Finally a plot - Can we finance everything with EFH?

New construction and land were successfully financed last month... without problems, the financing even turned out to be a bit more, about 400k

a complete success, also the living expenses and incidental costs and reserves buffer plus etc. were budgeted positively so that you can first start with the project..

It seems no one here questioned WHETHER a bank would finance you with such good equity, but WHETHER this financing is good for your salary combined with a growing family.
The bank only sees the NOW, we deliberately wanted to point out that the salary/loan ratio will not be healthy.

Many can start the project – keeping it if someone goes on parental leave or something goes differently than now is another matter.

It reads as if you took as much loan as possible without thinking about what that means.

No one here has questioned WHETHER a bank would finance you with such good equity, but WHETHER this financing is good for your salary combined with a growing family. The bank only sees the NOW; we wanted to consciously point out that the salary/loan ratio will not be healthy.

Many can start the project – but maintaining it if someone goes on parental leave or if something goes differently than it is now is another matter.

It reads as if you have taken as much credit as possible without thinking about what that means.

Hello, and many thanks for your assessment.

After searching for a house purchase/new build for 3 years, we are now finally in the process of realizing it; the new construction will start in August.

The most important thing for us has always been that with our salary / equity / and additional income we have a good foundation without eventually getting into trouble... (even if there will be children later).

Therefore, our budget plan was recorded in great detail with the financial advisor. Otherwise, we would not have taken on the project if we could not pay for the house in 3 years.

You write purely that the salary/loan ratio will not be healthy... well, that may not seem feasible to you at first glance... Well, our budget plan says otherwise... and even with my wife’s pregnancy and a salary adjustment of 60% that would initially be manageable without any problems.

We definitely have not planned to use every drop of equity for the house but still have a good amount of reserves to cover exceptional situations like unemployment, longer service outages, etc., for a longer period without any problems.

The financing is now also with KFW-153 funding, as the house meets the KFW 55 standard.

Single-family house - 175m² with double garage / turnkey / plot 566 m²

€285,000 loan - construction financing at the Allianz
€120,000 loan - KFW bank
€120,000 equity
-------------------------------------------
Term 30 years full repayment at approx. €1290 for both loans together

It’s a pity that for some it comes across as if our house planning or loan planning was without sense... but believe me, my wife and I are the last ones to want to recklessly play with this.

We both work full-time jobs with passion; every cent is earned properly... It’s clear that it is not really compensated as well as one might imagine... but it would really be a shame for the country Germany if two experienced professionals can no longer afford their own home...

(and as info, I started school at age 5 (in Bavaria) and attended school for 10 years, achieving a Realschulabschluss)

In the end, you yourselves know best what is left over at the end of the month. Most people only have their black-and-white picture in front of them and cannot imagine that there are families with a different lifestyle. If you are extremely frugal, that can work out.

If I understood correctly, you have 3540 euros available with a 1290€ installment. Additionally, there are ancillary costs of about 2€/sqm per month. So another 350€.

That makes a total burden of 1640€ / month. Then you still have about 1900 euros left for all other expenses. Whether that is enough for you can only be answered by your household budget, and I hope you don’t deceive yourselves and have also calculated parental leave and/or children.

-> We are also quite frugal and have living costs of about 2200 euros per month (cars are paid off, €350 insurance, 800€ groceries, daycare, Netflix, Prime, drugstore)

So we would not manage with your budget.

Good luck!

Most people only have their black-and-white picture in front of them and cannot imagine that there are families with a different lifestyle.

Yes, most people here only think about themselves and also do not approach the questioners empathically. Everyone here is a show-off. For example, I always immediately remove the children's rooms during floor plan discussions because I no longer need them :P

Most people only have their black-and-white picture in front of them and cannot imagine that there are also families with a different lifestyle.

I definitely agree with the sentence, but there are also extremes. And you don't have to sugarcoat those.

Yes, most people here only think of themselves and do not approach the questioners with empathy. All show-offs here I, for example, always immediately remove the children's rooms in floor plan discussions because I no longer need them

Most is not the same as all if it does not apply to you, you do not have to feel addressed.