Costs are rising sharply - is additional financing currently possible?

hi!

we have just started building the house. 2 full floors + basement + garage. Area per floor approx. 120m²
The plot was already available beforehand. Equity is about 280k, we have a loan of 300k (divided into 2 parts, one with 1.9% (10 years), the other with 2.4% (15 years) and a KFW subsidy of 55k.
So we have about 630k available. We want to contribute a lot of own work.

The repayment of the loan is about 1200€ per month. There are two of us (early 30s) and together we have a monthly net income of 5500€. (Each earns about the same) (which of course can be halved if children come). Currently we're not paying rent.

What I am wondering now is, what if the money is not enough? Refinancing at over 4% interest? Is that even possible at the moment? What other options are there? What is your opinion? Is it calculated too tight or will it work out?

The bank will still give you something, it will just be expensive. However, if you have miscalculated by €100-200k, it will be bad.

Whether the place can be built for that money cannot be said without details, you don't reveal much. For what price did you sign? What motivated you to build 360m² of floor space together?

A few pieces of information are missing to be able to provide a meaningful assessment.

There are a few pieces of information missing to be able to give a meaningful assessment.

Well, the first meaningful assessment is: Very large build for a very low price. So either a massive amount of personal work is factored in or six-figure cost explosions are coming for the original poster.

hi!

we have just started building the house. 2 full floors + basement + garage. Area per floor about 120m²
The plot was already available beforehand. Equity is about 280k, we have a loan of 300k (divided into 2 parts, one with 1.9% (10 years), the other with 2.4% (15 years) and a KFW subsidy of 55k.
So we have about 630k available. We want to put in a lot of our own work.

Repayment of the loan is about 1200€ per month. There are two of us (early 30s) and together we have a net monthly income of 5500€. (Both earn about the same) (which of course could be halved if children come). Currently we pay no rent.

What I am wondering now is, what if the money is not enough? Refinancing at over 4% interest? Is that even possible currently? What other options are there? What is your opinion? Is it calculated too tight or will it work out?

Repayment of the loan? So the interest will be added on top?

Basement: T€ 150
Living area: T€ 720
Garage: T€ 40
Construction incidental costs: T€ 50
Outdoor facilities + paving work etc.: T€ 30
Total costs for the house (if through a company) ==> around one million

of which T€ 280 equity + T€ 300 loan ==> about T€ 400 own labor

My opinion? Not the question if the house will be more expensive, but only by how much. You can only build the house if you completely avoid craftsmen and really do everything by yourselves. And even then it will be very tight.

Refinancing? With your income easily possible. It should also correspond to the value of the house.

We don’t have a developer and it’s also not so easy to calculate total costs when you have to hurry with the loan because interest rates rise daily. We don’t need to have everything finished immediately either, we currently don’t pay rent. Even when moving in, not everything has to be done; that can be finished over the years.

So regarding the area:
Because of the heating, which requires a lot of space, we decided on a basement. Then we wanted an office on the ground floor, so we ended up at 120 sqm. On the upper floor, 1-2 fewer rooms would be enough for us, but okay.

I would almost claim that over 600k was still very far-reaching 3-4 years ago.
By own contribution I mean: drywall, electricity, everything related to insulation, Styrofoam and Rolljet, floor coverings, painting, interior doors. Everything you can do yourself, basically.

I’m also aware that it’s not enough for the outdoor area at first either. I’m just wondering what happens if we need about 60k more. Above all, we want the repayment rate to remain the same. That means everything gets postponed, so how do the conditions worsen then? Because you don’t have an interest rate fixed for the follow-up financing, right?