Existing property or construction financeable?

But one has to be honest: with that income and in connection with the warm rent, the equity is simply pitifully low, especially since the master of the house will celebrate his 40th birthday next year. So somewhere you have massive holes in your pocket through which the money is lost. Somehow that doesn't fit with the desire to own a high-priced property or even to build a new one.

But you have to be honest: With that income and in connection with the rent including heating, the equity is just pitifully low, especially since the head of the household will already be celebrating his 40th birthday next year. So somewhere you have massive holes in your pocket through which the money is lost. That somehow doesn't fit for me with the desire to own a high-priced property or even to build new.

My thoughts ... don't want to hear TE anyway

That is just a drop in the ocean. We don’t have wealthy relatives from whom we could unexpectedly receive a windfall. 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 here in the area.
We live in an apartment without a children’s room; the child isn’t getting younger and doesn’t want less and less space over time.
No, another apartment as a temporary solution is not sensible because then we could save much less. Rent prices here are extortionate.
Honestly? Why wait?
It’s only a question of what we can afford now.

We do not intend to buy furnishing items at pharmacy prices in the hardware store. Nor do we want to move into a fully finished house. When my grandparents built, they cooked with a camping stove for a year until there was money for the kitchen. It won’t be that extreme with us, but we do not expect a full fit-out from the start.

Whether and to what extent construction prices will rise is pure speculation. A property developer from our area has been offering a promotional house again for a month now, which at the same size and equipment costs the same net as last year’s promotional house, even 3% less gross – so it’s always relative.

Why wait? Because you don’t have enough money as of today to buy a plot of land in the area you mentioned and build a house on it.

A saving rate of €15,000 per year is good, and during this time you can simply also “practice” whether you can manage with less money per month, meaning whether you can afford the installment for an appropriate property. And with every euro more in equity, you can search more relaxedly for a suitable property/developer.

Honestly: your husband is almost 40 and despite rock-bottom rent in a metropolitan area combined with a good income, you effectively have no equity. Apparently, you lead a rather costly lifestyle, otherwise more money would be available. And now trying to build and finance a house at all costs is absolutely funny to me.

I understand that hurts you and you don’t want to read what I wrote – but it’s true. My wife and I were in the same situation two years ago and desperately wanted to buy/build a house. We had already had several talks with a developer who enthusiastically offered us a semi-detached house with 110 m² living space and a 400 m² plot for €288,000 turnkey (pure house price €238,000). A bargain, we thought! The deeper we got into the matter, the more we realized that the house would not be turnkey and in the end, without special equipment and without an exterior facility, we would have ended somewhere around €360,000 to be able to move in. And no: I do not count a floor over screed and painted walls as luxury, nor a telephone line. 80% of the purchase price would have been due on signing the contract because the house was already finished on the outside. The house was completed about exactly one year after our last conversation, and the double burden of the loan and rent would have cost us almost €7,000 more.

Today I am glad that we didn’t jump in and buy immediately.

What did we do afterwards? We reorganized our finances, started keeping a household budget. We significantly reduced fixed costs and expenses for “small stuff” and at the same time stepped up work and raised our income again, thereby increasing our equity every month. That took a lot of pressure off us and we continued searching calmly and then found something suitable.

“We do not intend to buy furnishing items at pharmacy prices in the hardware store. Nor do we want to move into a fully finished house. When my grandparents built, they cooked with a camping stove for a year until there was money for the kitchen. It won’t be that extreme with us, but we do not expect a full fit-out from the start.”
Pharmacy prices in the hardware store is relative. You can certainly also order towel rails and paint from Amazon, whether that’s always cheaper and/or of the same quality is another question. I think we’re talking past each other: to me, floors on screed, painted walls, lamps on the ceiling, and a mailbox do not count as a full fit-out from the start. That is more like the exterior facility for me. But how are the things you don’t finance from the start supposed to be bought later if it’s, as in your case, completely tight? Sure, you can also sit on Lidl chairs on the terrace, but to look at an unlandscaped field for several years? Sure, you don’t have to pave the yard from the start and carry small stones and dirt into the house for years and thus test the new floors’ durability right away. All no problem!

“It’s only a question of what we can afford now.”: Definitely not a new house in your area.

But one has to be honest: with that income and in connection with the rent including heating, the equity is simply miserably low, especially since the head of the household will already be celebrating his 40th birthday next year. So somewhere you have massive holes in your pocket through which the money is lost. Somehow that does not fit with the desire to own a high-priced property or even build a new one.

The OP already comments on this in the first post. Also, that the lifestyle has already been adapted. I also had little equity, although I now earn very decently – but before that there was a lot of part-time work because of the children in the last 12 years. But, take the advice to heart that you have found an expert in your region here in the forum with . Maybe you can get more information there (exact area where to search, etc.) … but you should not be offended by the answers you have received so far. I wrote this earlier. At least the ancillary purchase costs should be available so that you don’t need a financing of over 100%. It is worth saving for that. Of course, a difference of 25% between purchase price and value according to the bank—against that you can save for a long time... Don’t write off the house you started with yet… maybe you can still negotiate with the seller. I already wrote that earlier as well.

So first of all: I find your objections quite valid and worth considering.

But here in the thread the mood has unfortunately noticeably shifted from "it is affordable, but questionable if the installments will suit you" to "forget it, you won’t make it!"

Somehow it is also due to the side discussion about the search for plots of land and existing properties, which was conducted somewhat heatedly.

A pity, since the thread was interesting to me as well.

The two now have 35,000 in equity. She does not say anything about the fact that the man has been earning well for ages. And the 35,000 certainly did not fall from the sky.

I can only speak for myself. I also cannot provide equity of 100k or more. That is because I have lived my life. But I experienced what I wanted to experience. I am not threatened with a midlife crisis in my mid-40s because I missed something.
My lifestyle has changed for several years now, since then equity has been accumulated. You don’t have to prove for over 10 years that you can manage with the money.

When I hear from some with a household net income of 3500, unfinished family planning, and quite obviously gifted/inherited 100k equity, I get more goosebumps.
Where this equity comes from is questioned in very few threads. Equity there? Okay... they can handle money!
From numerous experiences in my close circle of acquaintances, I can say exactly the opposite. Those who have worked everything out themselves usually manage money better.

Thanks to mohouse and Altai for the constructive contributions. The others seem not to have read my first post, where I clearly explain the equity situation. And yes, I felt attacked by nordanneys' formulations, unfortunately I didn't manage to remain objective. It's also simply difficult to describe a complete life situation here in just a few lines. I definitely take some advice from this thread with me, both regarding existing properties and building. We are currently actually pursuing two tracks. The search for an existing property is not yet finished and we are just starting to inform ourselves about building. I will gladly keep you updated.