Financial planning for new construction with good income and little equity

Well, it's MisterDx again, juggling the numbers like in the lottery… he just expects others to put as much sweat into his house construction without calculating it realistically beforehand.

Do you think his IP ban is over?

Do you mean his IP ban is over?

No idea. Did he have one? But I only know this writing style from one person. And in terms of listing what he accomplished with his Town & Country Flair 152… also only from one person.

…and funnily enough, there is a thread here with parallels where he gives completely different recommendations
https://www.hausbau-forum.de/threads/grundstueckskauf-319qm-fuer-191-000-euro-und-hausbau-realistisch.46963/

Many good points have already been made here, so just a few minor additions:

[*]Basically, I think your income is good. What is missing is equity. If you can wait and save a little longer, that would reduce a lot of risk.
[*]Specifically regarding the financing again: the low repayment rate surprised me. With high interest rates, you actually want to be "done" as quickly as possible, and at 1,x % the term is almost endless. I consider that unrealistic and it will definitely come back to bite you at some point. Always calculate with 2-3 %
[*]You said you can include ancillary costs and kitchen in the financing request. According to my knowledge, that’s not possible, as such things cannot be paid with a mortgage loan. That would be a separate additional loan and of course increases your risk further.
[*]Additional costs / upgrades: a lot has already been said and very good examples have been given. My own experience was the same. With all providers, everything is calculated nicely based on the simplest version, while the glossy photos and show homes display the top equipment. You don’t need every little thing, but some things you will definitely want, and for other things you have no choice but to accept extra costs, e.g. if significantly more excavation and filling is required during earthworks or if the foundation slab has to be a few centimeters thicker. Here too, it is nicely calculated that the best conditions like on an absolute prime plot apply. So you definitely have to factor in a few surcharges.
[*]Regarding Town & Country as a provider, I have read very bad reviews. Of course, there are strong regional differences here because of different subcontractors. I just want to say, be careful and inform yourselves about how they are rated in your specific region if you want to stick with them.

Once again specifically regarding the financing: the low repayment rate surprised me. With the high interest rates, you actually want to be "done" as quickly as possible, and with 1,x % the term is almost endless. I think that's unrealistic and will definitely come back to bite you eventually. Always calculate with 2-3 %.

Especially with higher interest rates, you go through 1,x% repayment quickly. 1% repayment currently means a bit more than 35 years. Higher repayments only if you can really afford it.

You said you can include incidental costs and the kitchen in the financing application. According to my knowledge, no, because such things are not allowed to be paid with a real estate loan. That would be a separate extra loan and of course increases your risk further.

With a real estate loan, you can pay for whatever you want (as long as the bank agrees). Plenty of people also simply use real estate loans to obtain liquidity for free use.

Especially with higher interest rates, you quickly get through 1,x% repayment. 1% repayment currently means a little over 35 years. Higher repayment only if you can really afford it.

A 35-year term is quite a stretch. The thread starters would almost be paying off the loan until retirement. And with about 4% interest, I would recommend repaying as much as possible anyway. But in the end, everyone has to assess that for themselves.

With a mortgage loan, you can pay for whatever you want (and the bank agrees). Plenty of people also use mortgage loans simply to obtain liquidity for free use.

Well, when it comes to kitchens, all banks clearly say no with regard to the mortgage loan. Also, you often have to submit proof of use/invoices, so you can’t just do whatever you want with it. And part of the incidental costs were also clearly excluded at my bank (ING), at least the property transfer tax and notary fees.