Financing project as a single with a lot of own effort

Hello forum colleagues,

since the topic of house and financing is becoming more and more pressing for me and I want to make an appointment with the bank for advice soon, I just wanted to ask for your opinion in advance.

The situation is as follows: I am looking for a house to renovate in Saxony. Specifically, I want to buy "cheaply" and renovate a lot by myself. There are several possibilities: - completely renovate the current residential building (unfortunately necessary; my birth house and current accommodation; 4 floors with about 22 rooms). Estimated costs approx. €170,000 - small house for about €120,000 (including renovation costs) - small house for about €145,000 (including renovation costs)

Now the thing is, I am single and can only save about €800 monthly. My goal is actually not to plan more than €600 monthly repayment. Equity would also be only about €20,000.

If I enter, as an example, a loan of €130,000, 20 years fixed interest at 2.5% interest, and 3% repayment in a usual financing calculator, I come to €595 monthly repayment and €29,000 residual debt.

A side question at this point: Does the residual debt have to be paid off all at once or is it also repaid month by month?

With the same values but 25 years fixed interest, I would be done without residual debt after 24 years.

What is your opinion on my situation? Is it feasible or is the risk too great? Something can always come up (e.g., health-wise... then the self-work quickly becomes obsolete). Has anyone else as a single bought/new built/renovated a house?

Thanks in advance,
Best regards
Ande

What is your opinion on my situation?

Read your own headline, and don't imagine it phrased so flowery ("with a lot of own contribution"), but rather as if it said "with so little equity that it almost has to be completely substituted." And now imagine you were the banker. And then it's also about an old dump :-(

Savings rate "only 800"... is relative... depends on the income, with 1,200 net that’s awesome, with 5,000 rather not.... want to say, the crucial info about the income is missing!

Since you did not specify an age: Should the financing and use as a single person remain the same for the next 25 years and/or will the "small house" then be too small for a family?

No equity, no relevant income, no future planning. Nothing really fits.

Should it remain financed and used as a single-unit for the next 25 years

22 rooms, you can probably give some away ;-)

Even though it may seem a bit harsh at first glance, I am grateful for the honest answers.

The plan is, of course, that the house will be sufficient for a small family (prospectively with 2 children). With the current large house, one could even rent out to another party (e.g., siblings; there is interest) as tenants.

Apologies for forgetting to mention my age and circumstances: I am in my mid-20s, with about €1,700 net per month. The reason for having so little equity is that I studied and recently paid back my Bafög all at once.
The €600-800 savings rate is calculated based on what I have now. Once I move, the current rent costs (about €350) will be eliminated, and other costs will arise.