Financial planning for new construction with good income and little equity

It's true that for many cost points one should ideally assume a maximum.

I don't see it that way at all, and the price of 3000€/sqm living space reflects an average standard, not the maximum. It's also not like you only get DIY store quality. What does that expression even mean? A DIY store also sells expensive branded goods. Just because a DIY store targets end consumers doesn't mean the quality is inferior. But it is actually like this: if you take the sanitary fittings out of the project, you only get credited 25€. Then you have to dig deeper into your pocket to have something installed by a private craftsman at all. You don't do better that way unless you want a better standard. And you want to waive that – then you're well off with Town & Country.

Bathroom fixtures – yes, absolutely right, the stuff used for calculation is what you can find in a DIY store from 25€ per faucet or 50€ per washbasin. But hey, you have to say that you either have to live with that or replace it yourself outside the selection – according to Town & Country franchisees it is possible individually, you waive the standard faucet, get a 25€ credit, and bring a cheap Grohe for 120€ to the construction site.

It has always been like this: who buys cheap buys twice. Whether it's the house or the faucet… and you don't bring it to the construction site, you have to install it yourself. And there is no warranty then.

A new kitchen cost on average 6,500-7,500 in Germany 1-2 years ago.

But a vacation on average is also not overseas. People have gladly stayed in Germany or traveled with the caravan to the East in recent years, where many things are cheaper, unless they get a half-board offer in the basement economy room of a large Greek hotel complex at a bargain price off-season with just hand luggage. It is all relative.

It will probably be the same in this context here, as I see other standards apply when it comes to single-family house construction. But it is really very SAD. You are proud of yourself as an up-and-comer with a migration background and Hartz IV/citizen’s money parents from a ghetto panel housing estate. You look at online income calculators to see that you belong to the top 10-12% of the German population. But a decent house is apparently only possible for the top 5%. Sad. Something is wrong here...

There were other priorities before (e.g. long-distance travel). So the saving only started recently, we currently have about 10,000 EUR of equity.

I don't understand now why, if you already admitted that you had other priorities before instead of saving, you are now "complaining." That's what bites back. These discussions have been held here many times.

With my 2500€ salary at my age, I’m doing pretty badly — I did get my high school diploma, but it has backfired to go into art and craft and have had a niche job in the public sector for 20 years, where you can no longer get a foothold elsewhere. But I have always been frugal and have not blown my money on trips. At your age, my husband and I bought a used end terraced house and were thrilled. Even 20 years later I still haven't taken that long-distance trip, but instead invested my equity in building a house.

In the second case it is basically quite simple: you have 12,000€ and not a cent more and want a new car. And then you just get a Dacia in basic equipment. ...

The question is, why would you want a new car with tight capital?????

Maybe you should also reconsider your basic data yourselves:

both 34 years old, no children – desire for children ideally after building the house, in 2-3 years

Will there actually still be something with children?

Net income as basic salary 3850 & 1650 => 5500

What about the lower salary? Is there still something to be done there?

Company car and job ticket

Can the job ticket even be used at the new place of residence? Or will you need your own car after all, possibly with children?

but also to have concrete arguments for the wife who is already mentally living there…

Yes, and what I rather read there is the wish that one does not want to settle for a used property, a nice apartment, or just the tried and tested standard. But where is the reality check now? (Dacia?). Where is, for example, the townhouse idea? Starter property? What is the city villa idea for?

What about an appointment with an independent financer? Have you already had one? Have you already made an appointment? Have you had personal and direct contact with a Town & Country franchisee and a written offer? Or is there only the online exposé on IS24? Would you like to post the ID here?

And don't get me wrong: You can be proud of your achievement! That such a salary is not worth as much anymore is on the one hand of course (inflation), on the other hand a failure of our politics and successful lobbying by the rich and wealthy players...

Thanks again for all the answers. I personally now have a much better understanding of the situation and the dangers. What I will do with this knowledge - we’ll see.
Just a brief comment on this assessment:

came up several times in this thread = the mentioned income is not considered "good" in relative terms.
This will probably also be the case in this context here; when it comes to building a single-family house, different standards seem to apply as I see it.
But it is really SAD. You’re proud of yourself as an upward social mover with a migration background and Hartz IV/citizens’ money parents from a ghetto panel housing estate. You check online income calculators to see that you belong to the top 10-12% of the German population.
Yet a decent house is probably only for the top 5%. Sad. Something is wrong here...

Note: A new house. The alternative is that you buy a used house and renovate it yourself. If you don’t earn above average, that was and still is the model. A new house in a central location and without a “towel-sized” plot is exclusively reserved for the upper class; that’s how it is – and probably always has been.

Furthermore, 10-12% income probably only applies including part-time workers (mostly women). If you calculate that out, you suddenly realize there actually are many people in Germany who earn very well ;-). Probably even with 100k gross you don’t belong to the top 5%.

You’re absolutely right...

My brother-in-law starts with over 60k after his studies and pays well over 30% of his net income for his first own place relatively centrally in the city (BaWü - Stuttgart). It’s sad what a cost factor house/apartment has become nowadays, whether buying or renting.

Living in the middle of the city --> luxury
Own home --> pure luxury

Unfortunately, that’s how it is... As you can see, even the top 10% earners can no longer necessarily afford it.

The problem is that there are still enough people who want to move into the cities, no matter the cost.
That wrecks the market / it's self-inflicted. If comparatively low earners moved out of the cities, the infrastructure would collapse and apartment prices would fall because it would be less livable. But that doesn’t happen – and I don’t understand that. As a hairdresser or similar, I would definitely not live in a big city but buy an apartment in the countryside with my salary.

Top earners often have less choice because the jobs are increasingly concentrated in urban centers and less available in rural areas.

As a hairdresser or similar, I would buy an apartment in the countryside with that salary.

The joke was funny! ....What do hairdressers earn? Hairdressers earn on average about 18,000 EUR per year. That is 9.4 EUR per hour. The starting salary begins at about 1,550 EUR per month. Hairdressers with professional experience earn about 1,800 EUR per month. This is about gross income.

Assuming the numbers are correct. How does that fit with the minimum wage? Are they all self-employed or does it not apply to hairdressers? But basically, you are of course right. Except for star hairdressers and good masters with their own salon, hardly any hairdresser is likely to be a typical homeowner.

Assuming the numbers are correct. How does that fit with the minimum wage? Are they all self-employed or does it not apply to hairdressers? But fundamentally you are of course right. Except for star hairdressers and good masters with their own salon, hardly any hairdresser will be a typical homeowner.

As far as I know, the master hairdresser is the lowest paid master-level profession. It even goes so far that as a master you cannot afford to employ another staff member because there are not enough customers.