Finally a plot - Can we finance everything with EFH?

Hello dear house building forum, I have been following this forum undisturbed for several years, quietly reading and keeping silent.

After a long search for a suitable house or plot of land, we have apparently reached our goal.

Through a real estate agent, we have now pre-reserved a 566 m² plot of land that is tied to an architect. We have already had the first conversation with the agent about the framework conditions.

But now of course the financing is also in the background, whether we can finance everything at all. Land and house construction with incidental costs. I would like to hear your assessments and experiences, whether our approach is just a dream or whether we can also live it.

First about us: married couple (She 28, I 33) both tax class 4

Income: She (permanently employed for 15 years by a doctor): €1760 net

I (since 2018 in the public service, about 6 more months with fixed-term, after that permanent) income €1780 I gave up my position after 18 years at the company due to moving to my wife who lived 200 km away.

We both currently live in my wife’s uncle’s house, where a whole floor is free and we only pay incidental costs of €350 per month for 90 m².

I myself still have a leasing contract that runs for 3 more years for €330 per month including car insurance.

We have equity of €105,000.

The 566 m² plot costs €84,900 and will be developed additionally with €16,900 and incidental costs of €11,461 – total costs of €113,341.

As a building project, we have planned about a 160 m² single-family house.

Construction costs are planned at about €300,000 plus about €50,000 incidental construction costs – plus kitchen, terrace, etc. another €20,000 – total costs €370,000.

Land + building project = €483,000 – €105,000 equity = €378,000 to finance.

We have to honestly say, we actually have never dealt with such a financing sum let alone financing before...

so absolute beginners...

We have an offer from the architect for a model house that he offers for €313,000 for 166 m² with 5 rooms and upscale execution.

However, 150 - 160 m² would be sufficient for us so that a little more money can be saved. The current price per m² is between €1885 and €2000.

We would be very happy to hear from you!

Any help – tips and information – are worth their weight in gold to us!

Thank you very much!

By linking to a construction company, the real estate transfer tax becomes due on the entire property.

Due to the commitment to a construction company, the real estate transfer tax is payable on the entire property.

The broker clearly stated that the land and the house construction are calculated separately. In other words,
the real estate transfer tax is paid together with the land.

You always write about a commitment to an architect. Do you mean a developer? Is that contractually fixed? Then, as already mentioned, quite high real estate transfer tax will be due. Otherwise, equity is pretty solid but salary could be more generous. Hmm borderline. Costs are also calculated quite tightly. Did your girlfriend already start working at 13?

Do not trust what the broker tells you. He is not liable for anything and gets off scot-free. The tax office looks very closely at things like that.

Don’t trust what the real estate agent tells you. He is not liable for anything and comes out clean in the end. The tax office looks very closely at such things.

Hi, thank you very much for the information. The real estate agent, together with a partner, bought a building site with 15 plots of land that are offered together, each with an architectural commitment.

The architect designs a plan that will be carried out by a construction company selected by one of the buyers and the architect.

However, the plots of land are sold separately on the invoice, so the real estate transfer tax only applies to the land, which is why there are no difficulties with the tax office.