Financing house construction is feasible

In Nickern and Bannewitz, prices were between 190 and 200 EUR per sqm. In Coswig, there are currently developer-bound plots for 160 EUR per sqm, which is already quite a way out. Schönfeld/Schulwitz 135 EUR per sqm, although there you are actually already cut off from civilization including schools, shopping options, and public transport. Kesselsdorf 165 EUR per sqm, where there is basically infrastructure.

If you calculate with 600 sqm, that's 81,000 (Schönfeld/Schulwitz; not really good infrastructure) to 99,000 EUR (Kesselsdorf). Nickern and Bannewitz, except maybe for a few edge plots, everything is gone (around 120,000 EUR then) and inner-city building gaps can sometimes cost over 200,000 EUR.

30,000 EUR in Rabenau or what? Such plots are not so cheap without reason. Nobody wants to move there and the villages are shrinking and dying out. You will never be able to sell such houses again and even for daycare or school, you have to drive the children later by car.

The main problem is probably the lack of equity.

With similar ideas of 230K€ all in, we also approached the topic of building 5 years ago. Back then, the plots of land were still available for about 90€ in Wilsdruff.

We then built a simple house of 125m² for around 250K€ plus land, including incidental construction costs, outdoor facilities, and a 50m² steel garage in Wilsdruff. Construction prices have definitely not decreased in the last 4 years.

Hm....I do notice, when I read the topics here, that you all in the south of the country have to spend an incredible amount on building. Regardless of the fact that with us you can easily get land for around 100 or sometimes even 50 per sqm with development and zoning plan, the pure building prices are also high. Do you all build that big? Or with a basement? Or do you have to move mountains first? Or are our companies in the far north really cheaper? Because I think the builder, me, and the bank have already calculated everything properly here and we end up at only 207 thousand for the house including garage and additional costs. And we don't have the impression that it will be a shack. Nor a palace. Just a house.

You are right, house construction is cheaper here in the North... but if you want a bit more than two sockets in the bedroom, or in the bathroom, no plastic trims on the tile edge but stainless steel ones, or also value a comfortable terrace outside, (not to mention a controlled residential ventilation system), then we are moving further and further away from the catalog or offer price.

Very tight situation. I see no reserves to cover the shortage. I see in my crystal ball a painful additional financing because 220,000 is not enough. I see an unhappy small family because the necessity of self-performed work can only be carried out by the builder. I do not see a happy life as a small family in a nice house. (A bare Scanhaus Marlow Marlow without extras is not nice, sorry, I do not like Scanhaus Marlow Marlow)

Sometimes I don’t understand the discussions or the answers here. The original poster asks if the financing is feasible, and in a subthread about construction financing, he gets "attacked" because the costs don’t add up. Wouldn’t he have asked in a different thread if he wanted to know that or was unsure? Shouldn’t one look at the documents regarding the cost plan, building description, and contract to be able to answer regarding the costs in a well-founded manner?

I have often noticed this in this forum: the question aims at construction financing, and suddenly, too expensive, poorly thought out, will fail, etc., without having reviewed any documents thoroughly. Sometimes this happens with OPs who haven’t even named the building location yet. I think that with a plot price of 30,000 euros, the overall cost plan can very well work out, however, I would recommend the OP to have this question answered in the threads, that deal with construction costs, etc. and to provide the documents, offers, and cost plans to an experienced building expert there.

It must also be mentioned – although this is not 100% certain – that the bank will also review the costs, meaning that in the case of a financing review, a too tightly calculated cost plan, especially when using little equity, will usually not be approved by most banks. Regardless of the fact that serious and experienced financing brokers will also review the costs when receiving the financing documents and, if necessary, correct the total costs or have to correct them, as it is clear that the banks will not accept this plan and thus will not grant approval.

Based on the net income and the total amount stated so far – not yet reviewed – a financing is basically feasible in relation to the total costs, but further information is needed here as well in order to answer the question conclusively and sustainably.

Among other things, it remains to be checked to what extent state funding (region?) is possible, whether loans exist, if the possibility of an employer loan exists, or if the equity is in a building savings contract, which could potentially result in a non-secured building saving loan. The topic of personal contribution has also not yet been answered.

Basically, however – as the good lady continues her work – quite a feasible starting position. Of course, a final assessment can only be made upon review of all documents, as is the case with construction costs!

You can’t understand that either if you haven’t been in the situation yourself.
The questions that should be asked don’t even exist for most TEs here yet when it comes to the question “does it fit or not.”
Concrete numbers (complete cost plan) usually don’t exist yet. Beginners also don’t know about ancillary construction costs and the term _bauseits_, turnkey is a meaningful term for them, and own contributions are not only played down by the builder but used as factor x so that a skewed financing even gets some semblance of reality. The builder isn’t even aware of what’s coming at him – especially when every item is calculated as minimal alongside missing equity.

You are not in an autonomous financing forum here! It is what it is!

Since you usually have no overview of the total costs, I find your answers technically okay, but you promise the questioners more than is actually possible when making a proper calculation. Somewhat careless, in my opinion!

Regards