 sqm, the price is 125€ per sqm.

We would like to hear some experiences here whether this would even be possible with our income.

We imagine a city villa with a double garage, with a fireplace and 150 sqm living space, to be built in Saarland, with an architect.

General information about you:

[*]Who are you? Sascha and Nina
[*]How old are you? Both 24
[*]Do you have children? No
[*]Are children planned? Yes but still time.
[*]What do you do for a living? She is at the Bundeswehr in public service as a tax officer and planner in the office, he is a process technologist
[*]Are you employed, self-employed, retired, housewife, househusband etc...? Both permanently employed.
[*]How many hours do you work?
[*]She 40 hours 5 days
[*]He 4-shift system 7 days a week then 2 days off with 3 movable rest days additionally per month free which can be worked or stayed at home.

[*]What income do you have (gross/net)? She 2,000 net, he depends on the shifts between 2,500-3,000€
[*]Holiday pay and Christmas bonus are additional.

[*]How much child benefit do you get? 0
[*]Other transfer payments such as parental allowance, sickness benefit, etc...? 0
[*]How much equity do you have? Currently 20K
[*]How much equity do you want to invest in the house project? 20K, of which as own contribution the painting work, the floor coverings, the roof will be done by the uncle who learned roofer and is still doing this, garden fences, lawn, curbstones set by ourselves, terrace by ourselves.
[*]
The father-in-law has a construction company and will build the shell, cost-effective, the offer is available
[*]

[*]Current living situation with parents for free.

[*]Other expenses would be a leased car with a remaining term of 2 years 350€, the other one is paid off.
[*]Car insurance for the 2 cars is a total of 180€ per month
She fuel costs currently per month 150-200€
He: 50-100€
[*]Sky, Amazon 50€
[*]Accident insurance
[*]Building savings contracts 100€

[*]I hope I haven’t forgotten anything, if so you can kindly point it out, I hope for nice conversations
[*]Kind regards

[*]

And how much does the house cost?

The house will definitely cost money (what) ... the only question is, how much money? :)

Income is, I think, comparable to the general public here. With your equity, however, you will quickly be dependent on the bank and have little chance to keep a buffer. Additional costs also significantly exceed your equity. So you are definitely looking at more than 100% financing at the moment, even if it takes another year to get the plot. That will probably become a problem. On the other hand... you live cheaply and are still young. And the plot is still relatively affordable. With a total net income of 4500+, you can already save a good amount now; in your place, I would aim for €2000 per month or more.

And how much does the house cost?

Unfortunately, I can't say how much the house costs, as we are, as mentioned, still at the very beginning, since we want to build with an architect because we want to handle many things ourselves or know some acquaintances. How should I best proceed to get an approximate price?

Income is, I think, comparable to the average here. With your equity, however, you will quickly have to rely on the bank and have little chance to keep a buffer. Additional costs also exceed your equity significantly. So you are currently definitely at a >100% financing, even if it takes another year until you have the land. That will probably be a problem. On the other hand... you live cheaply and are still young. And the land is still relatively affordable. With a total net income of 4500+, you can already save quite a bit, I would aim for €2000 per month or more if I were you.

Since we have only recently completed our training, our equity is unfortunately not that high yet, but it will certainly double in a year; we are currently saving €2500 per month, and our plan was to buy the land next year if we get it and then to start building at the beginning of 2022.