Construction financing - What is possible?

Hello everyone,

Actually, I just wanted to gather a bit of information about house providers for now and only build in 3-5 years when I have saved up more equity, but all the advisors have told me that this calculation doesn't work. Land prices are rising, the houses themselves are getting more expensive, and interest rates are, of course, rising again.

The more I read the posts here, the more I see the dream of building our own home fading away, so here's a question for you who are already financing and definitely have more knowledge now and can realistically (without trying to make money) tell me how it looks.

Current equity 20,000 EUR plus about 5,000 EUR from the building savings contract + possibly another 5,000 EUR that I can save by then. But let's just assume 25,000 EUR because that is certain (I don't know much...).

I am permanently employed (unlimited contract) at a very successful large company. Probation period is over, yay :) currently net about 1,700 EUR + commission etc. in January it will be more and then again in April. So far I was always at 2,000 EUR net but here too I prefer to go with the 1,700 EUR.

My girlfriend earns about 1,400 EUR, limited for 2 years with prospects of extension.

At the beginning I thought that if we paid off 1,000 EUR I could handle that alone, but I have slowly given up on that idea. My thought is always, what if we separate, with such a large sum you simply have to think about that!

After many talks and information we came to about 340,000 EUR with land and ancillary building costs, so now let's just assume 360,000 EUR. It might be more but 360 is already a big amount and I think we can manage with that (hoping we find a plot under the planned 100,000 EUR).

So, now to you. What do you think? I would be very grateful for all tips and assistance you have! Maybe also with examples of how you did or do it with numbers...

Kind regards
Tobi

... but all the advisors told me that this calculation doesn't add up. Land prices are rising, the houses themselves are becoming more expensive, and of course the interest rates are rising again.

Sure, they want to sell as well. They are not advisors, but salespeople. Sooner or later the building craze will end, then building, existing properties, and land will become cheaper again. However, interest rates will rise, that’s true.

The question would be how much you can save in 3-5 years. Then it might be easier to assess whether it makes sense or not.

In my opinion, the previously considered financing amount does not match the income.

so at the moment I can save 800€ per month, use that to pay for a vacation or a new iMac or something :D so I think about 8000€ a year is possible!

what we/I have also considered is buying a plot of land now, even if you can't build, if everything goes well it could be sold again with a profit or is that also too much risk?

The problem here is simply the land prices. If you don't want to be too far off the beaten path, the price per square meter starts at €250.

... even if you can't build, would it be possible to sell it again at a profit if everything goes well, or is that too much risk?

If everything goes well ... and if not? And what about the costs? Not just interest, but also property taxes ... you have to mow and shovel snow ... .

My tip: Save! That would be 40,000 euros in five years. You could also secure the low interest rates for a few tens of thousands of euros through a home savings contract; I don't know what the conditions of the existing home savings contract are.

335,000 financing amount with 3100 net income is very much. We have 3400 net income and finance 275,000 euros with 1.5% repayment and thus have about 1150 euros in monthly installments. Maybe this helps you as an example.