Construction project 400k: How much to add floors?

I am glad about the lively discussion, but we are slowly starting to stray a bit.

Am I correct in understanding that basically
1. everyone unanimously advises against planning a higher budget?

2. significantly better conditions are only to be expected with 40% equity, where realistically I will not reach that even in 5 years?

Do you even see any possibilities to realize the construction project?

Best regards

No, even with a 90% or 80% loan-to-value ratio, the conditions are significantly better than with a 110% financing.

Basically, it’s like this: you have €4300 available per month, from which the bank deducts €1000 for the first person in the household, and €400 each for every additional person as a flat rate to cover general living expenses. (Varies from bank to bank, but basically it’s like that). For each car, another €500 is assumed, plus any other fixed obligations such as alimony or similar, if applicable.

Let’s assume you don’t have those.
So at first, you have €2000 per month left for the property. The bank then deducts a flat rate for incidental costs, which would be e.g. €360/month for your modest 120 m².

Now we have €1640/month left for financing. Since you don’t want to calculate too tightly, let’s assume you are willing to pay up to €1400 per month as an annuity.
Assuming you can actually keep the total costs at €400k (which is very unrealistic), you would at least have to cover €33k for incidental costs yourself.
With a 100% financing, 30-year fixed interest rate, 30-year term as a full repayment loan, you ideally get 3.24% interest and have a monthly rate of €1740.

So no, with the current income situation a higher financing is probably not feasible.
The land is simply too expensive.
So either go somewhere cheaper or accept less land, i.e. a semi-detached house or even a terraced house.

Regarding the fixed interest rate discussion: Knallkörper is right, Germans really like security, which is why there is a suitable insurance for everything and everyone here. It is a very personal decision which risk one is willing to take. The 80% security is often financially much more sensible than 100% security. Many people still want it and pay the surcharge. Both are justifiable, everyone has to decide for themselves.

Knallkörper did you take a short fixed interest period and now regret it?

I think it is exactly as follows:


Kunze Only rich or stupid people take short fixed interest periods.

According to your calculation, we would be deeply in the red. And we're not, neither with the bank nor in reality. It was totally easy for us to get financing.
The volume is smaller, but with just people and cars we had almost used up my salary. And my wife with parental leave and parental money doesn't really make much difference.
Regarding the fixed interest period: we also took ten years and set the repayment at 3%. My salary as a civil servant is sure to rise. And I expect a slightly higher interest rate than now. If interest rates explode, I was unlucky. It just becomes more expensive. But I simply don't believe that. Too much will still depend on low interest rates in the near future.