Construction financing - mortgage instead of equity?

No no, don’t misunderstand. I think it’s great to finance a house. You just have to be aware of various risks and, if you want, cover yourself with insurance. And you should be aware that under certain circumstances like separation, alimony payments, etc., you simply can no longer maintain a house alone and it must be sold. That’s just how it is.

From this perspective, full financing is totally okay, but there is the additional risk that in a (distress) sale within the first years, you will be left with a mountain of debt. That’s the contrast to having enough equity. The equity is gone then, but after the emergency sale you are still debt-free.

I would actually prefer to save for four or five more years and then enter the race with 50,000 euros more equity. But there are several factors that (in my eyes) argue against this:

- the costs for all construction projects, plots of land, and existing buildings are exploding here way beyond any measure, so I cannot estimate whether the 50,000 euros will be worth anything in four or five years at all
- I would like to lock in the current interest rates, for at least 15 years (which would also fit our plan so that I could work part-time again by the end of the term and the risk would be manageable)
- availability is actually the biggest problem here. “Looking for a plot” doesn’t mean anything here; you can wait six years for a plot and still not get one (within the framework of the locals’ model). If we don’t do it now, even though it’s perfect for us both in terms of location and features and design, it is quite possible that nothing comparable will come up for ages (if it ever does)

What do you generally think about our rate? Is it overall too risky and are we basically “playing” with my parents’ house?

Just for orientation: Together we earn around 4,800 euros net, but out of that, almost 500 euros go towards 2 private health insurances. The rate that the Interhyp advisor is currently assuming is 1,160 euros, which would be a mixed interest rate of 0.91% with the contribution of almost 10,000 euros equity capital and the 50,000 euro land charge and a fixed interest period of 15 years with a 5% special repayment option.

Even during parental leave (as long as nothing happens) there will always be over 4,200 euros "available" – and if that is not enough, then I just have to work 6 hours. That will add another 400 euros. (Long live the civil servant life )

I would first check if everything is really included in the 430,000. Don’t want a five-digit additional remodeling cost later because, for example, the electrical system corresponds to the state of 1975.

Personally, would advise, income borderline. It should be feasible.
Mortgage from parents a no-go

Personally, I would say the income is borderline.

Unfortunately, I do not understand the sentence.

With "looking for land" there is nothing here, you can wait six years for a plot and still not get one

Can't you buy the land now and start paying so that you can continue to save equity until the final planning/implementation and the land is also counted as such?

It is doable - but for me it wouldn't be anything. 4,800 minus health insurance, minus installment, minus additional house costs, personally that would leave me with too little. Others manage with the remainder for living expenses, savings, etc.