Construction project and building permit feasible?

Hello, I have been reading along here for a few days and find the collective knowledge and the expertise here very good. I searched for similar situations but found none and would therefore like to present mine in its own thread. Basic question, is a construction project feasible? And more specifically with a building permit by 12/31/2020, you probably guess why – because of the Baukindergeld. Why so short-term? Our income situation has unexpectedly improved significantly, we thought buying a house (and especially building one) would not be possible for another 5/6 years. Therefore, unfortunately, we paid cash for our new car in May 2019 (34,000 €, saved in 3 years). We thought whether paying installments now and saving less or saving more without installments would be the same over that period. Of course, regarding equity, things went more than badly in that short time – but it can’t be helped, I count it as "you learn from your mistakes." Why urgent? I hate living in rented accommodation, I want something of our own as soon as possible. Additionally, we ONLY have stress with the landlord. We live in the attic and it has been leaking for 3 years. And nothing happens. Since 2018, the rent has been reduced accordingly. But unfortunately, we don’t live happily either, and with 2 children I want to move only ONCE more. Here are our key data:

General info about you:

[*]Who are you? We are two women in a civil partnership with 2 children
[*]How old are you? I am 27, my wife is 32
[*]Are there children? Yes, 2 children and a third will follow in 2-3 years
[*]What do you do professionally? I am a nurse (have 2 permanent contracts part-time, one full-time and one 450€ mini-job. The mini-job would also gladly take me full-time anytime. They call me regularly on the part-time one. So I definitely have at least one job just a phone call away. I am studying part-time to earn more after graduation and get out of shift work. But as said, if, in the unlikely case, I don’t find anything after studying, I have enough options.) My wife is logistics manager
[*]Are you employed, self-employed, retired, housewife, househusband, etc...? Both employed, I additionally student
[*]How many hours do you work? Wife 40h/week, I currently 5h/week + studying and 2 contracts in parental leave

Income and asset situation:

[*]What income do you have (gross/net)? Wife: net 2463€ (from Oct. 2870€) I: 262€ (+1108€ BAföG + 300 € scholarship) The bank does not recognize BAföG and scholarship as income. The plan is therefore to reactivate the parental leave contract from the first due installment and increase to 1000€ net. BAföG will continue to run. The bank has assured that if a labor contract exists, the income will be considered
[*]How much child benefit do you get? 408€
[*]How much equity do you have? Currently only 6/7000€, by next year 15,000-20,000€ realistic. So almost nothing. But we are very, very good at saving.
[*]How much equity do you want to put into the house project? That is the big question. There is still an unaccounted reserve account that will not be included anywhere. Currently 7900€ with inflow of 100€ per month.

Expense situation:

Housing costs:

[*]current cold rent 700€ (reduced 652.50€)
[*]current warm rent 950€ (reduced 902.50€)
[*]electricity 50€ per month (consumption 1800 kWh per year. Living on 129.5 sqm with deduction due to slants, so 170-180 sqm)
[*]gas included in additional costs
[*]water, sewage, garbage fees, street cleaning included in additional costs
[*]phone, internet, mobile 55€/month for all

Mobility costs:

[*]monthly ticket for bus and train (also for the children!) 35€/month semester fee
[*]car loan (or savings rate for a new car) Car was newly purchased in 2019 with 7 years warranty extension and fully paid. 2nd car is from 2012
[*]insurance 78€/month - 40€/month (both fully comprehensive)
[*]taxes 40€/month - 10€/month
[*]fuel 100€/month - 100€/month

Insurance costs:

[*]liability insurance (also animals): 10€/month
[*]capital or term life insurance: 2 term life insurances I: 11€/month, she: 20€/month
[*]household insurance 13€/month
[*]legal expenses insurance 25€/month

Living costs:

[*]groceries 600€
[*]restaurants 100€
[*]care/drugstore 40€
[*]pets (food, vet, medication, stable costs) 10€
[*]medication 10€
[*]clothing 100€
[*]daycare/school fees (and meal money) from November 570€ (Currently 720€, 2 daycare children)
[*]club fees/gym 9€
[*]purchases (toys, household): 50€
[*]other: 50€

Savings:

[*]savings book (accessible anytime): 100€
[*]children: 80€
[*]otherwise we have no assigned savings rates, we always keep a buffer for household appliances untouched of about 1000€ for years. We do holidays for max. 1500€ per year. This savings rate would be suspended until holidays are possible again. House is currently savings priority no. 1. So overall savings variable between 800 and 1200€ per month. The last 4 months were for our daughter’s baptism and the purchase of 2 new rear-facing child seats. These costs will never come again. My wife has had the new salary only since 7/15/19 (permanent), so we should actually be able to put aside 1000€ more per month. But we will see that then.
[*]building savings contract: 85€+40€ advance per month

Other expenses:

[*]I can’t think of anything else

Income and expense sums:

