Dream castle realizable with a financing amount of €390,000?

Good day dear forum,

my first post here to assess whether our dream of owning a house is possible.

First of all, about us.

I, 28 years old, assistant doctor (1st year) net income without shifts 3000€. With shifts between 3500 and 4000€ net. Each year according to the tariff a few hundred euros gross more. Without new tariff negotiations, that would be 1000€ gross more in the basic salary in 5 years. In 10 years, presumably 2000€ more basic salary.

My wife, 26 years old, studied humanities. Currently doing a PhD, 65% position – 1500€ net.

Equity: just under 130,000€. A new car due to commuting to work: 12,000€ gone. Makes 118,000€. If you set aside about 10,000€ for possible expenses, 110,000€ equity remains until the actual financing.

We want to build in the Rheingau/Taunus and Hochtaunus area. That means very expensive land prices. We hope to find a plot for 140,000€-180,000€.

We envision a house with about 135sqm. Nothing special but new and therefore new heating technology etc. We calculate 270,000 turnkey.

Kitchen 10,000€

Additional construction costs generously (?) 50,000€

That makes a total sum of 490,000€ (with land at 160,000€).

So we calculate with 500,000€ to leave a buffer.

That makes a total financing amount 390,000€.

If you now enter some data into the relevant calculators, you can already play around a bit with the installment payments etc. Without going into monthly expenses now, we think we can easily afford an installment payment of 1400 (without additional costs). I could also imagine setting a payment of about 1000€ and then making special repayments annually, which would mean initially an absurd term of 35 years, but through the special repayments easily reducing it to 25 years. If for any reason a special repayment is not possible one year, it may take longer, but I assume that at a later point I will be able to make larger special repayments.

It would be nice if you could analyze our financial situation and wishes so that we can assess whether our dreams are realizable or not.

Yes, all cool! What can you say? 20% equity, good net income, low demands on the house, and realistically planned.

You can do it that way, but some discipline is required. Basement and double garage are not included if desired. Otherwise well positioned.

P.S. Calling land prices of 160,000 euros expensive makes me smile (unless we are talking about 2000 m² or more..)

P.S. Calling land prices of 160,000 euros expensive makes me chuckle (unless we're talking about 2000 m² or more..)

And I’m gasping for air from the chuckling... but of course, it’s not comparable to our 120-soul village and a mere 54,000 bucks for 1,100 m²... :-O

I could also imagine setting a repayment of about €1000 and then making special repayments annually, which would initially result in an absurd term of 35 years,

I would now like to claim that with €1000 you are rather heading towards 45 or 48 years. Please recalculate.

We are calculating with €270,000 turnkey.

With your also in the future very good income, you should aim higher. If you eventually have an income of €8000 or €9000, a house for €270,000 (which is basically the lower limit) is significantly below your level. Will you stay in it for long then? Or you can imagine selling at some point and buying/building something more appropriate. My opinion...

Oh, I find the buffers too tight – with the total budget, I would plan at least 30-40, not 10 here and 2 there.

Statistically, hardly anyone makes special repayments. I think the term and rate should be planned realistically, and if you manage to pay it off earlier, even better.

Potential children along with loss of income should be factored into the financial plan.

Overall, your prospects are very positive, it should be achievable.

Hello, reconsider the budget for construction. A lot of hope in the prices. I know the local prices. The plot price as well as the house totally unrealistic. The plot would have to be in a small village, totally off the beaten path. Realistic is a 150-200k higher all-in budget. Regarding income, yours is good, wife probably from fixed-term contract to fixed-term contract. I think if there is a child, playtime is over, it will get tight or you will become chief physician.