Financing for a single-family house, is it realistic?

Only notes:

1. I think you overestimate your own contributions.

2. Planning a mortgage on the parental home and at the same time losing a salary (children) would be an absolute no-go for me.

3. I believe that with living expenses, a rate of 1,500 would be tight, especially with children.

I would wait until there is more equity or see if it can be done smaller.

Always choose financing so that it can be handled by one partner alone without significant pain or restrictions. Anything else is Harakiri. And under no circumstances plan on Christmas bonuses or possible salary increases. Always assume the worst case. Then you are on the safe side.

My girlfriend and I are basically in the same situation and decided against a new build because it is simply too expensive. Now we have bought an old house cheaply that we are renovating. And the installment for the loan is significantly lower.

And think carefully about including the parental home in the loan. In the worst case, both houses will be sold.

Hello,

I can only agree with the previous speakers!
negative
- Independent work is too vacant
- Children & half income should be included
- The mortgage on the parents' house should be well considered. Usually, this causes the biggest trouble later on.
positive
- probably good salary development
- possibility of Sunday work (shift?) Although it should be said here: If you work hard and children come, when do you have time to see the children..........

How secure is the income from the small business?
Just 250€ net per day on Sundays?

How much free time do you currently have? How important is it to you?

I ask these questions because, based on your income without these variable amounts, I cannot recommend a loan higher than 250,000€ to you.
That is the amount you can still manage alone in an emergency.

Your wife now earns 1,400€, from the first child it is only about 800€ parental allowance. After that, it gets even less, and with the second child you can forget about your wife's salary.
You are not married yet, probably still have to invest a few more euros in the wedding, and have all the time in the world to build.
Currently, construction interest rates are low, right: BUT construction prices are outrageously high. Just like the land prices.
I think if you save hard for another 2-3 years (a savings rate of 25,000€ - 30,000€ should be possible for you) you will have a strong equity cushion. This will get you significantly better conditions, which will surely offset a small interest rate increase.

And then you should urgently consider whether you really need to build that big. Do you need the basement? And does it have to be a double garage?
I think with compromises and current land prices you can build something for 400,000€.

The personal contribution of 50,000€ is much harder to achieve than you think.

Thank you all already for the numerous, although for us rather sobering, honest answers.

We are (as before) very torn...
but I want to clarify a few things that have come up...

- Husband's salary will rise to €2900 net after marriage and from 10/14 to ~€3200 net. (The salary increase for 10/14 is already signed)
- The small business is registered under the husband and should easily bring in €2500/year, but it is only intended as an extra repayment
- Husband does not work shifts but is an engineer in maintenance at an industrial company, so Sunday work is possible since certain tasks can only be done then, yes about €250 net per Sunday
- Husband has a 35-hour week with very flexible working hours, e.g. Friday off for overtime and work on Sunday instead
- The parental home is "only" included for the first 10 years until we get the total loan amount below 60% loan-to-value of our own house, this has actually been well discussed with the parents and the risks have also been talked about. Fortunately, they would also be able to easily pay off the loan on their house before retirement, so the house is safe.
- The double garage was only included in the architect's example house, and it would be built by ourselves anyway
- €50,000 of personal contribution is a lot, we know that, but the parents-in-law even contributed more personal work and want to help actively again

We are aware that you can sugarcoat all this ;-) the question for us is whether it is still worth building now (with a lot of personal contribution), just because of the interest alone and because we can currently get a plot in the desired location at all, the next one would probably be available only in about 3 years :-(

Best regards Eloee

We are aware that you can rationalize everything ;-) the question for us is whether it is still worth building now (with a lot of own effort), if only because of the interest and because we can currently get a plot of land in the desired location at all; the next one would probably only be available in about 3 years :-(

From my point of view: An absolute criterion to stay on track here. Especially in metropolitan areas, there is such a severe shortage of building plots that prices will not decrease in 3 years. And even with the same or rising prices, it is often a matter of luck to get a plot at all. How much is your little house worth to you? Wouldn't 10 sqm less living space suffice?