Feasibility of financing a single-family house approximately 150 m²

Good evening everyone,

for us, the time has finally come and our development plan (commissioned by ourselves) has been approved by the city council. Therefore, we are now moving on to the planning of the house and the financing. We would like to hear your opinion on the feasibility of our project.

General information about you:

[*]Who are you? W and M, wedding planned for this year
[*]How old are you? w28 and m32
[*]Do you have children? none yet
[*]Are children planned? 2
[*]What do you do for a living? She is a planning engineer TGA, he is a project manager in automation technology (job change to IT/OT field)
[*]Are you employed, self-employed, retired, housewife, househusband, etc...? both employed
[*]How many hours do you work? She 40, he from July 38

Income and asset situation:

[*]What income do you have (gross/net)? She 2,400€ net, he 2,300€, from July she 2,600€ net, he 3,200€ net due to job change (tendency rising due to advancement opportunities and collective agreement)
[*]How much child benefit do you receive? -
[*]Other transfer payments such as parental allowance, sickness benefit, etc...? -
[*]How much equity do you have? Equity (approx. 37,500€) was invested in the development plan’s preparation. (Details see previous thread). As a result, we now own 2 building plots, one of which is to be sold after the 10-year period expires and used for repayment. Through special payments and savings, another 15-20K can probably be saved in the next 1.5 years. There is still 6,500€ in investments as a buffer.
[*]How much equity do you want to invest in the house project? Everything saved for kitchen/furniture

Expense situation:
Expenses that are already included in other items can of course be omitted. This list is not final and can be expanded or summarized as needed. Please make sure to state all costs monthly, even if they only occur annually!

Housing costs:

[*]current cold rent - 390
[*]current warm rent - 560
[*]electricity - 80
[*]telephone, internet, mobile phone - 80
[*]Spotify, Netflix - 30

Mobility costs (for her car):

[*]repayment - 350€ remaining term approx. 2 years
[*]then 150 € for repairs/reserves
[*]insurance - 31
[*]taxes - 19
[*]fuel - 150
[*]ADAC - 4

Mobility costs (for his car):

[*]repayment - 350€ from July, term approx. 2 years planned (new purchase necessary due to job change, previously company car)
[*]then 150 € for repairs/reserves
[*]insurance - 31
[*]taxes - 19
[*]fuel - 100
[*]ADAC - 4

Insurance costs:

[*]private health insurance (also supplementary insurance, daily sickness benefits, etc.) - 30
[*]liability insurance (including pets) - 5
[*]capital or term life insurance - will be taken out with house construction
[*]pension insurance (also Riester, Rürup, etc...) - 350 Riester, (100 occupational pension from July)
[*]disability insurance - 282 (part of it capital-forming)
[*]household insurance - 10
[*]legal protection insurance - 19

Living expenses:

[*]groceries/drugstore/gifts/miscellaneous - 600
[*]clothing, personal purchases - 600

Savings contributions:

[*]vacation - what remains from living expenses, alternatively via bonus payments
[*]house - currently 1500 (minus 605€ for variable land loan since January) = 895
[*]house from July - 1955 (minus 605€ for variable land loan since January) = 1350
[*]retirement provision - mentioned with insurances

Other expenses:

[*]loans - 605€ repayment variable loan land
[*]other?
[*]Was anything forgotten? Then please add it here at the latest!

Income and expense totals:

[*]total income - now 4,700€, from July 5,800€
[*]total expenses - now 4,700€, from July 5,800
[*]balance - 0
[*]of which total cold rent and dispensable savings (e.g., savings rate for house) - 1890, from July 2345

General information about the property:

[*]How big is the plot? 2 plots approx. 4,500 m², approx. 1,800 m² building land, 700 m² access/green strip, and the rest forest/garden
[*]What is the land value standard? not exactly known, currently plots are sold in the town for 180 €/m² or more
[*]New building, old building (year built), house type? new building
[*]Garages? if possible double garage with workshop
[*]How big is the house? (living area / usable area) approx. 150m² living area, no basement
[*]What is the market value of the land and house after completion? - hard to estimate

Construction or purchase costs:

[*]land costs - 126,000€ incl. demolition of old nursery
[*]development costs - approx. 30,000€
[*]ancillary acquisition costs (notary, court, property transfer tax, realtor) - already paid from equity
[*]construction or purchase costs (incl. architect, structural engineer) - 350,000 (if necessary without garage)
[*]additional construction costs (e.g., house connections, soil expert, construction power, etc.) - soil report available, house connections included in development costs
[*]ancillary costs construction power, construction water etc. - 6,000€
[*]outdoor facilities/terrace, paths, garden design, fences etc... 15,000€
[*]total costs 527,000€

Other costs:

[*]kitchen costs - 15K
[*]furniture, lamps, decoration - maximum 5K, we take most with us

Cost summary:

[*]total costs 527,000€ + planned buffer of 23,000€
[*]deductible equity -
[*]financing amount 550,000€

It should also be said about the costs that we want to contribute many own services (e.g., electrical work ourselves, HVAC ourselves or via contacts, painter, flooring, garage masonry ourselves). I hope I have put everything together so that you can assess our situation :)

I think you made a mistake with the expenses :) ?

could you tell me where so that I can check it again? I don’t see it right now.

Current expenses:
Rent, electricity, internet = 750
Car Sie = 554
Insurances = 696
Living = 1200
Loan land = 605
Savings = 895

Total = 4,700€

From July:
Car expenses, BaV +605
Savings +455

Total expenses = 5,760€

House construction costs a bit low at 350,000, rather think in the direction of 400,000. I think with the salaries the whole thing is doable... Only with parental leave does it get a bit tighter...

350,000€ for 150 sqm including a luxury garage is quite ambitious. The ancillary building costs do not include the earthworks, or have you already factored those in here? Are the 30,000€ development costs based on a concrete offer or have they already been incurred? If 700 sqm is already being used just for green strips and driveway, it could be a bit more expensive. 15,000€ for outdoor facilities... might work if you are only calculating material, but it also might not. With a long driveway, you are really saving money on gravel and paving, even if you do everything yourself. From a certain scale, quite a bit of money is also required for rental machines. Since it definitely won’t be enough for the double garage with workshop, better plan for a garden shed as well. The notary will also charge a considerable fee when you register your mortgage. This point has been overlooked so far. I also don’t quite understand how much of the property you already own. A variable loan is listed in the costs for this, but no remaining debt is specified. Regarding the issue of affordability of the installment... currently a 400€ installment corresponds to about 100k credit that is repaid within a reasonable time. With 550, you end up with an installment of 2,200€. Add to that the ancillary costs for the house and you have spent almost half of the income. This can be done with 5,800€, but it doesn’t have to be. Parental leave will then also be problematic. Theoretically, you could also stretch it a bit and choose a smaller rate, on the other hand interest rates are rising and I would rather calculate conservatively as long as the loan is not finalized.