Cost breakdown and financing situation (Bargain plot)

Hello dear forum,

my wife and I have been dealing with the topic of building for quite some time, but actually gave up on it last year or even two years ago due to a lack of plots.

By a "coincidence," we were offered today a single-story/square plot of about 600 sqm for a total of €80,000 (exact standard land value, location lowest south BaWü)... Now, of course, we are struggling with whether it would even be feasible for us in the current situation (construction cost boom, KFW & inflation). Unfortunately, we cannot have talks with the bank or the developer because we were supposed to have given commitments already yesterday...

I will briefly summarize here:

Us: He 35, She 27
Children: 2 (5 & 2) no more planned!
Income: €4,450 including child benefit: (He full-time, She 60% part-time – both permanent, pretty secure jobs but how secure is secure right now...!)
Equity capital: €110,000, which we can use FULLY
Rent: €980 + additional costs + operating costs
Cars: 2, both company cars and already included in net income.
Otherwise, I would describe our expenses as average. Both rather down-to-earth and not consumer people.
We eat at home and holidays in Italy are enough for us! ;)

Building plan:
150 sqm single-family house, 1.5 stories with gable roof and medium features, no basement only slab
Preferably solid construction with architect
We would do painting, floors, and doors ourselves in EL, more is possible but we do not want to calculate that for now. (Two children)

We have compiled the following costs through internet research:


Now the question for us is:

1.) Costs €646k - €110k = €536,000 – Can we even get a loan of this amount with this income?
If yes, what would you estimate as the rate, because according to our calculation more than €1,400 would be careless and of course, we would like to be finished by the age of 65-70?!

2.) Construction costs, did we forget anything or is the calculation realistic? If not, then the project is definitely off.

I look forward to your answers & please be kind. I know this is not a perfect overview but there is some time pressure.

We got a loan of 550k with an income of 4,900 EUR. However, without child benefits. Also two small children :)

From my point of view, your income is borderline for that amount. Maybe it's still possible to increase it by changing employers?

Skip the architect and build with a general contractor. Carport, kitchen, furniture are also all items that can be obtained cheaper or postponed.

Town &Country can also build houses.

If the plot suits you and you can get it cheaply: Why not. You can pay for it completely from your own capital.

Calculate everything again. Try to save on the house – maybe 140 sqm is enough? And then go for it

Hello,

so a turnkey building for 2400€/sqm in BaWü seems quite cheap to me.

We also can't manage the outdoor facilities for 10k by ourselves.

I would immediately cut the architect for that.
Also, a carport doesn't really have to be there (for now)!
You actually don't need an energy consultant without KfW funding.

I would buy the plot but build smaller and more modest.

I find the proposed loan amount too high for that income. I would recommend a maximum of 500k to you. 110 x 4500 as the maximum amount.

Earthworks might be insufficient, especially if only 10k is planned for [Außenanlagen]. Energy consultant out, building surveyor in. Carport does not/doesn't need to cost 15k. That would already be quite a luxury version. Internet connection [Telekom]: 800€. Basically, the connections [Kanal/Gas/Strom] I believe will be more expensive.

I would say that overall the total costs more or less add up if you choose the cheaper option wherever alternatives are offered. Maybe to be on the safe side, hold back more as a buffer at first. Whether banks will do that now is hard to say. So, two years ago it worked for me with almost the same amount, less income but more equity. But right now there is a lot of movement in the matter. Interest rates rose briefly, more uncertainties in the financial markets in general, stricter lending rules since the beginning of the year. Just say yes for now and find yourself a financial broker. Is there a building obligation? Otherwise, if no bank agrees immediately, buy the land with equity for now and wait until something develops. The land probably won't get cheaper for the time being.

Hello, thank you for the many answers! :) Unfortunately, there is a building obligation, which means the buyer must build and cannot resell it. We understand that some things can wait, but that does not change the fact that a carport is needed. Somewhere, various things have to be stored/tidied up. Furthermore, with 2 children and without a basement, a house under 130 sqm is already very tight. We currently live in 90 sqm, the children share a bedroom, and the apartment is bursting at the seams. But back to the main topic, my two questions were answered well: - Maximum amount = max. 490,000 loan amount - Our estimate is rather too low and should be increased or savings made on carport/general contractors. Thank you all very much for the quick and productive answers!