Dream of the house realistic? - hardly any equity

Ah sorry, I overlooked that. 3 years until construction starts or until completion?

Yesterday I had a phone call with the responsible person. Completion was supposed to be December 2022. However, he had not yet experienced with us that the plot of land would be taken back when the house was under construction. But I would rather not rely on that statement.

Such regulations are intended to prevent decades-long holding of land and speculation on value increases without development, because that is often what happened in the past. If someone needs half a year longer with good reason, the municipality usually does not wish them any harm, as long as there is serious and timely intent to build or construction activity. But yes, on paper you are taking a risk. No risk, no Home

my layman’s opinion:

Somehow make sure you get rid of the car loans. Otherwise, your financial situation looks very good, don’t let anyone convince you otherwise. The way many people act and calculate here, you won’t own property; you’ll keep paying 700-900 rent somewhere. In these times, you have to take some risks, take a chance. That goes against our German nature, but that’s why many can’t realize their dream. In Aschaffenburg, a lot of building is going on, much of it by Turkish general contractors. But why? Because they have the courage.

You have an absolutely good family income. Calculate it well, get good advice, listen to your family, and if it’s financially manageable, then just do it. You are young; by your mid-50s, you will be debt-free. You only live once; at 40, you will regret it then.

The income situation is fine. The spending behavior as well. So far, everything is good. However, the low equity could throw a wrench in your plans. Whether the bank will give you 350,000 euros in a region where the land price at 100 euros/sqm still seems comparatively moderate is a big question mark for me. It depends heavily on what similar houses cost in your area. The bank will also apply a so-called safety margin. Conclusion: It won't be easy.

Thank you for the feedback.
It looks like the planned loan of 350,000€ won’t happen.
We obtained rough cost estimates from a regional construction company and a nationwide construction company. The former quoted about 300,000€ just for the house. In addition, there is the land at around 60,000€ and additional construction-related costs,...
A consultation at Interhyp was rather superficial since we don’t have the land secured yet, and tomorrow we are going to the local bank to assess the financial possibilities. We are already curious.

We are also realizing the property purchase through a variable loan, which, however, is concluded without an entry in the land register. The loan amount is 40k and the interest rate is 1.2%. The coming year will be used for planning and in 2021 we will start construction.

We were just at the local Volksbank and only received an offer with an entry in the land register. Unfortunately, they do not do it without. In the end, we would have to pay the land registry fees when switching banks for the actual home financing, right? However, we will still obtain further offers.