Financing framework for new construction on own land, 3 children, civil servant A13, Hamburg

I find the point Donations with €600 very interesting. One zero too many?

Regarding the salary, it will continue to increase nicely due to the automatic step increase. But if child 3 drops out, it hits financially a bit.

I have been living in my house since 2019. I am still waiting in vain for this effect or a subsequent relaxation. The official inflation since 2022 was 19% (the personal shopping basket felt rather more affected), the salary increased by a generous 12% (TVL). I do not believe we will ever make up this gap again. The state is always just strapped for cash.

With the pandemic and the Ukraine war, unfortunately a somewhat severe development. Adjusted for inflation, I also earn less today than in 2021. However: rent is also rising. I once looked at Hamburg. On average, rents there have risen by over 50% in the last 15 years (inflation + increased demand). The portion of rent rises, the repayment (apart from interest rate risk) does not. I see the rest the same way. These are decisions that make things very tight here.

But 150k ifb loan with 2% interest and 2% repayment = 500€ monthly.
KfW 300 with 200k loan with 3% interest (fixed for 20 years) and 3% repayment = 1,000€ monthly.
Bank loan with 220k at 4% interest (fixed for 10 years) and 2% repayment = 1,100€ monthly.
==> Total: 2,600€

KfW 300 with 20 years is terribly expensive. 10 years with 1.7% and 2.2% repayment would be cheaper.

Then the rate shrinks to about 2,250. Then another 5 years without repayment and the saved repayment put into the expensive bank loan.

With the development of income relative to the installment, that is of course correct. Wages have risen sharply since 2019 if you are lucky enough to be paid according to the collective agreement or have been able to negotiate well with the boss. However, this is offset by the overall price development, which far outweighs these savings.

And currently, on top of that, with 3-4% interest rates and hardly any decrease in construction costs, you simply have to put a lot of money into non-productive expenses. While I currently pay the bank just 250 or 300 EUR per month in interest and repay 900 or 1000 EUR, for the same amount and the same repayment, currently 700, 800, 1000 EUR in interest is due. You get no added value from this money...

I stick to my point. If after deducting the installment, additional costs, and reserve formation only 2,500 to 3,000 EUR “only” remain, then that is okay. But with three children, there is no room for big leaps anymore. Especially when you are now paying 700 EUR rent without utilities. That will be quite an adjustment. You wouldn't believe how much money you can still hide in such a house during the first 3 or 4 years...

Financial situation:

The standard rate for 2 adults and 3 children (2x6-13, 1x 0-5 years) is currently 2,149 EUR. This is considered the subsistence minimum.

Calculate your house installment, 2,600 EUR, plus additional costs around 500 EUR, plus subsistence minimum for living. Then you are already close to your household net income...

If after deducting installment, additional costs, and savings "only" 2,500 to 3,000 EUR remain, then that's okay. But with 3 children, you can't make big leaps anymore.
Especially if you now pay 700 EUR cold rent. That will be quite an adjustment.

But if child 3 drops out, financially it will hit a bit.

That is helpful. For exactly these reasons, we also aim for a lower construction sum, i.e., installment. Let's say 2,000 to 2,200. Hoping that this will work, see below under construction plans.
As soon as one child is out, probably even earlier, my wife can start working. At least that’s the plan. We are not per se against her working. So there is an option here to offset inflation etc. But we do not want to build from the start in a way that she has to go to work within the next few years (child 3 is still very young) because we financially overstretched ourselves.

I find the point about donations with 600€ very interesting. One zero too many?

In that respect, it fits at least that you want to build rather modestly. But then you really have to.

We do gladly, it is a matter of priorities. By the way, the donation amount is about 10% of the official income.

Construction plans:

Don’t be mad at me, but if you seriously allocate 33m² for 3 children's rooms, i.e., 11m² each, but 25m² for your own bedroom and 15 for the office... please don’t build like that... the priorities are already wrong from the start...

There is a misunderstanding. Maybe because I communicated badly.
Otherwise, it wouldn’t be "wanting to build modestly" anymore.

Maybe this helps to understand how I thought: The upper floor (OG) is decisive for the floor area of the stories and thus for the total living space. If total living space should be less than 150sqm, then the OG has to be correspondingly small. In the attic (DG), the floor sizes then result accordingly (gable roof, so living area is smaller than on the OG). Certainly, it would be possible to shift a room from the OG to the DG, but I doubt that is sensible.

In the bedroom is a double bed and a large wardrobe, no luxury stuff, but also for storing parents' stuff/family stuff well. Therefore, it must be about 15sqm or so. A loft bed can provide space next to the desk and a small wardrobe in the children's room. Of course, it could be 12 or 13sqm, but it doesn’t have to be.

The office can be from my side 6 to 7sqm. But if it is bigger because of the attic slopes, storage space will also be accommodated here.

A prison solitary cell has at least 9m².

Wrong comparison. Children at our home have a living room, a garden, ... Possibly two boys share a room for sleeping and share one for playing, possibly parents and children swap for a larger floor area. So much is conceivable at home. And, it may surprise, but our children will also occasionally get some exercise and are not prisoners. ;-)

A technology or utility room of 8sqm is already tight for 2 people, for 5 people the utility room and storage options can’t be sufficient enough.

With a rental flat you don’t have the building technology in your apartment and normally have a basement room and sometimes an additional laundry room. You have to consider this space in the house as well.

We have thought a bit about storage options, see above. Of course, bikes don’t necessarily have to go to the attic.
But maybe some of the building technology could even go into the attic? Conceivable? Sensible?
Then a bit of space for laundry and similar would be free on the ground floor.

Overall situation:
From another thread (Assessment new build 2025/2026 - BW rural area | page 4 | Post #20):

And exactly THAT determines the final price. 160sqm "have to" be now.
Then you cannot build cheaply either - plus the upscale wishes.

Not a problem. You just have to be able to afford it. But it is simply wrong that you "have to" spend huge sums on a house. A family of four can also manage well with 125sqm including a study. Only no one who seeks support here wants that.

Yes, we want to. Or am I overlooking something?
Of course, this is related to a family of four and not 1:1 transferable. But please think exactly in this direction: not too big, but sensibly small.

Under about 150 sqm it will not work for 5 people.

I am not quite convinced yet.

So you believe that 2 boys would still want to share a bedroom at the age of 13 or 14? If you see it that way, then build it like that... in any case, you won't be doing your children any favors like this... Honestly, I would rather sit at the living room table for the home office than shrink the children's rooms to 11m²...