Finally a plot - Can we finance everything with EFH?

May I ask why? We regularly look at kitchen brochures and occasionally "fall in love" with one kitchen that we can afford.

Take 2 hours and go to a kitchen studio or furniture store and have a kitchen put together for you (=make an appointment). With the size that would fit in the house, what you want (drawers, without handles, decent appliances, pull-out pantry...) etc. After that, you will have a sense of scale for whatever construction project you have.

With brochures, it’s like with your construction specification.... There are 5 things listed that are included. The 10 things that come in addition are missing. And you have to find that out yourself through research, comparisons, and (professional) advice.

Income does not match the financing. The problem is that the construction may become more expensive and there is no extra 20 or 30k here, as there is no margin in the income. Either buy an existing property or a large apartment. You will not be happy with the house. In 2-4 years you will realize that you have other desires. The problem is that there is simply no money for these. You have good equity and a solid income, but nothing high for 2 people. I would never finance such an amount with that salary...

I've been waiting for someone to write that the salary isn't enough

What is currently limiting your objectivity is your equity. That is really good for such a project and fundamentally completely sufficient. We took out €418k and also had €110k or then before/during the start of construction €130k equity, so enough buffer.

The problem is that it’s not the equity that pays off the house but your salary, and that is not designed for the entire cost structure (planned costs and even much less for unplanned costs).

I don’t know what conditions you are getting, but I suspect something around €1250 installment with 3% repayment, right? In addition, there are on average €400 monthly incidental costs. That makes €1650 for living.

That leaves €1850 for everything else. You really can’t move mountains with that, if I consider that probably still have to go out,

- €400 food
- €50 hygiene
- Car gasoline + insurance (2x €100 + 2x €40) = €280
- Leasing rate €300 (still 36 months)
- 2x €100 pocket money (canteen, café, etc.)
- 2x €100 clothing
- €200 reserves
- €200 savings rate
- €300 vacation
- €17 GEZ
- €100 Netflix, phone and co.
- x€ other insurances
- x€ consumption
- x€ eating out
- x€ children
- x€ special repayment

What I wrote above is the bare minimum to even get by.

The costs for children are not even considered yet. Sounds dumb but it’s true. Aside from the fact that then 50% of your wife’s salary will disappear.

Do yourself a favor and draw up a household budget. Get back to me with the result so we can look at it together.

The fact that the budget is not necessarily sufficient has already been written by others.
That does not mean that you won’t get an approval, at the moment everything that isn’t glued to trees gets a real estate loan. But that doesn’t mean the financing is healthy for you if the bank gives the green light.

Very good contribution from

I recommend going to your main bank to inquire about the maximum credit limit.

-Edit-

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

Find out what is still missing with turnkey. The architect fees are also definitely not included.

Was that too much honesty for the OP?