Dream of building a house 2025/26 realistic? Currently hardly any equity, but we are fighting!

Thank you for your opinion! The question is where we will stand in 2024/2025/2026 – unfortunately, my crystal ball is currently out of order. :D A couple of friends have – for comparison – just finished. 147 sqm prefabricated house, 500k€ loan amount at 3.7% and 2,050€ monthly rate (for land + house), they brought in about 50,000 euros of equity – I have to say, I don’t find that much equity at all.

That is not much equity and also not much repayment; accordingly, it will only be finished after almost 38 years. I definitely would not recommend this as a model to follow. The goal should be to reach a term of around 25 years. At the corresponding age maybe also 30 years, but ultimately, besides the house, retirement provision must also take place. Living rent-free is not enough. In this respect, I am with SoL and see this as rather unrealistic under current conditions. However, I would not immediately throw in the towel but simply wait and see what the future brings.

That is not much equity and not much repayment either, so it will only be finished after almost 38 years. I definitely wouldn’t recommend this as a model to follow. The goal should be to get into the range of 25 years of term. At the respective age, maybe even 30 years, but in the end, a pension provision must also take place alongside the house. Living rent-free is not enough. In this respect, I agree with SoL and see this as rather unrealistic under current conditions. But I wouldn’t throw in the towel right away; I would just wait and see what the future brings.

I was also surprised about the above-mentioned conditions, but ultimately everyone has to know where they feel comfortable and where not. For me, even if currently possible, it would rather not be an option – but maybe it will work with possible special repayments! :) I also don’t know if perhaps an inheritance is expected in the future, which of course would change the situation somewhat again. Thanks for your input! We won’t throw in the towel so quickly but will first continue to repay the land as planned – if it then doesn’t work out in 2025 or whenever, it goes back to the municipality and we have "only" lost the incidental costs. But we don’t want to assume that now. :)

Currently, there are really a lot of question marks. What you could possibly do is simulate the financial burden as much as possible in advance. If you jump from, say, 800 euros cold rent to a loan repayment of 2.2k, that is very painful for many at first. But if you have "simulated" that for 2-3 years beforehand, meaning you have set aside money specifically for the house (or paid down a land loan, etc.), that already gives a certain sense of security as to whether it is manageable or if you will be unhappy with it (do you still have enough left for living expenses or do you have to dip into your savings again for other purposes like a car or something). Do you feel like you have to pinch pennies everywhere, or is it still fairly comfortable?

At the moment, I don't really see it either, but maybe you can still slowly approach the topic.

What does the forum think? Should we hold on to our dream? Or do you see no chance of it happening within 3-5 years?

Of course, hold on to it! There is nothing good except one does it. Letting go of your dreams now would be deeply sad, as you do not yet know how your situation and salaries will develop in the coming years.

My personal experience is that job changes and salary jumps often come quite unexpectedly. Sometimes at the beginning of the year you don’t know how amazed you will be by yourself in the autumn. Moreover, there are so many factors and unknowns in this equation – what will the interest rate level be in 2 years? The construction costs? Soon there may be existing houses on the market from people who once financed at 0.6% and 1% repayment over 10 years and are now flabbergasted at 4%. The market is currently in strong motion.

A little anecdote: In my early 30s, I separated from a long-term relationship. Back then, I sat crying at the therapist’s because I was convinced that by breaking up my stable relationship, I had missed any chance to live my life dream of “family, children, house, and garden.” I was already so old, and how was it supposed to work? The therapist gave me a wake-up call that it would be much more sensible to live in the here and now instead of worrying negatively about my future. He really broke a knot back then that made me become more optimistic. Today, in my late 30s, I am married, have (almost) 2 children, and we are building for the second time. Life can also be quite crazy sometimes.

What has always helped me in situations like yours to get through such phases was to actively work on the dream. For example: sorting out stuff, going to a flea market, and selling items specifically to save for the house. Opening your own savings account or investment account for it and being happy about every small amount. Or start researching – what can you do yourself? How to lay flooring? How to wallpaper and paint?

A heartfelt piece of advice: Stay on track, believe in yourselves.

I almost completely stay out of financing threads - and completely out of the question of whether certain questioners have financing chances. But in general, I like to say that I still trust those willing to build "also tomorrow" to make their building wish come true - increasingly, however, not in the form of a forever house, but in the form of a ten-year house / life phase house. So a real estate ladder in size and standard instead of a big bang uncompromising finest villa without a run-up. One thing I firmly believe is even more certain than Norbert Blüm's pension: namely that passive waiting is not worthwhile. Corona, bark beetles, Putin: if you wait for the end of one disturbance, the next one will (soon) come. You must not make your belief in your dreams and possibilities dependent on that; luck stays with the diligent. I recently read that, adjusted for pessimism, we currently have better purchasing power than sixty years ago.

Thanks, Philipp! :) Renouncing the inheritance was not possible in that form, we were also working on it through our lawyer. However, as I said, I don't want to go into the background here, I'm just glad when the topic is over and I can close the chapter.

I would be very curious to know why that was not possible. Maybe you would like to write a little about it after all.
Regarding the actual topic:

What does the forum think? Stick to our dream? Or do you see no chance at all in a 3-5 year perspective?

First of all, absolutely yes. Maybe the interest rates will be down again in 5 years. But you can't wait forever. In 5 years, retirement will be only about 30 years away.

600 € ETF savings plan (primarily intended for the planned wedding), more is currently not possible

How much do you want to spend on the wedding? Large luxury expenses are cut both short- and long-term. You need the money.

There is a desire for children (1, maximum 2), but only after a possible house is first there and we have lived in it for 1-2 years – if the finances then allow it.

Parental leave with parental allowance, daycare costs, etc. will be tough again. Will your income be enough during this time?
Maybe it is easier to have children now, and then in 5 years you will be out of the worst. Then it will also be clear how much income really exists if one of you works only part-time.