Construction financing: Is building a house possible? Please provide an assessment

There are also financings over 100%. In my opinion, this is not sensible except for a few exceptions (but that does not mean some don’t do it). Minimum, in my opinion, one should have the equity for the kitchen, furniture, etc., as well as the incidental purchase costs. That way, it can be considered a proper 100% financing. You also have to be clear about what that means. Let’s stick with my figure of 765,000 (regardless of whether that is correct or not). You put together 100,000 equity. That leaves a financing amount of 665,000. 2% repayment, which is an absolute minimum. (In 3-4 years you will be 35. That means about 30 years until retirement… so 2% is rather tight.) 2.5% interest. With a 100% financing you don’t get the best conditions. You might want to aim for a longer fixed interest period. So 4.5% annual annuity results in around 30,000 per year. That is 2,500 € monthly installment. But that only applies if interest rates remain the same. If the interest rate increases by just 1%, that results, all else being equal, in a rate of 3,000. It’s a crazy phase at the moment, but anyone who still needs to save equity either has to put aside a hell of a lot per month, or the price increases make building a house almost impossible. In my opinion, this could get pretty tight for you. I wouldn’t get too hung up on the topic. Maybe you’re lucky and it at least starts to stagnate. If not, you should definitely have Plan B or C.

Wow, those are some great projections again. I’m sure you’ll find a general contractor who will give you a decent price. All these estimates are based on “forum experience” and if you read long enough, you’ll question that a bit more critically. Hardly anyone here has built for 2000€/sqm. Ok, yes, but then with controlled residential ventilation, 80€ tiles, photovoltaic system —> kfw40, blinds, huge window fronts (of course in wood-aluminum —> the Rolls-Royce of windows), perfectly designed garden with mature plants... as standard. I could list more here, but you can probably guess what I mean. About the equity: yes, it is modest, but I wouldn’t know what you should wait for... your construction volume will probably amount to 450-550k, but during that time you will most likely not save 10-20% equity because you still have to pay the incidental purchase costs for the plot. There are no concerns about the income and the banks will accept you, also due to the civil servant status.

Are full financings without, or with little equity as a "last resort" basically an option for this project, or an absolute no-go?

That depends on how high the amount to be borrowed ultimately is and who you ask. Here in the forum, there are many who are very critical of financing with little or almost no equity. Personally, I think it can certainly be a sensible option (especially due to the currently low interest rates) if the numbers fit accordingly... and with a full financing, you should rather calculate it three times more than if there is a lot of equity, because the risk of unexpected additional costs suddenly shaking the whole thing is simply higher.

As already mentioned, the equity is unfortunately still too low to undertake a new build in the range of half a million. Personally, I would prefer to save for another 2-3 years (or rather, live ascetically), at least until the car installment is paid off and then reassess. Of course, it is possible that everything will be 5-10 percent more expensive then, but at the moment, according to the numbers, you would not be doing yourselves any favors.

Are full financing options without, or with little equity, fundamentally an option as a "last resort" for this project, or an absolute no-go?

Have you talked to your main bank or a broker yet?

You are currently already well above 100% with the equity. The selection of banks is significantly smaller there. Also, more than 100% is always quite a bit more expensive.

Have you already talked to your main bank or a broker?

You are currently over 100% with your equity anyway. The selection of banks is significantly smaller there. In addition, more than 100% is always quite a bit more expensive.

Why are they over 100%?
If the property is bought without a realtor and they are lucky with the tax office (like we did in RLP, where we only had to pay real estate transfer tax on the value of the fully developed land).