Construction financing for a single-family house, current situation assessment, offers, etc.

Hello everyone

My girlfriend and I are planning to build a house, and I would like to hear some opinions and think that I am exactly right here, but first about us!

Me 29, her 25
Net income: me 2100, her 1700, both secure jobs
No children
Expenses: about 2200 euros fixed costs (including fuel, all insurances, groceries, eating out, etc.)
The rest remains in the account
Currently living in our own debt-free condominium
Equity: about 60k euros (but this should not appear, rather for work that has to be paid under the table, for example, and furniture, etc.)

So, about our plan
House construction, plot available approx. 1350 sqm
House bungalow approx. 175 sqm
Planned costs house approx. 280-300k
Question one: since the plot has an extremely good location and no immediate neighbors and is still location-independent, I would estimate the price per sqm at about 80-100 euros in our region. Shouldn't this positively influence the interest rate because if everything were to go wrong, the bank would have a mega house on a mega plot, or is this more or less irrelevant?
Question two: we plan about 1000 euros per month as a payment (+- 100€). Is such financing realistic for example with 300k and the current interest rates (hope under 0,XX%) or will we have problems with every bank^^?
Question three: is there only the "I submit an invoice and receive money" or "shell construction is finished, 25% of the amount is paid out" principle, or does anyone have loans that are simply fully paid out and done?

I would be happy if someone could give me tips on current financing and how the situation is right now

So it's not exactly smart to bring up illegal work right away in the first post. You will not receive tips here on how to discreetly make the money disappear in your project. To get money from the bank, appropriate proof of the completion of the work is usually required.

but they should not appear but are for work that for example has to be paid under the table

And what do you do then with the loan funds? The bank requires a closed financing. Oh yes, little equity = bad conditions. Not very smart

House construction Land available approx. 1350 sqm
House bungalow approx. 175 sqm
planned cost house approx. 280-300k
Question one since the land has an extremely good location and also no immediate neighbors and is yet location-independent I would estimate the price per sqm at about 80-100 euros in our region wouldn’t that actually positively influence the interest rate because if everything were to go wrong the bank has a mega house on a mega plot or is that more or less irrelevant?

Not 1,350 sqm are valued as building land, usually about 800 sqm. The rest with 10-20% of the value, as garden land.

Question three is there only the "I submit an invoice and get money" or "shell is finished 25% of the amount is paid out" principle or does anyone have loans that are simply paid out in full and done?

Performance (money) against counter-performance (construction status). Quite simple.

Not 1,350 sqm is valued as building land, mostly around 800 sqm. The rest at 10-20% of the value, as garden land.

Service (money) against consideration (construction status). Quite simple.

That’s not correct. For us, ING valued the full 1,449 sqm as building land. However, they used the land value as of 31.12.2019 of €120/sqm, although the market value is now over €200.

A bungalow with 175 sqm, according to own experience, will cost more than €280,000-300,000. Ours (without own contributions) costs €350,000 for 140 sqm with some special features (photovoltaic system, ceiling height 3m, electric shutters, many windows, fireplace...) and that without the incidental building costs and without the outside facilities. Including incidental building costs and outside facilities, the costs amount to about €425,000.

What will happen with the apartment? Will it also be mortgaged, rented out without land registry entry, or sold? Otherwise, calculate everything precisely. Especially if you have children and possibly then childcare fees occur. For us, childcare can cost up to €500 per child. That depends on the municipality.

How will the land registry entry look? You and your girlfriend each 50%? That wouldn’t be unimportant in case of separation, etc.

Is the plot already developed? Even if so, the price for a bungalow of that size is borderline. Even if much of the work is done by oneself or off the books. Should the condominium be sold? Also, I have to say something about the myth "the bank then gets a super expensive house with only a few debts left." First, the bank never actually gets the house; it is auctioned off, and the bank usually does not participate in the bidding. Second, the bank's profit is a smooth process until the end of the loan. Every disruption causes additional expenses that never get compensated at the low interest rates. That is why many retirees have trouble getting financing for modernizations even though the house has been paid off for years. Yes, and everyone gets an interest rate of 0.x% with no equity, little income, low repayment, and for at least 30 years ;0)

Not true. At our place, ING valued the full 1,449 sqm as building land. However, they used the land value as of 31.12.2019 of 120 €/sqm, although the market value is now over 200 €.

So not completely valued after all. The standard land values always include a reference size: e.g. 30m plot depth. The land value then refers to this. And it is not normal that someone considers 1,449 sqm as building land. It has to be a villa area where large plots are normal. In a proper valuation, only the usual building land should be considered accordingly. That is why oversized plots are always cheaper than the smaller variants. It also has to do with land utilization.