Construction project single-family house, shed roof - feedback and assessment

Hello everyone,

some time ago I posted here in the forum and asked for feedback on a construction project. Now it is the case that the framework conditions have changed somewhat, we did not implement the previous project, and we would like to start a new project. It would be great if I could get your assessment again regarding the following situation.

General situation and income

[*]Married couple, both 39 years old, married
[*]Son, 4 years old, no further children planned; the son goes to daycare
[*]He is employed, permanent contract, at the company for about 8 years, senior employee, net income with tax class 4 about 4,000 euros per month. There will probably be no further increases here, but annual inflation adjustments. In addition, about 400 euros come from self-employment. This is not guaranteed but likely and has flowed regularly in the last 5 years
[*]She is currently doing a PhD, has a mini-job and earns about 450 euros per month. This will take about 4 years. Afterwards, a part-time position is planned. The income should then amount to about 1,500 net with tax class 4
[*]In addition, there is about 200 euros child benefit per month
[*]If his self-employment income of about 400 euros / month were to drop out in the short term, she could probably increase to 20 hours / month within 3 months and generate about 1,100 euros net

Asset situation

[*]We have about 110K in cash as equity on the daily allowance account
[*]We also have 2 building savings contracts with about a total of 10K
[*]We have 2 cars, 7 years old (about 8-10K) and 2 years old (about 10K)
[*]We have no other assets, but we also have absolutely no debts
[*]We have saved the 110K over the last 6 years, with income having risen well mostly in the last 3 years
[*]Usually we save about 1–2K per month, but as said, only for about 5 years

Current costs / month

[*]Warm rent with parking spaces about 800 euros
[*]Insurances about 300 euros
[*]Mobile phone / DSL about 50 euros
[*]80 euros electricity
[*]15 euros GEZ
[*]400 euros for fuel
[*]100 euros
[*]Costs for food, clothing, vacation, but I can hardly quantify these. We have a normal lifestyle, take one big and one small vacation per year, like to eat out sometimes, but do our big shopping on the weekend at Aldi
[*]Property
[*]Purchase of a plot planned, about 600 sqm
[*]Price about 150 euros / sqm, including ancillary costs about 100K for the plot, fully developed
[*]Area is in the Westerwald, solid infrastructure, quick connection to the highway, industrial area with a very large selection about 5 minutes by car
[*]The reference land value is 100 euros, but there simply are none, especially no nice plots left in the area, so I am very sure the plot would be bought immediately (we were offered it first through a lot of networking)
[*]A solid house with a shed roof is planned, about 150 sqm, medium equipment, total costs about 350K
[*]No personal contribution planned
[*]About 50K would be added for interior fittings, i.e. kitchen, various furniture, painting work

Capital requirement, loan, repayment

[*]Total requirement about 500K
[*]Planned repayment about 1200 / month
[*]Planned special repayment per year 10K

So, I hope I have not forgotten or reported any significant or important information too inaccurately. If so, please just ask.

It would be great to get an assessment (also critical).
Thank you very much and best regards

Hi, why do you have tax class 4? Not because of parental allowance. Tax class 3 would make much more sense given your income distribution. Or otherwise 4/4 with factor.

We are (currently) not dependent on the money during the year. It basically lies dormant at 0.1% interest in the overnight money account. For that, I like the substantial refund I receive every year as part of the income tax return.

Furthermore, I do not make advance payments on my income from self-employment. The taxes incurred there can thus be easily offset.

If I switch to class 3 and still do not make advance payments, I will have a significant surplus during the year but fear that I will have to make additional payments.

If I had to repay a loan, I would probably still switch to class 3 because of liquidity.

Well, I don't like giving money to the state. But maybe 4/4 with factor would be something for you, because in the end it should result in a zero with the tax return.

Tax classes have nothing to do with gifting. Ultimately, it is just a payment method. Incidentally, the state pays excellent interest on its own tax debt to the citizens.

The tax class doesn’t matter for now. Income and equity are also fine for now.

But now the thing is
I am a bit concerned about the age. Retirement is in under 27-28 years, minus the actual start of repayment after the construction phase. The repayment rate of €1200 corresponds to 2.88% repayment. With the special repayment, it would be paid off before retirement, if that is even important to you.

How secure is it to maintain self-employment with more children? How easily can your wife find a part-time job if she doesn’t have one now, but more children are yet to come (I know, it’s phrased provocatively but not meant badly)?