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

Yes, certainly, but it varies depending on the Sparkasse.

Yes, exactly, that's the point. At Sparkasse Leipzig it only worked with a building savings contract, at the Sparkasse in NRW it worked without.

The regional savings banks are simply independent. It can look different in the next district. Very often it is also due to regional business policies and refinancing. It can also happen that the same savings bank that still offers you something today without problems and without a building savings contract and with a long fixed interest period, only offers something with a building savings contract two months later, and when loans are offered through the bank, almost only with 10 or 15 years. This is explainable if you roughly know how banks refinance, but it would become even more off-topic. These things can happen, so that even customers with the best prerequisites go elsewhere and shake their heads because the offer was completely off the mark.

Hello everyone,

I was injured due to a car accident caused by someone else and am only now able to write again.
We have an appointment with [Interhyp] next week. Just to see what might be possible.

Hello from Enzkreis!

Do you already have news?
What did Interhyp say?

I have seen many assumptions and guesses here, but many of them are very questionable. I won’t go into that further.
From experience (in Enzkreis), I can tell you what the current situation is here (2018 / 2019).

A brief word about us:
Couple with small child
Income – very similar to what you earn
Equity – more than €10,000
Construction project – single-family house

PLOT
What I can already advise you:
Start looking for plots. What is happening here in our region is really not normal anymore. We have been searching for a long time, and I mean reeeeaaally long!!! We were close to moving far away (but still in Germany).
The prices have become unaffordable for "normal earners."
If you find something and it is publicly available, you immediately get into an auction... whether you want to or not. I tell you from experience because I have bid on many plots by now. You should define a limit (plot price) together with your bank and go into the race with it. Whether you bid multiple times or immediately offer the highest price... you can choose your own strategy.
Enzkreis is not the same everywhere... but you already know that.
The prices vary greatly and it is not uncommon for plots to be sold for €600/sqm (and upwards). People “easily” pay €800/sqm as well. I tried with listings, brokers, bank, municipality, etc. What I would still advise against: a so-called "plot service" ... no matter how desperate you are. That’s enough on the topic of plot prices although I could write a book about it.

CHILDREN
It is manageable to work full-time again (with 1 child) after a short time. The question is whether you want that. With 2 children, I couldn’t imagine it anymore. One would then have to switch to part-time. That is just my assumption. Other couples surely have had different experiences. It also somewhat depends on whether you have support (parents/grandparents) who can lend a hand when it comes to the children. That is not the case for us and everything must be well planned.

EQUITY
The more, the better ... I’m not telling you anything new here. It is also possible with 100% financing but I wouldn’t recommend it to you. You have to decide that yourself. No one can really tell you what is right or wrong. Search online for "Baufinanzierung" (construction financing). There are some calculators that are very good and you can immediately calculate all possible scenarios there.

HOUSE
Even without "frills," I highly doubt that you can manage with €300,000 (move-in ready). You have to know exactly what is offered when it says turnkey. It does not automatically mean that you can move in immediately. A semi-detached house is already priced at €350,000 and there is nothing special in it. Don’t be impressed by online prices. It’s just like when you buy a kitchen. You see something in a brochure for €2,999 and as soon as you go there and it is adjusted for your needs/spaces, you suddenly end up at €4,999. It’s very similar here. All developers are fully booked and prices have risen significantly here as well. You see what is offered online: for example, houses from the early 70s with a little plot and house starting at €500,000 upwards. At that price, they still need renovation or some even require refurbishment. I have also viewed plenty of those.

For us, it was a loooooong way and it was not easy but it was worth it. We will be building soon.
If you dream of a house, just get started and follow through. Sooner or later it will work out.

Recommendation:
- Clarify finances. Best to find a financial advisor (possibly also your house bank). It is important to have a person who knows your financial situation and responds immediately to your questions or situation.
- Be open if a good alternative shows up (apartment or older house). You can buy that and continue searching for plots. An apartment can always be rented out and “pays for itself.” You also have additional advantages with that. The financial advisor can give you valuable tips.
- Visit properties even if you might not be convinced by them. Just gain experience. Buying is often a gut decision and doesn’t always have to do with logic and facts!

Good luck and sunny greetings from Enzkreis
P.S.: sorry but I don’t know German grammar that well but you surely already noticed that )

Hello everyone, a lot of time has passed. A lot of calculations and considerations have been made. We had numerous conversations with countless providers. Ultimately, however, through a lot, lot, LOT of luck, we were able to buy a beautiful house built in 2006, which was originally built as a show home, at a good price: 9x9m city villa (140 sqm): - Living basement 2.7 m height, fully thermal insulated with underfloor heating - Basement shafts illuminated and controlled via BUS - All roller shutters electrically operated with bus coupling - Central ventilation system in all rooms of the house (Pluggit) - Network cabling in all rooms (26x Cat7 connections including in the garage and attic) - KNX bus system for controlling all electrical components - Stretch ceilings with LED spots in all rooms - Living room: ceiling-integrated screen with projector lift - Finished garage fully developed with e-charging station - 90 sqm wooden terrace, garden shed - Extras: driveway lighting, front garden lighting, house wall lighting.....

Interesting development. Does the post continue further?

How expensive did it end up being?!