Construction project realistic? Assessments

... it is always helpful to clearly separate.

[*]Total costs of the project
[*]Sources for payment of the total costs with determination of the upper limit of total financing.

Both values should match each other.

Making a balance of available and to-be-financed capital from the two values only brings contradictions in the process of figuring out "what do I want to build when". Because here, initially, it is about compiling all important costs, furthermore with the time perspective only in 3 or 4 years.

The basic idea with 250k€ comes from the fact that we heard that on average houses in the new development area in our region cost around 450k€ complete with land. About 130k€ of that is for the land alone including purchase-related costs, which is calculated generously, usually land is even more expensive. So in this case, the pure house construction with everything involved costs around 320k€ of course with medium standard and some own work. Of the 320k€, we can cover 120-130k with equity plus about 10k saved up to now, so we will probably be able to raise a total of 150k equity in 3 years. That’s why the pure financing amount of about 180k seemed quite realistic to us. About 50-60k can certainly be repaid early over 15 years, which should somehow cover part of the interest

So somehow your assumptions and conditions change from post to post. Your current post does not have much to do with your initial post anymore. Obviously, you want to build a house for 320,000 € and not for 250,000 €.

Your conditions are ideal. You have the land as equity and you have the condominium as equity. Your problem is the 15 years + a relatively low income. Currently that is "only" 3300 €.

My wife and I also always wanted to finish in a maximum of 10 years. Currently, with a similar financial volume, we will almost certainly not finance under 20 years. We simply welcome the relatively low installments right now, we know what to expect for a long time and still have enough income to be able to react to unforeseen events in everyday life.

Somehow your conditions and prerequisites change from post to post. Your current post no longer has much to do with your initial post. Obviously, you want to build a house for €320,000 and not for €250,000.

Your conditions are ideal. You have the land as equity and you have the condominium as equity. Your problem is the 15 years plus a relatively low income. Currently, that's "only" €3,300.

My wife and I also always wanted to conclude within a maximum of 10 years. Currently, with a similar financial volume, we will almost certainly not finance for less than 20 years. The relatively low installments are simply welcome to us right now; we know what to expect for a long time and still have enough income to react to unforeseen events in everyday life.

I know what you mean, 250 - 320 is our range, whereby €320 is the absolute limit. My husband already said that if we can't manage with €300k, then we won't build at all, because he doesn’t want to spend his whole life just paying off. But we're only at the beginning and still have to find out a lot about the actual construction costs. Somehow, we want to build and at the same time are afraid that we will financially ruin ourselves if the house still has to be paid off until retirement, and nowadays job security is really uncertain; if you're unemployed shortly before retirement, you never find work again.
After parental leave, I will definitely still get €1,000 for part-time work as well as about €500 in child benefits, and my full-time job paid €1,800.
So I think that at the start of the financing we will have almost €5,000 net, which in my eyes is not little, especially since we have no debts except for the apartment, which is completely financed through renting.

I know what you mean, 250 - 320 is our range, with 320 € being the absolute pain threshold. My husband already said that if we can't manage with 300 € then we won't build at all, because he doesn't want to spend his whole life just paying off. But we are only at the beginning and still have to learn a lot about actual construction costs. Somehow we want to build and at the same time we are afraid of financially ruining ourselves if the house has to be paid off until retirement, and nowadays job security is really uncertain; if you become unemployed just before retirement, you'll never find a job again. After parental leave, I will definitely have another 1000 euros from part-time work, as well as about 500 € child benefit, and a full-time job for me was 1800 €. So I think that at the start of the financing we will have almost 5000 € net, which in my opinion is not little, especially since we have no debts except for the apartment, which is completely financed by rental income.

If you start building "on a budget" you usually end up struggling. Every additional cost hurts a lot.

Everyone sees building "on a budget" differently and there have been many discussions about this in the forum. If I were you, I would look for a reputable builder in your region. Best to go to a new development area, look at signs, and then inquire. That way you have your price.

My husband already said that if we can’t manage with 300€ t, then we won’t build at all, because he doesn’t want to spend his whole life just paying it off. But we are only at the beginning and still have a lot to learn about the actual building costs. Somehow we want to build and at the same time are afraid that we will ruin ourselves financially if the house still needs to be paid off until retirement, and nowadays work is really not secure; if you become unemployed shortly before retirement, you never find a job again.

Of course, a self-used property immobilizes you if you get too emotionally attached to it. If not, then you just sell it. But if it’s more about the location because of friends, parents, childcare, or their schools, then it basically doesn’t matter whether you rent or own – then saying goodbye is hard; the rest is done by the realtor and the moving company.

By the way, you are currently also “paying off” a housing debt (the apartment owes you yourself and your survival) through your rent. And if you live longer than 15 years, accordingly longer.

Now, if you buy, you would fix the 900 euros and after 15 years they are completely gone. By contrast, you would still owe your housing debt to the landlord for life. And in 15 years that will probably be significantly more than 900!

Regarding financing: I wouldn’t fixate on a full repayment loan in 15 years. Either stretch it to 20 years or still have about 30% remaining at the end of the 15-year term (so about 4% repayment per year each). Couple this with a 5% special repayment option, which you should also strictly aim for every year, at least 1%, ideally more. And if it doesn’t work out sometimes, then that’s just how it is. But please use it again at the next opportunity!

Example: 230,000 over 15 years for 1.3% and 4% repayment equals 1,013 euros per month and 77,000 residual debt, or a manageable 39,000 if you special repay 1% every year.

Together with the 120,000 from the apartment sale, that would be 350,000, which should currently be enough for 140 m² without a basement on flat land. For some options, you will have to say "no" more often – but hey, even without an outdoor whirlpool, Bulthaup kitchen, and pleated blinds, a house can still be nice.

I know what you mean, 250 - 320 is our range, with 320 € being the absolute pain threshold. My husband already said that if we can't manage with 300€ t, then we won't build at all, because he doesn't want to spend his whole life just paying off.

It would be nice to know something like that down to the last euro beforehand. But that's just not the case. 20k€ are more or less a buffer that usually has to cover unforeseen, foreseeable but not calculated expenses, and "can it be a little more" scenarios, but it is not enough. Many people plan only 10k€ for the outdoor area, for example, and just with the outdoor area alone the 20k€ buffer is gone.