Construction Financing - Is my financing plan realistic?

Hello everyone,

as my name already suggests, I am an absolute beginner in the field of house building and currently know almost nothing, I don’t even know all the important questions I should be asking myself yet, since I have only been thinking about building a house for a few days.

What are the very first steps if, like me, you have no idea?
I already have a plot of land and a secure job (civil servant for life). I am 29 years old and currently have a net monthly income of about 2000 euros. However, since I want to become a mother in the next 2-3 years, it will temporarily be less.

I assume that the plot of land counts as equity, right? I do not have any other (liquid) financial resources. Whether my boyfriend would participate in the financing is not yet certain. However, it is certain that a lot can be done with own labor.

I thank you in advance for answers to my rather broad question of where I have to start.

Regards

A

Well then, first get married so that in 2-3 years there is someone to pay off the loan. Until then, put aside 500 € every month so that some equity accumulates. The current income is not enough to build a house as a single person.

Hello A,

what do you really have at your disposal, how will it change,
if you fulfill your desire to have children?

What can be contributed in terms of own work (trades)?

Does your current apartment cost you anything?

Of course, your property represents a value.

Do you have any capital-forming savings running?
(if applicable, employer's contribution)

Before you can expect concrete answers here,
it would be nice if you first bring us closer to your financial status.

Best regards

Hello everyone,

Thank you already for the two responses. I know my question is very vague. However, as I said, I still don’t really know what I need to consider and whether any further thoughts about building a house even make sense at the moment. Therefore, I will try to provide some more detailed information:

After deducting all ongoing monthly expenses, I currently have about 600 - 700 euros left per month if I limit myself a bit.

I currently pay 260 euros in rent monthly (my boyfriend pays the same amount). This amount could therefore be added to the above-mentioned sum.

For almost three years, I have had a home savings contract as part of the asset-building benefits.

A lot can be contributed as personal work on the construction: I can count a carpenter, the site manager, 2 masons, and several very skilled craftsmen among my close relatives.

Can anyone assess how this financial situation, my secure job, and my still relatively young age (relatively long repayment period) look from the bank’s perspective?

Is it advisable to save for a few more years or would financing under the above financial conditions already be manageable for me?

Best regards

A

Hello A,

but you have already read what I wrote, haven’t you?

Hello Bernd Wolter,

yes, I have read your reply. I have also specified my information a bit in the hope that I will get some more concrete hints on how to tackle the whole project.

Getting married will not be a necessary prerequisite for building the house. Your advice that I should save up a bit more first is certainly convincing. The question is how much that has to be at least and how much the building plot, the job, my income situation (see above) already play a role. My question will seem naive to you, but please consider that, as I said, I have never dealt with the topic before and therefore need "tutoring" at the simplest level for professionals. ;)

Thanks and best regards

A