Feasibility of house financing 4.6k€ net 140k€ equity

May I ask in which federal state you are building? Because of the cost per sqm. I’m not familiar with it yet.

District Bielefeld/Gütersloh/Warendorf so NRW ;) I also don't quite estimate the construction costs at 3000€/m² yet, but better to round up and calculate with more than to be in trouble afterwards...

Depending on the soil conditions, the basement is cheaper. I would have estimated the garage and garden higher. Back then, we spoke with a construction company from Rheda-Wiedenbrück, who calculated 2800€/sqm. It could be tight with 3000 €/sqm.

Do you already have a construction company? Are the areas tied to a contractor? Then the costs could possibly be planned more precisely.
Good luck!

You are still young, so a longer commitment. Basically, I would also say that the income is a bit too low, but you are young and I think it can be improved with ING. Otherwise, it would become very very tight with children.

Back then we spoke with a builder from Rheda-Wiedenbrück who had calculated €2800/sqm. With €3000/sqm it could be tight. Do you already have a construction company? Are the areas tied to specific developers?

The plots are without developer ties. We have already selected a few, but have not spoken to any yet. The aforementioned one from Rheda-Wiedenbrück is also among them. Of course, I am grateful for any further tips. I have already read the thread about construction companies in OWL.

Good morning

Equity is very good
However, income is not yet in a healthy ratio to the loan amount

BUT feasible.

The question would be, haven’t you been in the workforce for very long yet? Are salary increases expected in the coming years due to job changes? For educators, of course, this will likely be quickly exhausted.

In my circle of friends, everyone arranged their financing while they were still in their first job after university, and today, several years later, everyone earns roughly double, so that relaxes the whole situation.
And also many of my clients who bought 5 years ago, when everything was very tight, the situation today is completely different.
Especially if you are only 27 ;)

For the financing, I would recommend here:
- securing the interest rates rather long-term, so you don’t fall into the trap of having a lot of debt and suddenly interest rates at 5%
- structuring the financing so that you can perhaps adjust the rate within a range (if you get children and suddenly have more expenses, having 1000€ less income per month, this is very helpful!)
- if necessary, plan the financing so that you have a “humane” rate of 1500€ for the next 15-20 years, and after that gladly 2000€ or more (when the children are “independent” and you have two full incomes again!)
You can also rather assume that you will earn more in 15-20 years than today ;)

With their educator salary, there are hardly any more salary jumps. The next step would be to take on a leadership position. For that, one would have to study or at least acquire additional qualifications.

Regarding job change for him, I wrote further above (#10) that there is still considerable room for maneuver. You have to see what is available.