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

2000€/sqm is 270,000€ Painting work and flooring 8,000€ Additional construction costs 50,000€ Outdoor facilities 20,000€ Carport/Garage ... 5-15,000 .......... Furniture, lamps, buffer including kitchen 20,000€... deduct from equity because not financeable

Why is the kitchen always excluded? That is a big item, we have included it. Before signing the loan, we specifically asked if it could be submitted, it was no problem.

Why is the kitchen always excluded? That's a big item, we included it. Before signing the loan, we specifically asked if it could be included, it was no problem.

We were told that for the bank only items that are permanently attached to the house and remain in the house in case of a move, if everything falls through, are relevant. For the bank, the kitchen is worth just as much as a sofa. Namely 0. That’s why the kitchen was not financed with our loan. Apparently, there have been problems paying out the money because of that. But the topic probably differs from bank to bank and caseworker to caseworker.

Why is the kitchen always excluded? That’s a big item, we included it. Before finalizing the loan, we specifically asked if it could be submitted, no problem.

You are right. It should be taken into account in the planning. In other words, equity or whatever (there are also installment loans) should be available here.

What does not happen is that it is calculated as value-increasing in the property.

So first of all, thank you very much for the feedback!

As I said, before we talk to banks or advisors, we first wanted to get an assessment from you experienced people. We do not intend to rush it, and if it takes another 3-5 years until it is feasible, then so be it.

As is often the case in a forum, you ask and get several opinions, and the truth lies somewhere in between. But overall, I would summarize:

The calculated budget is not far off from feasibility, but a few tens of thousands are still missing. These few tens of thousands could be the difference between "doing it" and "not yet".

Basically, it depends on the land prices; of course, it makes a big difference whether the land costs 150k or 200k. That can then mean the difference between whether it is possible or not. And that is also the point I can estimate the least. On Immoscout, you can hardly find any plots, and if you do, they are often infill plots that are very, very expensive or in very unfavorable locations. However, if you look at the standard land values for the places that interest us, you are sometimes significantly below these prices. But those prices are useless if there are no plots...

We do not want anything big; a large garden definitely has no priority, as neither of us is much of a gardener. A small lawn surrounded by (eventually) large trees is more than enough, and that’s how we imagine it. Therefore, we assume a plot size of about 450 sqm. If we find such a plot at a price of 300€/sqm, that would be 135,000€ plus additional costs. That’s why I hoped to land at around 160,000€. We know that plots at this price do not exist in places with S-Bahn connections to FFM or Wiesbaden. However, we hoped to find something somewhat further out (in the area around Idstein (+5km), for those who know it). As they say, hope dies last.

There are so many levers in financing that I find it difficult to play it all out completely. We had hoped that by starting early we could live with long repayments if necessary and accept a lower repayment rate. Often there is also the possibility to adjust the repayment rate over time and then adapt it with salary increases. Added to this is the KfW loan, which promises a significantly lower interest rate than a pure loan from just one bank. Also, there is the option for special repayments...

What we do not want is to force it and buy the thing at all costs. At the moment, we still live in a 2-room apartment. If we move, it would be a 3-room apartment. You can’t find one below 900€ cold rent in the area. Mostly, these then come without kitchen. This move is actually too expensive for us if we say we will live in a house in 3 years. Then better save the money for 2 more years and realize the dream of a house in 3 years without an expensive interim solution...

I am grateful for any input

So from my point of view, there is nothing against it. Equity is very good, and you also have a good income. I would advise you to get offers directly from local construction companies. It varies from region to region. Don’t be influenced by the opinions of strangers. We ourselves have less per month, and significantly less equity. But it is still enough to start building a terraced house in BW. You don’t have to bring home 8000 net to afford a home these days. Simply scale down the high life and many things will work.