Feasibility Single-family house + land 400,000 €

Hello everyone,

we are considering turning our back on renting and building a single-family house. I have already inquired, but I am also very grateful for the answers in a forum, as these often come from builders firsthand and are usually not sugar-coated.

We are planning to buy a plot of land (max. €100,000) and construct a single-family house (foundation slab) of moderate size (max. 140 sqm). Whether prefabricated house or brick by brick remains undecided, whichever is more financially attractive. Government subsidies ([Baukindergeld] for two children, [Eigenheimzulage], [KfW]) will be tapped as far as possible. Own work is quite possible in the interior finishing (painting, floors, doors, tiles). The total volume should not exceed €400,000.

I am listing a few key points and would like to have some opinions on the feasibility. Many thanks in advance to everyone who answers.

Monthly net income (crisis-proof): €4,100
Current rent: €850 cold
Maximum installment: €1,400 (for loan repayment, ongoing additional costs come on top)
Equity: €20,000
Loan term can also be longer, as income is still secured in retirement.
In 2 years, a building savings contract with €10,000 will mature (already fully saved).
In 10 years, a building savings contract with €40,000 will mature.

If further information is needed, I am happy to provide it.

Regards
herufbay

The construction costs (incl. incidental costs) of 300k for max. 140 sqm I consider difficult to achieve.

Not feasible. You have to calculate a minimum of 2000 euros per m2, that is already 280,000. And then additional construction costs also minimum 50,000. That would be 330,000 euros. However, that does not include any garden or kitchen.

Therefore, about 100,000 euros are missing.

In Bavaria definitely not feasible. (Unfortunately) have to agree with the vanguards.

I had already thought so, but thanks anyway for your opinions. Maybe in a few years, when more equity has been built up. At the moment we can save well.

With crisis-proof income, I would currently start talking to banks and concretely explore the financial conditions. It is quite possible that in half a year relatively freshly renovated or newly built properties will come onto the market at reasonable prices. From my point of view, you would not be immoral crisis profiteers, but rather, if necessary, by purchasing fairly before a forced auction, you would ensure that others get off with just a minor loss.

And by the way, as a civil servant, I would buy or build as early as possible as soon as the equity exceeds the ancillary purchase costs + 5-10% of the total amount + a buffer for fear. Why pay rent instead of paying off?