From 0 to 100 in 3 years realistic? | Building obligation

With a €600,000 loan, a €1,600 installment is just a little over 2% repayment, depending on the interest rate used. This results in a term of 35-40 years. Far too long. With a 1% interest rate, you would still have a remaining balance of €460k after 10 years. Very dangerous if interest rates rise significantly in the meantime.

I initially assumed 2% repayment, maybe you are right and we should choose a higher repayment. However, I don't find it bad at first to have to pay for 40 years.

The sentence is clear. "Bezugsfertig" means ready to move in. Floors, painting, everything done.

I hope that next week I can speak with the appropriate contact person to find out how strict the given deadline really is in the end. If it really is three years without any ifs or buts, our plan is also somewhat ambitious, or rather, we would not be able to save the desired equity within that time.

I initially assumed a 2% redemption rate, maybe you're right and we should take a higher redemption rate. However, I don't find it bad at first to have to pay for 40 years.

2% initial redemption rate comes from times when interest rates were higher. By now, that's far too little.

1. Follow-up financing: With high interest rates, this can break your neck. Even if it doesn't financially ruin you, it can still significantly push back the time of full repayment. Although you are very young, such financing will be completed barely before retirement.
2. Now you have a new house where nothing breaks. In 30 years, you'll have an old building. In 40 years, you probably will have redone the heating, kitchen, and bathrooms several times. That all costs money. Of course, you can completely wear down such a house, but it doesn't have to be that way.

I find the loan term better than such rules like x% initial redemption rate. And plan accordingly with a sufficient buffer so that the follow-up financing doesn't become a disaster.

(Geothermal energy, KfW40+)

Somehow they don't really fit together. Even in cold SIG, an "air pump" should be able to handle it, especially since you don't have 250 m² of living space.

Absolutely not. I am building in southern SIG and the general contractor gets a good €400,000 for a house with about 135 sqm on a slab foundation. Of course, there are some things in there that could be omitted or done cheaper (geothermal energy, KfW40+), but he also takes on some things that are usually passed on to the builder, e.g. earthworks, architectural services, construction electricity. The pure construction costs are therefore somewhat below €3,000 but that is with prices from just about a year ago. In the meantime, it has become more expensive. And some things you will not be able to save on, e.g. the photovoltaics.

With a €600,000 loan, a €1,600 installment is just over 2% repayment, depending on the interest rate set. That would result in a term of 35-40 years. Far too long. With 1% interest, after 10 years you would still have a residual debt of €460k. Very dangerous if interest rates rise significantly in the meantime.
If you take a longer fixed interest period, then the interest rate increases accordingly and you hardly repay anything. An additional difficulty at this point is that interest rates will probably rise, so in 2 years you are unlikely to get 1.0% but maybe 1.5%. And currently you have too little equity for the really good rates. So 1% is tendentiously still calculated too optimistically.
The mentioned rule of thumb of €400 per €100k loan corresponds to a term of about 23-25 years. So absolutely not a short-term financing either, but still reasonable.
6*400 is €2,400, for €650k it would be correspondingly €2,600 per month. €600-650k are therefore about €2,500 per month

Here €793k loan, installment at 2% repayment €2,260, interest 1.42%, loan-to-value almost 100%

Basically, I see few problems at first regarding equity and the possibility of getting financing. But I would consider whether it makes sense to go ahead with the house construction now with a high loan-to-value ratio and make substantial prepayments. Then you have today's prices and can fix the interest rates now.

Do it the way Wilder Süden described. Just don't save for too long, credit is your friend! For example, we started planning last year in January, and the first groundbreaking was in October. If you are that disciplined with saving, then nothing can happen to you in my opinion. The problem you will have in the next few years is the construction cost increases, against which you can't save! From 2021 to 2022 alone, it was 10% and more.

To give you a sense of what you get for your money (prices 2021/2022, rural area in southern Bavaria). Our KFW 55 house with a granny flat (total 220 sqm) costs us 650,000 euros. I would say the house is good standard without (major) frills.

Since last week, this house has become 57,500 euros more expensive (thanks to the abolished KfW 55 subsidy). Luckily, we have an approval. KfW 55 will likely become the new standard house, meaning cheaper is not possible.

To fully shock you now: The price does not include a garage, photovoltaic system, battery storage, "smart home" (except automatically controlled electric shutters/raffstores), not a plot of land of course, no landscaping or other incidental costs, and no kitchen either. So in southern Bavaria you end up at about 3,000 euros/sqm if you stick to this standard. Thanks to KfW subsidies, we pay only 2,750 euros/sqm. But that is no longer available.

If you want to make a KfW 55 into a KfW 40+, you need additional insulation, photovoltaic system/storage. I have a quote for a 10kWp photovoltaic system including 10 kWh storage for 25,000 euros. Additional insulation maybe 15,000 euros. Count on 40,000 euros. So the house, if we had KfW40plus, would cost about 700,000 euros.

2021/2022, mind you WITHOUT land and without kitchen.