Financing plan for a single-family house of 150 sqm in the commuter belt – is it sensible without equity?

Hello everyone,
I would be very happy if you could give us an assessment of the project mentioned below. Is something like this sensible, or should we postpone it by a few years?

General information about you:

[*]Who are you? m40/f40, married
[*]Are there children? 1
[*]Are more children planned? no
[*]What do you do professionally? civil servant/businesswoman
[*]How many hours do you work? 40 and 40

Income and asset situation:

[*]What income do you have (net)? 3400+450 net/ 4200 + 13th and 14th salary + bonus (approx. 15,000 net/year)
[*]How much child benefit is there? 219
[*]Other transfer payments such as parental allowance, sick pay, etc...?
[*]Total: average 9800€/month
[*]How much equity do you have? 50k currently
[*]How much equity do you want to invest in the house project? 50k

Housing costs:

[*]Current repayment house 1000€/month
[*]Electricity, gas, etc. 600€
[*]Phone, internet, mobile 40€ private
[*]Total: 1640€

Mobility costs:

[*]Car loan (or savings rate for new car) 280€ car 1, company car car 2
[*]Insurance 50€
[*]Taxes 0€
[*]Fuel 0€/ electricity 170€
[*]Repairs: new car
[*]Total: 500€

Insurance costs:

[*]Private and statutory health insurance (also supplementary health insurance, daily sickness allowance, etc.) 1200€
[*]Liability insurance (also animals) 15€/month
[*]Capital or term life insurance 50€/month
[*]Pension insurance (including Riester, Rürup, etc.) no longer applicable
[*]Disability insurance 100€
[*]Accident insurance 20€
[*]Household insurance 20€
[*]Legal expenses insurance
[*]Other insurances (such as travel insurance, funeral insurance)
[*]Total: 1365

Living expenses are currently above average due to the comfortable financial situation:

[*]Groceries 700
[*]Restaurant costs 100
[*]Care/drugstore 100
[*]Pets (food, vet, medication, stable costs) 50
[*]Clothing 200
[*]Daycare/school fees (and meal money) 130
[*]Cleaning house and garden maintenance summer 750/winter 450€
[*]Tickets (football, cinema, concerts etc.) 100
[*]Total: 2130

Savings:

[*]Vacation 800€/month
[*](currently 2k in stocks)

Income and expense totals:

[*]Total income approx. 9800€/month
[*]Total expenses approx. 6435€/month
[*]Balance 3365€/month + 1000€ from successful rental of the current house (possibly also 1200€) = 4365€/month

General information about the property:

[*]How big is the plot? None found yet (current sqm prices are about 450 to 550€)
[*]New build, old building (year built), house type? New build
[*]Garages?
[*]How big is the house? (living area / usable area) 150sqm
[*]What is the market value of the land and house after completion? Similar to costs, as it is the commuter belt of a large city

Construction or purchase costs:

[*]Land costs approx. 300 to 400k (approx. 800sqm)
[*]Development costs 30k?
[*]Additional purchase costs (notary, court, real estate transfer tax, broker) 90k
[*]Construction or purchase costs (incl. architect, structural engineer) 150sqm x 3000€ = 450k
[*]Renovation and/or refurbishment costs
[*]Incidental construction costs (e.g. house connections, soil surveyor, construction power, etc.)
[*]Outdoor facilities/terrace, paths, garden design, fences, etc. 20k
[*]Financing costs (e.g. fees or commitment interest)
[*]Total costs approx. 800 to 900k

Current house:
Same location, central location, current value approx. 300-400k (almost only land 1100sqm), but very old house, outstanding loan 200k. We would like to keep it because we assume the value of the land will continue to rise. The repayment would be covered by rental income, which we have deliberately set very low at 1000€. Normally it would be rather 1500€.

Challenge: Almost no equity because a lot of money has flowed into self-employment in recent years, but the company has been doing really well for 1.5 years now. Profit distributions (not bonuses, those are secure) will probably also be possible in the next few years. Currently, however, the money is better invested in the growth of the company.
Are there even banks that would finance something like this? It just occurred to us because we love new projects. Or, in your opinion, should we rather wait another 1-2 years (as mentioned commuter belt) because we will probably have more equity then and the current times are uncertain anyway?!

Thank you very much!

Interesting mix... very steady salary as a civil servant versus uncertain income of a recently successful entrepreneur.

The first point of contact would probably be the entrepreneur's bank, as they are most likely able to assess the structure.

How much mortgage is currently available on House A? Does it make sense to include that in the balance? Then the bank would have additional collateral of about 200k.
In addition, she generates another 50k/year.
By the time you find something in the commuter belt and have initial house offers, you will be quite a bit further along.

I primarily see the costs as plausible. However, the combination of a high-ranking civil servant and an entrepreneur raises questions about the expectations. Currently, 3,000 €/m2 is more or less standard, not the upscale high-tech villa.

The first step, as mentioned, would be a trusting conversation with the house bank.

Edit:
And of course, there is also a possible limitation on vacations... it doesn’t have to be twice a year in the Maldives. (Or wherever else one spends 10k per year)

Just pull yourselves together a bit when it comes to expenses, then equity will be generated quickly. You don't even have a plot of land yet, let alone a project or a first (high) invoice generated. Are you putting in borrowed capital in self-employment? Liability with private assets? Discuss it with your tax advisor, possibly reconsider the marital property regime and register your own house only under the civil servant.

450k euros for the house including architect and structural engineer. Could currently be very tight, unfortunately. Pharmacy prices.

Otherwise, a crazy starting position. 900k euro loan, full financing. Also a question of how the bank assesses the loan-to-value ratio.

How much is the existing house indebted? How long has the loan been running? Possibly equity for the new construction project can be obtained through refinancing.

Pull yourself together a bit with the expenses, then equity will be generated quickly. You don’t even have a plot of land yet, let alone a project or a first (high) invoice generated.

Are you involving debt capital in the self-employment? Liability with private assets? Discuss it with a tax advisor, possibly reconsider the marital property regime and only have your own house registered under the civil servant.

Sure, the expenses are currently high. So far, we have assumed that we will not change the house again

There is no debt capital involved in the self-employment. It is a GmbH. I’ll first see how things look with plots of land. It could be that it takes 2-3 years anyway. New building areas are supposed to be designated, but so far no one has been able to tell me how to get hold of one. Thanks a lot in advance!

Honestly, I think no bank will be found for the project. Self-employment may be going quite well for now, but for the bank it has to be really stable and sustainable. I wish you good luck, but I think it won't work out at that scale.