Financing needs/opportunities

That has been the case for a long time. The most accommodating was still the Sparkasse. Last year we were still able to deposit 30000 with a 2.7% contract. At least that much... but now it's also over there. BHW is really bad... they are trying to cancel a contract from 1998. So far we have been able to prevent that..

So with the whole text, I can only give you one piece of advice:

Simplify your live

So, although not much time has passed yet, on November 30th there is a local council meeting in which the playground plot next to the parents-in-law's house is to be designated as a building plot. That would then be the only remaining building plot in the village. The offer is supposed to be limited to current (300) or former residents of the village, but we know of at least one other interested party.

A big advantage for us is the proximity to the parents-in-law and that, for example, we can do without a basement because of that. That is worth real money when building a house.

It is assumed that the transaction will take place "still in winter" and that the land price will be around 30,000€ (plus notary/taxes) at 50€/sqm and 612sqm. That means if we at least want to throw our lot into the draw for the plot (I hope there is no auction) then we should already know if it is realistic to build on it.

Our situation has also changed a bit otherwise. For example, the plot can possibly be largely paid for by the father-in-law and then serve as equity capital for us. He would not do this for a plot somewhere else but he likes the idea of having us nearby.

On the other hand, we have somewhat refined our house-building plans and know quite precisely what costs will be coming up for us.

Likewise, my wife will resume work again from January. Part-time, which will certainly remain so for 15-20 years before even thinking about full-time again.

And the large loan on the parents-in-law’s rental property (but transferred 50/50 to the sisters) will be eliminated because the apartment will be sold on 01.03. and this loan will be repaid.

There will only remain about €18,000 of credit on the parental home, which is fully serviced by the parents and could also be repaid soon with the maturity of a life insurance policy.

0 € land (borrowed at 0% from father-in-law but after discussions we assume a de facto gift) + 227,808 € house expansion stage "almost finished", heating, plumbing and sampling within a moderate framework (prefabricated house) + 49,958 € financeable ancillary building costs and material for completion (walls, floors except in the bathrooms) - 30,000 € land as equity capital - 25,600 € further equity capital (savings 2x BHW, daily & monthly funds) = 222,166 € loan amount

18,160 € unfunded costs (kitchen, double rent) from additional equity capital already saved now and until the building project

This results in an effective interest rate of just over 2% according to most credit calculators on bank websites and a monthly payment suitable for us of just over 900-950€ with 3% repayment, 15 years fixed interest, €105,000 residual debt, possible special repayments and rate adjustment.

Possibly KfW55 is also still an option here but that is not quite clear to me yet. Until this year the provider still guaranteed that but apparently the thresholds for April '16 are not yet fixed... I wonder how they want to guarantee that.

I will certainly not be able to assign any significant amounts for the minor own contributions.

I have set the vacation requests significantly lower (but still about €3,600 per year included) and my wife's net income (€855) is now also added but I have still included some other costs (life insurance risk due to house building, ongoing costs for 2nd child).

This results in a surplus of €1,400 per month including the current cold rent.

In the years with parental allowance (2nd child) the monthly surplus would drop to €1,226 for 1 year or to €943 for 2 years. So even in this "income dip" the rate could still be paid, missing vacations in these years with a young child will certainly also be good for the finances.

Any opinions? Are we still getting caught up in unrealistic financing territory?

How does such a 0% private loan of €30,000 for the plot behave? Does anyone at the bank care about that? Or is it a private matter?

Do the remaining €18,000 loan on the parental home (50% belonging to my wife but fully serviced by the parents) make a big difference/interest surcharge in loan procurement?

I have a several-hours consulting meeting with the house provider again on Thursday and wanted to take detailed plans, cost breakdowns and an offer then. With that I wanted to start contacting a few banks with requests for offers.

That way, in case of, I would be with a good conscience in the draw when the plot is sold.

€0 land (borrowed at 0% from father-in-law but after the discussions we assume a de facto gift)
+ €227,808 house construction stage "almost finished", heating, sanitary and selective fittings within a moderate range (prefabricated house)
+ €49,958 financeable additional building costs and materials for completion (walls, floors except in the bathrooms)
- €30,000 land as equity
- €25,600 further equity (balances 2x BHW, daily & monthly deposits)
= €222,166 loan amount

I hope you didn't calculate the rest like that as well.
You can't include the land at €0 and at the same time set the €30,000 gift as equity.

How does such a 0% private loan of €30,000 for the land behave? Does anyone at the bank care about it?

So what is it now, loan or gift? It should make a difference for you.

Well, sometimes you make mistakes that just shouldn't happen...
Of course, you are right and that can be a decisive blunder as we effectively need €30K more loan than assumed because of it.
I now end up with installments just over €1,000 but of course also higher interest costs and thus a remaining debt €8K higher after 15 years despite the higher installments.

Thanks for the hint, I would definitely have embarrassed myself with the banks otherwise.

Regarding loan/gift, that obviously makes a difference for us. The question was just how to communicate that to the bank or whether they even care or if they come across it when reviewing the equity proofs and question it.

One big unknown for me is still to what extent the €18K remaining debt on the parental home, which is not serviced by us but is 50% in our responsibility due to the transfer 10 years ago, affects our current loan project.
Does anyone have experience with that?