Financing offer good/bad?

Phew, I honestly didn’t expect that.

2,200 € for 2 people and then build a house for over 300,000 €? And the bank is really financing you for over 250,000 €? Your equity is not bad, but in my opinion the financing amount does not match your current income. That you probably will have significantly more in a few years is secondary for now, because there’s always the big: What if...? Never count on something you don’t have yet.

If you calculate it: almost 1,000 € installment + in the best case 300 € additional costs (more likely more) leaves you with a total of 900 € to live on... that has to be enough for food/hygiene, insurance, car, phone, leisure, clothes... and whatever else you have. You should actually have reserves for the house as well, but that wouldn’t be possible for you.

Why does it have to be a house now? I would wait until your girlfriend earns, you have at least an opinion on family planning to be able to factor in income losses – because in the worst case you will be right back at 2,200 € (+ child benefit) with a child.

Even if a bank would finance the project like that, I wouldn’t do it in the current situation. It’s way too tight to cover unforeseen events. Do you really want to expose yourselves to that risk?

If it really has to be this "dream plot," you could first just buy the plot (your equity should be enough for that) and then wait a bit to build until the financial situation has relaxed. Why is the plot being sold at 50% of the BRW?

2,200 and 250k financing? Has that already been checked??
I think that will be tight to impossible

Maybe your girlfriend needs a car when she goes to work?

Has a car

To be honest, I don’t really understand that. The local resident model is actually very popular – so why is the city/town offering it at half the price?

The municipality just wants young people in the newly developed area

The local resident model is always heavily discounted, but they have very, very strict requirements to get such a plot; many people were turned down and we were lucky to get through all the meetings and receive it

The questions that you should definitely ask yourself beforehand, in my opinion, are:
1. What about family planning? How will that affect your girlfriend’s income? Can the installments be handled without problems then?
2. How secure is the job/the jobs?
3. How certain is it that your girlfriend will find a secure job at that location at all?
3. What happens if one becomes unemployed or has to be sick for a longer period (keyword sick pay)? That could also be you.
4. Support from the family is good, no question. But with the tight budget, help might be needed faster than expected. And would you really want that then? – We also have family support, who would help us financially in an absolute emergency and could do so. But that would really be the absolute worst case, and even then, the sky would almost have to fall on our heads for us to need that help.
5. You are still so young, early/mid 20s. Is this your first job? Do you really want to commit now to one place where you want to live and work (keyword career development)?

1. we want children, yes, but that will surely take about 5 more years
2. my job is as secure as the amen in church
3. she works at my company (the company is 250 km away and we travel from country to country and city to city, so it can’t get worse) but that’s another topic
4. as said, first stay at 2% repayment, then overall we come to about €1200, which we can easily handle together
5. with our age I see a big advantage combined with the fact that we are absolutely sure to live exactly there (after all, we grew up there) I have been with the company for 7 years and cannot imagine any other job (I still love my job) I can develop enough in this job and it cannot get worse in terms of commuting

Then just do it if you really want to and the bank cooperates. We can only give you tips anyway. In the end, you have to pay the loan, not us. And you also have to deal with the situation, whether it is commitment to a location/financial situation/commute, and be happy with it.

Just a quick note about the construction costs you mentioned: The cost breakdown is personally very (too) detailed for me. I know few builders (please correct me if this is not the case) who calculate in steps of 10, 50, or 100 €, if at all, usually in steps of 1,000, maybe even 5,000 or 10,000 €. If you also have 30,000 € saved on the side, that might work, otherwise I would strongly advise you to plan a good buffer. In (almost) all cases it will end up being more expensive than planned, whether because you always forget something (even if it's just small things), items are missing in the construction description (I assume this is a general contractor/general contractor agreement), upgrades or because the earthworks become more expensive than planned (soil survey!)..... etc.....

I have not read the entire thread now. But briefly on this:

With a LTV of up to 80%, the rate should be around 2%, owner-occupied property, 10 years fixed interest.

Therefore: Offer clearly too expensive! Keep searching!

Then just do it if you really want to and the bank cooperates. We can only give you tips anyway. You have to pay the loan in the end, not us. And you also have to cope with the situation, whether it’s settling on a location/financial situation/commute, and be happy with it.

Just a quick word about the construction costs you mentioned: The cost breakdown is personally very (too) specific for me. I know few builders (please correct me if this is not the case) who calculate in steps of 10, 50 or 100 €—if at all, they calculate in thousands, maybe even 5,000 or 10,000 € steps. If you also have 30,000 € saved on the side, that might work; otherwise, I would strongly advise you to plan a good buffer. In (almost) all cases, it ends up being more expensive than planned, whether because you always forget something (even if it’s just small things), items are missing from the construction description (I assume this concerns a general contractor/general construction), upgrades, or because earthworks become more expensive than planned (soil survey!)... etc...

And there are always things that come up that you might not be thinking of yet. Even if it’s just the lawnmower, the garden shed, or property tax. In new development areas, the final road surface often only comes after all the construction sites are completed. Then additional development costs or road construction contributions can quickly be added.

We have calculated the costs quite precisely and really questioned every figure. The costs for own services (materials, machines, etc.) have been calculated with a good buffer. In addition, purchases of furniture, accessories, wood stove, etc. have been included, and yet I still calculated a clear buffer on top of that.

If I then don’t need it, I can simply not draw it or prepay directly. That’s definitely better than additional financing (if that is even possible with your income).

Furthermore, as described above, comes the poor interest rate and the low repayment for this loan.

Best regards Jochen