Financing check - realistic or nonsense?

Calculate for a family with 2 children using a household flat rate of 2.5k. At least at the beginning of 2020, our Volksbank calculated with that, and I don’t find the value unrealistic either. Certainly, a flat rate is generalized. Some will be below it and some above (we, for example). But with vacation, children’s expenses, savings for the next car, old age, children, etc., I find the value good. And then you know what you could pay off monthly. And please calculate a realistic amount for a private retirement provision for your wife.

We discussed this with an Interhyp advisor; from his perspective, it was not a problem as long as the total household net income is correct. Do you have different information?

Yes, but the household income is precisely not correct...

We discussed this with an Interhyp advisor; from his perspective, it wasn’t a problem as long as the overall household net income is correct. Do you have other information?

The advisor just inputs a few values into the form. He can’t provide you with the actual costs for your project either. He wants to sell you a loan. And in my opinion, you will definitely have difficulties there because you don’t have an attractive location and the costs are high.

Yes, there is a green light if the household income fits, the equity and the project as well. But (together) you simply have below-average income. Two normal DINKs average around €4100. That’s the classification. And you want to handle alone what almost always takes two people today. To realize the dream of homeownership, your wife almost certainly has to contribute.

Realistically, you might get a loan of about €380,000. So with equity, you have a project framework of €540,000. For house, land, and incidental building costs. Find a better plot, smaller & flat. Then look at a solid house, 130-140m². Simpler standard, not KfW40+. So (hopefully) €2250*140€/m2 -> €315,000. €50,000 for the land. Then 20% incidental costs on both. You’re at €437,000. Then add kitchen, land, and garage. And you’re already quite close to your absolute limit.

We did that for half a year, it’s even worse..

It can’t be worse than being over-indebted with a half-finished house. And as says, there are also higher costs due to the children.
It’s simply too tight, you would need real equity of your own which you don’t have despite 10,000€ from dog breeding and a 6,000€ bonus.

The funniest thing about the air show for me is still the black-market dog breeding. Does the development plan even allow that? Things like dog hotels / breeding are only rarely approved anywhere. Usually, these are plots of land under highway bridges, where you wonder why there is a house at all when you drive by. And 10k income but no taxes paid... sorry, but that makes me choke on my laughter a bit.

Apart from that, why don't you present the whole thing to the bank you trust... By the way, your bonus is not contractually fixed, so it doesn't exist for the bank.

I wouldn't phrase it so harshly now. The advice here is meant to provide assistance in finding a solution and not to put down the questioner with a nightmare. Your budget should be sufficient for an existing property and a good renovation given the low standard land values. You can then also postpone extensions or conversions to a time when it fits financially.