Construction financing over 700k - Is the offer okay?

My personal freedom always starts with my financial freedom. I would never allow myself to become a slave to my bank or my employer for 30 or 40 years. Correspondingly, I have also oriented myself accordingly. House purchase and house construction managed without credit. Today we are very happy about that. A few hard years, certainly.

Well, for us it would have backfired. Land prices have risen by at least €100/sqm since we built, and for a comparable house we would probably have to budget at least an additional €80k. We don’t regret the decision not to wait and to finance without equity. Of course, it can go differently. However, our house also matches the income and we end up with a term of 10-15 years.

The invoice is always based on the current status. Today, €6000 net income is still a lot, tomorrow maybe not at all. I would say property tax reform. Increase in living costs, electricity and water costs, etc. If then many people have €500 more property tax per month and another €500 more electricity costs for the heat pump, and maybe another €400 for groceries, fuel prices, it will become tight for many if incomes do not rise accordingly. Impossible? I don't think so!

The calculation is always based on the current situation. Today, €6000 net income is still a lot, tomorrow maybe not anymore.
I would say property tax reform. Increase in living costs, electricity and water costs, etc.

If then for many people €500 more property tax per month and another €500 more electricity costs for the heat pump come on top, and maybe another €400 for food, fuel prices, it will get tight for many if incomes don’t rise accordingly.

Impossible? I don’t think so!

I don’t worry about such scenarios. Maybe we’ll be at war tomorrow, or I’ll die today in a car accident. Whatever. You have to live a little in the here and now.

If then for many an additional €500 more property tax per month and another €500 more electricity costs for the heat pump come on top and maybe another €400 for food, fuel prices, it gets tight for many if incomes do not rise accordingly.

Please try to stay grounded.

I know there are providers who build faster (and cheaper), but we put a lot of care into comparing the house providers and are now more than satisfied with quality and service. By the way, it’s not 160 sqm, but a little more than 140. We don’t want to make compromises in size or house quality because we’d rather pay off a house designed entirely to our needs for a longer time than pay off a lazy compromise for a shorter time.

Always remember: as long as the signature is not on the paper, they are all terribly nice and courteous. After that, it can get chaotic. Our neighbors built with Viebrockhaus. Problems were really solved quickly and wonderfully. They paid about €150k more for their place (if I deduct their extras and distribute that over the sqm). We built with Heinz von Heiden and everything was fine too, but I basically took over the construction management (I’m a control freak). You should always keep that in mind when choosing, especially when such sums are involved.

Maybe you want to start a thread with your house. Then maybe a few cost drivers can be identified and the amount reduced a bit. For example, build the masonry double garage later when there is equity again and live with a cheap carport until then.