Financing plan for construction projects - Can we manage the installments?

The union guarantees you an annual salary increase of at least the inflation rate, so something like a minimum of 2-3%. Put that into an Excel spreadsheet and you will see that the loan payment becomes smaller compared to your salary. In addition, there are your salary increases.

If there should be a large wave of layoffs (which I don't believe will happen at your bank with an attached electronics sales division), the social plan applies. You have a family with two children, possibly a third one might come, which means you are practically unlettable. Don’t get yourself into trouble in that place and you can grow old there and pay off your house in peace.

Of course, the first years will be tough, but that gets better over time.

I’ll come back to the topic:

Included in the additional costs are

[*]Water connection €3,500
[*]Electricity connection €2,500
[*]District heating connection €5,900
[*]Surveying costs €1,000

Building permit, building ground survey, construction electricity and water, wastewater cistern, earthworks of any kind that are not contractually agreed upon and only become known through the soil survey; that can sometimes add up to €30,000.



We were at €20,000 (including utility connections), but there was still an increased foundation slab of about €4,000 added because of the soil :(

So the building savings contract would of course somehow be included in the financing, i.e. it would already be included in the savings rate of 1400 euros. We have finished with the family planning. Since the second child has only been here for two months, we do get an additional 184 euros in child benefit on top of our previous income, but I don’t count this as additional income because the little son, it feels like, has already "blown through" it on diapers ;-)
My developer promised me that there would be no more additional costs for incidental expenses, but reading it like this, I am cautiously calculating with an extra 10,000 euros.

As additional savings for big things, about 100-200 euros per month were put aside, depending on how the month went.

The repayment rate would be about 2%, and the term is basically fixed for the entire duration through the combination of an annuity loan and pre-financed building savings contracts, which then replace the expired loans.

If I now consider the additional costs mentioned here by me, which I did not take into account, such as reserves for the house, insurance, taxes, higher incidental expenses, how much more should I roughly calculate for this? 100 euros, 200 euros?

The Excel spreadsheet with the forecast of the salary based on inflation is of course tempting. While the savings rate of 1,400 euros now would be about 50% of my net income, it would be only 33% in 20 years with a 2% inflation adjustment.

Of course, the income will increase over the years. But inflation is also galloping. The only thing that will remain the same is the loan installment.

What stuck with me here are: "We don't want to give up on vacation" and "In 10 years, 38k will remain to be paid."

That means for you either to save the 38k additionally or finance it later. Regarding the topic of vacation, it must be said: either you have the necessary spare cash to travel 2-3 times a year or not. Owning property of this size always means sacrifices. And from experience, especially in the initial phase, you will have additional costs (different planning, furniture, etc., etc.).

The good thing is that in an emergency your wife can increase her contribution.

However, no one will make the decision to build for you here. It is always a fundamental discussion.

33 years old, permanently employed at a large company in Bavaria and only 2850 net per month?

I also find that somehow quite low. And the argument "low-wage area" somehow doesn't convince me. But okay, everyone has to decide for themselves.

I find the financing amount too high for the current situation.

Salary increase and secure job or not, I also think that the financing amount is too high for the income/expense situation.

Why not go one size smaller, leave out the garage, carport, and paving for now and you can save a lot. If the hoped-for "bigger" salary jumps come or your wife can work more again, you can still make up for it later. And you could sleep much better at night.