[*]total income 3540€ (4948€ with BAföG+scholarship) / in case of working until 2021 4540€(+300€ scholarship and BAföG with deductions approx. 600€) / from Oct. 2021 AT LEAST 5000€ / in case of child no. 3: AT LEAST parental allowance: 1800€ + 2200€ (salary as nurse full-time without night shifts, so definitely more) + 612€ child benefit = 4612 €
[*]total expenses rounded: 3000€ Every single item is rounded up additionally
[*]balance 1948€ currently / 1540€ (+scholarship) / 2000€ from 2021 / child no. 3 1612€
[*]of which sum cold rent and dispensable savings (e.g. savings rate for house) 652.5€ + at least 600€ = 1252€

General info about the property:

There is no property or plot yet. I live in Saarland. Desired are about 600 sqm rather rural. Prices approx. 60,000-100,000€ developed. Cheaper is also possible depending on the village, but must be found first. Our idea: 130 sqm living space with 4 rooms + living room + kitchen/bath and guest WC with shower and utility room without basement with a maximum carport, as we drive a bus. Standard equipment, would probably include underfloor heating and smaller details. We don’t know the heating yet. No bay windows/gables/dormers. Terrace would be desirable. We need 2 bathrooms. One with shower and tub and in the guest WC still a small shower. Prefabricated house or solid (TuC), but actually prefer prefabricated house. Possible self-performance: We are ready for many things. What we DEFINITELY cannot do: sanitary connections, electrical and such stuff. So rather towards flooring, screed, painting, tiling, plastering and co. What is realistic here? 300,000€? All in? We really want to stay pretty much standard.

Questions again: Is a monthly rate of 1200€ feasible at the start? With higher salary we would rather make special repayments instead of increasing the rate, as we really like to live. Of course, there would still be quite a bit left, but I just want to theoretically have it available. At the end of the year, any leftover would be repaid. Does that make sense? Is financing at all possible with our situation? Our situation with BAföG and co is rather special. Repayment of BAföG starts in 2026 with a monthly rate of 150€ for 10 years. What worries me is that the bank currently calculates almost with 3540€ income, which is not really correct. Financially, our situation will not get worse – labor contracts exist, they MUST take me back after parental leave if I don’t quit because I found something BETTER. I am happy about every thought and every hint! The idea of building came about about 2 weeks ago by the way. We probably need a full financing if we want to build so urgently. The extra interest would then be amortized by the Baukindergeld (24,000€ for us), right? Are loans flexible? So I find a plot and general contractor, then I go to the bank and get a financing commitment and have only 10,000€ equity and 6 months later the construction starts and by then I have 30,000€ equity? Or is it really best regulated by special repayments? Does that change the interest? I really have trouble keeping up with these thoughts. Many thanks in advance and I hope someone even reads this. It’s become very long. Best regards

EDIT: It keeps happening to me ever since I have children.... I am 26

Are loans flexible? So I find a plot and a general contractor, then I go to the bank and get a financing commitment, and I initially have only €10,000 equity, and 6 months later the construction starts, but by then I would have €30,000 equity? Or is it really best to handle this through special repayments? Does that change the interest rate? I'm really having trouble keeping up with the thoughts behind this.

Um... due to the order situation of many general contractors/prefabricated house providers and a non-existent plot, I don’t expect you to even start building within the next 12-16 months.

Take your time with the topic, plan your house, which you want to live in for the next 20-30 years, carefully.

I don’t know how difficult it is to get plots where you are, but many people search for years.
That already means the Baukindergeld (child allowance for building) at the current status *is gone*, if there is no extension.

Hello and welcome,

that means you need full financing between 400k - 450k for land + new construction and all incidental costs in Saarland? With the current net income, it won't work. Your bank has said that as well.

If one income is "reactivated," it is also €3,400 + child benefit, which is taken into account. That will still be too little for the amount.

Scholarship + BAföG are not sustainable income, and BAföG also has to be repaid.

You are overextending yourselves.

Does it really take that long to get a building permit? Don’t get me wrong, we won’t rush anything. That might have been communicated somewhat poorly. But I want to get out of here as soon as possible. If the earliest possible start of construction is spring 2021, then so be it. But since our incomes consistently range between 4500-5000, the question remains the same. You know what I mean?

Are you currently under time pressure? You don't have a plot of land, so you also don't have a building permit.
Just the building permit (without a cutout) can (but does not have to, depending on the region) take 3 months.

We once discussed here whether it is possible (due to the landlord's notification of personal use with a 12-month notice period) to move in within 12 months. The OP was at a stage like yours. General statement -> impossible -> OP never got back.

Also, we read threads like yours 2-3 times a week lately!
Is 300k€ all-in budget enough, we only want standard, etc.

I know few who have managed to realistically plan the entire package (plot, ancillary building costs, house, etc.) with your level of knowledge and finance it all in one go!