Home construction financing with a primary earner

After quietly reading along for a long time, I am now daring to approach the topic of building a house quite concretely. We have found a plot of land in a "small" large city in the southwest of Germany.

Since I always read incredibly honest and meaningful evaluations of projects in the forum, I wanted to present our situation once and look forward to honest feedback:

General information about you:

[*]Who are you? A family of 5
[*]How old are you? 37 and 44 years old
[*]Are there children? Yes, 3 - no more planned
[*]Are children planned? - no
[*]What do you do for a living? He - software industry, She - currently housewife and mother (450 Euro-job)
[*]Are you employed, self-employed, retired, housewife, househusband, etc...
[*]How many hours do you work? He - 42.3 hours, She - 10 hours

Income and asset situation:

[*]What income do you have (gross/net)? Net: He: 5500 Euro She: 250-300 Euro (should increase in the future)
[*]How much child benefit do you receive? 663 Euro
[*]Other transfer payments such as parental allowance, sick pay, etc...? 0 Euro
[*]How much equity do you have? 240,000 Euro
[*]How much of that equity do you want to invest in the house project? The land will be paid from the equity – so all of it

Expense situation:

Housing costs:

[*]current cold rent - 1600 Euro
[*]current warm rent - 1800 Euro
[*]electricity
[*]gas
[*]water, sewage, garbage fees, street cleaning -
[*]phone, internet, mobile phone - all together 640 Euro (TV license fee [GEZ], chimney sweep, garbage, heating, heating maintenance, etc....)

Mobility costs:

for 2 cars and children’s tickets (in the future): 530 Euro

Insurance costs:

ongoing insurances and upcoming ones (such as life insurance for the loan and building insurance): 195 Euro

Living expenses:

[*]groceries
[*]restaurant costs
[*]personal care/drugstore
[*]pets (food, doctor, medication, stable costs)
[*]medication
[*]clothing
[*]furniture
[*]daycare/school fees (and meal money)
[*]tutoring
[*]school materials and books
[*]club fees/gym
[*]babysitter
[*]toys
[*]cleaning
[*]TV/video/audio/CDs/DVDs
[*]tickets (football, cinema, concerts, etc...)
[*]donations
[*]miscellaneous

all together: 2000 Euro

Savings:

[*]vacation
[*]house
[*]retirement provision
[*]hobbies/gifts
[*]miscellaneous

planned: 800 Euro

Other expenses:

[*]Alimony payments?
[*]Loans?
[*]Other?
[*]Anything forgotten? Then state it here!

Income and expense totals:

[*]total income 6400 Euro
[*]total expenses 4300 Euro (current rent not considered and things like accrued property tax added)
[*]balance 2100 Euro
[*]thereof sum of cold rent and dispensable savings (e.g. savings rate for house)

General information about the property:

[*]How big is the plot? approx. 730 sqm
[*]What are its dimensions?
[*]What is the standard land value? 250 Euro for neighboring plots
[*]New build, old building (year built), house type? New build
[*]Garages? a double garage
[*]How big is the house? (living area / usable area) 175 sqm
[*]What is the market value of the plot and house after completion? Plot: 220,000 Euro House: 175*3000 = 525,000 Euro + incidental costs 10% = 577,500 Euro

Construction or purchase costs:

[*]Plot costs including all incidental costs: 220,000 Euro
[*]Construction or purchase costs (including architect, structural engineer): 577,500 Euro
[*]Outdoor facilities/terrace, paths, garden design, fences etc... That will probably all have to wait a bit
[*]Financing costs (e.g. fees or provision interest)
[*]Total costs

Other costs:

[*]Kitchen costs: 20,000 Euro
[*]Furniture, lamps, decoration: 10,000 Euro (from equity)
[*]Other "non-earned income, secondary earned income, construction or incidental construction costs"

Cost summary:

[*]Total costs: 800,000 Euro
[*]Deductible equity: 250,000 Euro
[*]Financing amount 550,000 Euro

Is such financing possible? That is, 550,000 Euro over 20 years mainly on one salary? Assuming that at least a small second salary will come in.

I look forward to input from you.

My God, the rent is high. In my opinion feasible, repayment, interest, and ancillary house costs should be possible within the scope of the rent amount.

Do it.

We found a plot of land in a "small" large city in the southwest of Germany.

Stupid question, but you don’t mean Freiburg, do you? Because the plot seems very cheap to me :).

I see that as quite doable: good amount of equity, good salary. That is all enough even for only 20 years until retirement. But it is already quite a chunk more per month, about €3000 warm just for housing.

I see this as quite manageable: good amount of equity, good salary. That's enough even for just 20 more years until retirement. But it is quite a bit more per month, about €3000 warm just for housing.

But how do you get to €3000 warm? With the financing amount, one should manage with a loan installment of around €2000. Additional costs perhaps another €400.

Hello,

I also think it is doable and I know that 2 families in our development area have financed similarly. The women are completely at home.

I just wondered if they would still manage if the [Ehegattensplitting] is removed. But a [Familiensplitting] with 3 children might initially improve the situation until the children are no longer eligible. We will see what happens.

In an emergency, you can also sell a house again when the children have moved out, so it’s all a matter of perspective.

Otherwise, in your place, I probably wouldn’t build 175 sqm right away. We also have 3 possible children's rooms and a study with 160 sqm. Especially since outdoor facilities are not planned. Don’t you want to enter the house without mud and have dinner on a terrace?