Financing / costs of the construction project realistic?

We would generally first like to get an assessment of the feasibility of our project, whether it is even realistic (financing possibility of the construction project, realistic cost estimate from our side). We hope that all the points mentioned provide a good overview and are already sufficient for a first statement.

General information about you:

[*]How old are you? 29/27
[*]Do you have children? No
[*]Are children planned? Yes, within the next 5 years
[*]What do you do professionally? Quality assurance technician / administrative specialist
[*]Are you employed: Both employed
[*]How many hours do you work? 35h / 39h

Income and asset situation:

[*]What income do you have (gross/net)? €5,200
[*]How much equity do you have? €40,000
[*]How much equity do you want to invest in the house project? 100%
[*]Paid-off condominium (value: €450,000 / €850 cold rent possible) -> sale not yet possible

Expense situation:

[*]monthly expenses for the entire household of €2,500 (incl. leisure, insurance, retirement provision, car, etc.)

Total income and expenses:

[*]Total income: €5,200
[*]Total expenses: €2,500
[*]Balance: €2,700
[*]of which total cold rent and dispensable savings contributions (e.g., savings rate for house): €0 (since condominium)
[*]monthly loan installment of €2,000 planned

General information about the property:

[*]How large is the plot? 436 sqm
[*]Planned single-family house with a size of 130-140 sqm, start planned in approx. 3 years
[*]Location: between Augsburg and Munich

Construction or purchase costs:

[*] : €211,000, fully developed (incl. land transfer tax, notary costs) -> already deducted from equity, therefore negligible in the calculation (so far only reserved, purchase possible)
[*]Total house costs incl. house ancillary costs: €550,000

Other costs:

[*]Furnishing, outdoor facilities: €50,000

Cost summary:

[*]Total costs: €600,000
[*]Deductible equity: €40,000
[*]Financing amount: €560,000

Do I understand correctly, you have a net income of 5200, a paid-off condominium worth 450,000, and the land worth 211k can be paid from equity, leaving you with 40k left? There isn't much to say except: have fun building.

Do I understand correctly that you have a net income of 5200, a fully paid-off condo worth 450,000 and the land worth 211k can be paid from equity and you still have 40k left?
There’s not much to say except: have fun building.

Well, everything looks good, but they won’t manage the 2,000€ installment.

560k€ at 4% interest and 2% repayment means a comfortable 2,800€ installment.
That’s surely possible somehow, but I would sell the condo if possible to reduce the installment.

The asset situation is great, income situation rather not so much for the financing needs...

You can rent out the condo once it’s paid off and put the money toward the installment. Depending on the rent, it’s possible.

Well, I also see the Nachwuchs critically. When he comes, the debt service will become even more critical.

Rent of the condo seems very low compared to its value, I would sell the condo, that would relieve everything immensely.