Construction financing in a few years

We (2 parents, 2 children) have been living in the USA for several years, with a short interruption. Our oldest will soon start school, and we are considering whether we see our future here or "back home" in Germany. We would prefer not to move him into a completely different system in the middle of his schooling later on, and therefore think we should plan long-term now. Many factors play a role, but also whether it will be feasible to finance a house. So we are considering different scenarios, whether we plan to move now, in 4 years (after elementary school), or maybe not at all. I earn quite well here, which would probably still be decent but significantly less in Germany. We were already temporarily back in Germany for a year, during which time I earned 5,700 EUR net. That was 4 years ago, but compared to that is a US salary of currently about $10,000. However, our costs in the USA are also high, for example we currently pay $4,000 cold monthly rent for our house.

We have been away for a long time and therefore would not want to buy immediately even if we decide to move back to Germany now. Nevertheless: we are both 35 years old and do not want to wait too long. Maybe after 2-3 years following the move, buying could be considered.

The question is whether that will at least potentially be feasible. We currently have just under $70,000 net in a US pension which I would cash out in case of a move. In addition, there is property like cars, but we ignore that. Currently, an additional $40,000 per year would come in as long as we stay in the USA.

That means our starting point will probably be (assuming we save 1,500 EUR monthly in Germany):

[*]Move now: $70,000 + 2 years in Germany = house construction at 37 and about 100,000 EUR
[*]Move in 4 years: $230,000 + 2 years in Germany = house construction at 41 and about 245,000 EUR
[*]Never move: No house construction in Germany

Assuming we end up at 5,700 net as a few years ago – is building a house with 100,000 EUR capital in 2022 utopian? Of course no one knows how interest rates and the economy will develop, but we want to make as informed a decision as possible nonetheless.

Thank you in advance for your opinion!

That certainly depends on where and what is going to be built. Your current house at $4000/mo probably isn’t a social housing unit? Maybe downsizing will take place.

Well, it is and remains speculation how the next few years will unfold. Building a house will definitely not become cheaper. Buying a house might, though. But I don't expect it to happen within the next 10 years.

Whether you want to move back to [DE] is something you have to decide. Can you live with the German system? Your salary now seems rather unproblematic to me. Not overwhelmingly high, but also not skin and bones. Building a house is doable if you don't go overboard. The equity of 70k $ is certainly not bad either. In 4 years, it would of course be even better.

However, if I were to move to [DE], I would do it now and let the children start their school careers here. Not only after elementary school. That way they are immediately in the performance system and don't have to laboriously adapt in 4 years.

How come your income is very high, but equity is more or less nonexistent? So why can you save 40k now, but never before?

How come your income is very high, but equity is more or less non-existent? So why can you save 40k now, but never before?

I thought that at first too. Often apples are compared to oranges. 10k dollars vs. 5,400€ but then paying 4k for rent. What still comes off the 10k? Health insurance, pension, etc.? The social system over there only exists for hefty payment.

How come your income is very high, but equity is more or less non-existent? So why can you save 40k now, but never before?

What’s it to you? And what does that have to do with anything?