Financing: What interest rate lock? What goes into the budget?

Thank you very much for the feedback. Honestly, I almost expected it. Regarding the property itself, yes the area is about 750-900m2 and the cost is actually around 50k. Well, but as I am already gathering from this, it is not at all possible to meet our expectations. (160m2)

Then I wonder if it even makes sense to ask what else I can afford? 140m2 without a basement? Or should I rather forget the new build and invest in something existing?

I wanted to get a few opinions here before I go to a civil engineer and the castle in the air bursts there. Better here and I save myself all the visits and planning.

Definitely without a basement to start with. Income is not bad either. But 400,000 without a basement is certainly a total. The plot is nicely cheap.

For 160m² you don’t need a basement.

Rough calculation:

House 160*1700 = 272k
Paint + floor + ceiling = 40k
Plot + additional costs = 50k + 6k = 56k
Construction additional costs = 40k
Outdoor facilities = 20k

Total = 428k€

Required equity to reach 80% financing = 85k

With 100% financing you (if at all) only get bad interest rates.

Construction financing:
430k
Loan-to-value 80%
Repayment 2%
secured for 25 years

Interest rate 1.90%
Repayment 1400€/month
for 35 years (longer is not possible, no bank will agree to that)

Conclusion: without equity this probably won’t work.
Moral: our (wife + I) joint income is 3700€ and we save 1700€/month.
If you earn 4500€ and so far only have 15k€, then
-you are either still too new in the working world or
-you save too little

Whatever it is, you should practice “what if” for 1-2 years and put aside 1400 - 2000 euros each month, only if that works can you afford the fun. And if you save hard for 3 years, with your 15k you will have reached the 85k, then you will also know if saving works, then you will also know if you still want it, then many things become clearer.

Best regards

With all due respect, there is a lot of nonsense in it:

With 100% financing you (if at all) only get bad interest rates.

Source? Proof? Experience?
As long as the liquidity is right, you will also get a reasonable interest rate.
It does not make sense, but actually the bank would expect the incidental purchase costs for the property.

Paint + floor + ceiling = 40k

What exactly do you have on wall and floor that you spend 40k€?

But definitely threw the money away

Well, time cannot be turned back. What was spent without a plan and left in the economy is now missing.
With 4500 and an average rent or standard of living, one should be able to save over 1000/1500, with a frugal standard of living over 2000.

The problem: throwing money away or saving, you can’t just change this either/or so easily - the attitude towards money (dividing your money between consumption and retirement provision) is learned as a child and teenager with your allowance over years. That then manifests as a trait. With you, it is negatively recognizable by the 5000-vacation, that it _does not_ work.

Keep a household budget for the next 3 years and check yourselves. Save a large amount every month.
Eventually, you can then, for all I care, manage with 140sqm without a basement.
Consider the situation that with a child the living costs increase, but the salary decreases.

Regards

Source? Proof? Experience?

My source is the internet biallo.de
Link removed by moderation

80% financing: interest rate 1.9
100% financing: interest rate 2.7
by the way: with all other construction interest calculators you can’t even select 100%, and with 90% of the credit institutions it says "up to a maximum of 80%", and if you read the forum here the absolute majority will advise you to have 20% equity
I thought this wouldn’t have to become an essay with claim - example - repayment, but alright : )

What exactly are you spending 40K€ on walls and floors?

well, note my headline "rough calculation". then make the 40k€ = 20k€ + 20k€ buffer