Goal House Construction - Feedback Requested

Hello dear community,

just by reading along, one can already deduce some assumptions for oneself, but I would still be interested in feedback tailored to our situation.

Young couple mid/late 20s:
Target area: Brandenburg near Berlin

Plot ~ 105kEUR (purchase including brokerage / taxes etc. and ancillary construction costs)
Outdoor facilities ~ 15kEUR
City villa - 144m² living space ~220kEUR (I would also appreciate some feedback here, but probably better suited in another part of the forum)

Financing requirement: ~340kEUR
(Equity in the form of ~30-40kEUR available, but should rather serve as a reserve / own work will also be contributed in the form of all the classics like painting, tiling and laying laminate, and sanitary work)

Financial situation:
He: 3,200 net
She: 900 net (apprenticeship)
Current fixed costs: 1,300€ (portion rent warm 600€)
Living expenses: 1,100€ (food, travel, clothing, going out etc.) calculated as average values of the last 14 months from the household book

All in all, there would be 1,700€ spare
If I replace the rent with increasing ancillary housing costs, it would roughly break even, so the 1,700 would remain.

By nature, I am rather very conservative and prefer to calculate everything 4-5 times. It is probably also a negative trait that I am not very risk-taking.

Many greetings and thank you very much in advance

Regardless of the fact that in my opinion it is feasible, I would not bind myself to such financing:

- You are still in training
- Family planning
- No equity
- In case of doubt, the house will be more expensive than planned
- Full financing
- etc.

Hello HäusleBuab,

first of all, welcome to the forum. Since you apparently have already done some reading, you will surely know what’s coming now.

First, I would like to join nordanney. I wouldn’t do it either. 340 k is quite a hefty amount with that income.

1. No equity is always bad. At least the incidental costs should be paid from equity so that it doesn't become a 100+ % financing. Accordingly, you shouldn’t expect top interest rates.
2. Your partner is still in training. Many banks do not recognize training income. What if she is not taken on and doesn’t find a job immediately after the training?
3. Family planning has also been mentioned. Are children planned/desirable?
4. With 340 k, you should already plan at least €1,500 for the loan installment to be finished paying off before retirement. So that would also be quite a tight squeeze, especially since you should also think about reserves.

In my opinion, you should at least wait until your partner has finished her training and has a steady job.

Thanks for the feedback and yes, I expected that :)

The line of thought is rather to start early with the house construction than late.
One child planned, we would then have to move, and in Berlin you can't get away with rent under €1000.

My salary will increase by about €400 after the wedding due to the 3/5 division, would financing be basically possible on my own?

Then it looks like this:
3,200 net (without wedding)
Fixed: €1,000 (incl. rent)
Living expenses €600
= 1.6 margin

PS: [Baunebenkosten] I could also finance through equity

Best regards

Many things are possible, the question is only how sensible it is.

Changing the tax declaration class is all well and good, but please also consider that you might have to expect additional payments. But okay, let's assume you would have €400 more (is it really that much?), so we would be at €3,600. Maybe a bank would even lend you the money, but I still consider €340,000 to be clearly too much for that income.

Also keep in mind that when a child arrives, your expenses will definitely increase. Children cost money, a lot of money. That might be manageable in the first year and somewhat offset by child benefits, but at the latest when the child needs care, you will have to pay extra.

Starting early is all well and good, but you are not even 30 yet! Your partner will not spend 10 years in training either. So why are you stressing yourselves now and absolutely want to commit to a tight financing when you could maybe approach it much more relaxed in a few years (then also with significantly more equity)?

Maybe I am having a blackout right now, but I don’t understand:

How do you get from this:

Financial situation:
He: 3,200 net
She: 900 net (training)
current fixed costs: 1,300€ (share of rent warm 600€)
living expenses: 1,100€ (food, travel, clothing, going out, etc.) calculated were the average values of the last 14 months from the household book

to this:

Then it looks like this:
3,200 net (without wedding)
Fixed: 1,000€ (incl. rent)
Living expenses 600€
= 1.6 breathing room

???