Existing property or construction financeable?

You can also negotiate with the broker. They sometimes agree to a lower commission if a quick deal is made or if otherwise no deal is concluded. Whether you want the house or not is something only you can decide. If you want it, I would speak assertively with the broker and the seller: "We want the house, but only for price X and commission Y."

Thank you very much for the many tips! We have put the house, the one it was about, on hold for now and have focused on building and gathering information.

Here I would also like to ask for your assessment: The financial advisor recommended us to look for a plot of land up to €100,000 and then plan a house for €250,000 (excluding ancillary construction costs). So aiming for a budget of €350,000.

After a brief research, I am of the opinion that within a 40km radius of Düsseldorf with good motorway connections, there are no plots of land from 400sqm for €100,000. Maybe with a lot of luck and a great deal of patience. But we do not want to spend three years searching for a plot. That means: we have to accept the prices and therefore a plot budget of €150,000 is more realistic.

This would of course mean a price of at least €400,000 (excluding purchase and ancillary construction costs). So would the bank finance us about €470,000 (including ancillary construction costs)?

Next question: We need about 140sqm of living space without a basement. We have no high demands and are happy with a standard floor plan. The house does not have to be anything special. Are €250,000 a realistic expectation here (excluding ancillary construction costs)? I have read here that one should calculate €1800-2000 per square meter. However, I have the feeling that this mainly applies to houses that almost 100% match the ideas and wishes of the builders with necessary changes that cause additional costs. What do you think? Can a standard house without frills cost around €250,000 with 140sqm? If yes, with which construction method / which provider? We are still very open there (solid construction, timber frame, etc.).

Thank you in advance for your feedback.

Best regards

After a brief research, I am of the opinion that there are no plots of land starting at 400 sqm for 100,000€ within a 40km radius around Düsseldorf with good highway connections.

Wrong research. There are plenty of plots, but rather towards 40km and not 10-20km from D. However, I have already said once that you seem to be searching incorrectly. Also check the websites of the municipalities. Everything along the A57/A40 offers you an excellent catchment area to D with high residential value.

So the bank would finance us around €470,000 (including ancillary building costs)?

Yes, whether you like the rate and want to bear it is another question.

Can a standard house without frills with 140 sqm cost around €250,000?

Yes + ancillary building costs

Presumably, you will also get this amount financed by the bank. However, I don't think you will be very happy with the installment that results.

I think you are getting yourself into something right now. Start keeping a household budget and increase your equity every month - this will also improve your position with the financing bank. Take the next one to three years and save first. Building a house now at all costs and somehow financing it will not help you in the long run.

Expenses are not limited to land, house, and ancillary building costs. You also have to put something into your house. Of course, you can take over some things from your current apartment, but certainly not everything. I am thinking of small items at the hardware store that can easily add up to several thousand euros in the end: lamps, paint, wallpaper, towel racks, light bulbs for the lamps, mailbox, ...

A tight-budget construction project will not bring you any joy.

Wrong research. There are enough plots, but rather about 40km away and not 10-20km from D.
But I have already said once that you apparently are searching incorrectly. Also check the municipalities' websites. Everything along the A57/A40 offers you an excellent catchment area to D with high residential value.

Everything already checked, including the development plans, where construction is still a long way off.
Either the plots go in bidding procedures (at unrealistic prices) or you play the lottery (applicants are about 5 times as many as available plots). The waiting lists are all exhausted for the building areas currently being developed (if the people from the first lottery round don't go to the notary).

But if you say the financing is feasible, then it’s not hopeless to keep looking. Of course, we’d rather take a plot for €100,000 if we can find one.

For a new build, I can certainly imagine our installment being somewhat higher since modernizations wouldn't have to be planned initially. Only for unforeseen events would we then have to save some money monthly.

You will probably get this amount financed by the bank as well. However, I don’t think you will be very happy with the installment that results from that.

I think you are getting yourself into something here. Start keeping a household budget *thanks, I already have one* and increase your equity every month – that way you also improve your position with the financing bank. Take the next one to three years and save first. Building a house now at all costs and somehow financing it will not help you in the long run.

That’s just a drop in the bucket. We don’t have wealthy relatives where an unexpected windfall might come from. We can save about 15,000 € per year. And how much will construction costs rise in the coming years? Probably more than that. The same goes for real estate prices around here.
We live in an apartment without a child’s room, the child is not getting younger and won’t want less and less space in the long term.
No, another apartment as a temporary solution does not make sense because then we could save much less. Rents here are exorbitant.
Honestly? Why wait?
It’s just a question of what we can afford now.

It’s not just the land, house, and incidental building costs you have to consider in the expenses. You also have to put something inside your house. Of course, you can take quite a few things from your current apartment, but certainly not everything. I’m only thinking about small items at the hardware store, which can easily add up to several thousand euros in the end: lamps, paint, wallpaper, towel rails, light bulbs for the lamps, mailbox...

We do not plan to buy furnishing items at hardware store prices like at a pharmacy. We also don’t want to move into a completely finished house. When my grandparents built their house, they cooked for a year with a camping stove until there was money for the kitchen. It won’t be that extreme with us, but we don’t expect a fully equipped house from the start.