Financing: Our house construction project is scheduled to start next year

As I hear this here, I think everyone wants to stop me.

Not stop you, but look at it realistically. A new build is always more expensive than a renovated old building in the same location, otherwise the market wouldn't work. Under €2000/sqm you will only build in the deepest east of Germany at most. It only gets cheaper with a lot of your own work, but then you spend your free time on the construction site. Exactly what you don’t want with a renovation. Or you build smaller, 130 sqm instead of 160, carport instead of garage, no basement, and you've already saved a lot of money. But that's still future music.
Basic requirement for your dream—no matter how it develops—is a rough financing framework from the bank. You have to clarify that beforehand like everyone else. And then look for a plot of land. Getting one at all is a problem for many. Then you have to see what actually fits on the plot. A hillside location basically always requires a basement (= expensive) and you have to do the exterior landscaping right away so the hill doesn't come (= even more expensive). Maybe the development plan requires something of you that doesn't fit or is unnecessarily expensive, etc.

Did anyone stop Bill Gates from founding Microsoft? No?

Bill Gates did things as a student that as a trained computer scientist with 10 years of professional experience were still beyond my level. Most people underestimate not only how good he was at developing software, but also simultaneously as a businessman. There are very few people like that, and I think none of us here belong to them.

Bill Gates did things as a student that were still beyond my level as a computer science graduate with 10 years of professional experience. Most people underestimate not only how good he was at software development but also at being a businessman at the same time. There are very few people like that, and I believe none of us here belong to that group.

Yeah, and no one could stop him from founding Microsoft. But the trick to position MS DOS with IBM was not a given. Different licensing or even purchase conditions by IBM and the story would have turned out differently.

[I live in a STILL affordable area and even here €2,000 per sqm is the absolute minimum you have to calculate with. Realistically, it’s more like €2,200 per sqm. Then you have additional construction costs, ancillary purchase costs for the plot and outdoor facilities (terrace, paving, lawn, fence, trees, shrubs, external cables, shed, carport) plus furnishings including the kitchen.

House: 2,200 x 150 sqm = €275,000

Additional construction costs: €50,000

Furnishings: €15,000

Outdoor facilities: €15,000

Plot: €120,000

Purchase incidental costs: 8.5% x €120,000 = €10,000

TOTAL: €485,000


You MUST at least calculate with this total for a 140-160 sqm house without a basement and no fancy extras.

And based on your details I see this as not feasible for you. Because I believe the expenses will be higher on average per year than you have indicated. But the household budget book will show this when it has been kept continuously for 12 months.]
We are currently gathering offers. So far, in solid and prefabricated house construction, we have only found one provider each offering higher-end finishes at about €2,300-2,400 per sqm. But those are pure house costs without ancillary costs. So without much fuss and everything standard, €2,100-2,200 is definitely doable. But honestly, if I’m building a house for €280k, I don’t want doors that I can lift with one hand. Or tiles that look like they are 20 years old after 3 years. Cheap is unfortunately cheap. And a manufacturer who is high-quality as standard costs at least €2,300 per sqm again. There are no limits upwards!]

We are currently in the process of gathering offers. So far, we have only found one provider each in solid construction and prefabricated house construction that is around 2300-2400/sqm for higher-end finishes. But these are pure house costs without additional costs. So without much frills and everything standard, 2100-2200 is definitely feasible. But honestly, if I build a house for 280k, then I don't want doors that I can lift with one hand. Or tiles that look like they are 20 years old after 3 years. Cheap is unfortunately cheap. And a manufacturer who is high-quality standard costs at least 2300/sqm again. There are no limits upwards!

I’m 100% with you.

First of all: you are doing great! You are young, set long-term goals, and derive steps to achieve them. Further education is always top anyway! If flexibility is added to capitalize on your qualifications, you will follow your path and definitely be able to fulfill your dream.

To realistically assess all this, it will definitely help you to have a few consultation talks with house builders and financial advisors. For this, take the tips given here in the forum with you (for example, the amount of additional construction costs).

The danger for many who have "always" wanted a house: wishes and expectations for the house are consciously or unconsciously built up over years. At the latest when it comes to concrete planning, the original house price goes up in smoke and costs explode. Starting with sockets, floors, walls, window sills, front doors, bathrooms – it’s almost impossible to always say "no." Often, it simply doesn’t make sense.

So, in short: really put your goal into perspective again. Get information and have it evaluated by the forum. Then you will see how far you still are from the goal.

Regarding the plot: that can also happen quickly. We found 2 concrete plots for purchase within 3 months. Both below the standard land value. And that in an area (west of Düsseldorf) that is actually swept clean and expensive. Everyone around us has been searching unsuccessfully for years (some of them not seriously though). How: knocking on doors on weekends. Driving around building gaps. That works! But maybe that’s already thinking too far ahead :)

It is possible to achieve your goal. You have the right attitude.