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Hello everyone,

For some time now I have been thinking about slowly moving out of my parents' house. I have completed my Abitur and also finished my vocational training. Currently, I have had a permanent position in the public sector (at a large hospital group) for half a year – with good prospects. A few weeks ago, my parents approached me and told me about the idea of building a small single-story house in the large back part of our garden. My parents have had this idea for the future for a long time, but I was too young back then to deal with it.
I would get that part of the property for free (possibly I would even be given full ownership of the entire property to save costs; my parents would then basically receive a right of residence from me for the already existing house – so I would essentially inherit earlier), and my parents are giving me the option to swap the houses in 10-20 years if it becomes too small (for 2 children it would be from a certain age).
They would then also have the advantage of a single-story house in old age.
The house would be about 75-80 sqm and would cost around €140,000 built to KfW 70 standard (air-water heat pump, underfloor heating, triple glazing, and good insulation). (Water and electricity lines as well as a rainwater basin [new regulation in our development plan] that need to be installed in the garden are not yet included – although much of that can be done by ourselves, since my father just retired and has no problems with such things). Overall, I expect costs of around €150,000-155,000. Apart from the property, I have equity of about €22,000-25,000 depending on when the house is built (I have been saving €800 per month since I got my permanent job) – autumn 2014 would be great.
Since I will probably move in with my girlfriend, with whom I have been together for 4 years (it would be over 5 years at the start of construction), she will probably contribute around €10,000-12,000, which results in equity of about €35,000 plus the property.
This means I would have to take out a loan of the remaining €120,000.
I would probably get about €50,000 of that at a quite favorable rate from the KfW bank.

I think the additional costs will stay within a reasonable range given the house size and energy standards.

I am 23 years old and my current net income is about €1,400 (18,480/year with 13.2 salaries – although the 13th salary is almost like the Riester pension plan). In 2 months, it will rise by about €100 net per month and in another year by about €120 net (fortunately in the public sector you know this in advance, so planning is easy) – plus I will probably start doing on-call duty in 6 months, which adds about €150 net/month. All in all, in about 1 ½ years (which roughly corresponds to the start of construction), I will have about €1,650 (if the on-call duty doesn’t work out) or €1,800 net (with on-call duty) with 13.2 salaries. My girlfriend still has 1 year left in her training, so I can’t say what she will earn afterwards, usually around €1,000-1,100 net.

I hope I was able to clarify this whole mess a bit and would appreciate your opinions.
What do you think of the idea? Is it feasible?

I don't want to say anything about the little confusion, others can do that this time.... BUT:

please do not include on-call times in your salary, as they are variable, unstable, and not secure in the long run. Rather, consider this money as a pocket money bonus or vacation fund (speaking from my own experience, even though 10 years of shift work in the public service is constant... nevertheless, these compensatory payments are not counted towards security).

In any case, keep your girlfriend’s money out of it. She can contribute things for the interior design, which she might later be able to take with her, if it comes to that. Everything else is a bureaucratic act. 1400€ net is not a large amount to have available to you monthly. And the fact that you can currently put aside 800€ monthly probably only comes from the fact that you still live at home. You have to maintain your own apartment, with your own shopping and possibly a car, and then your income shrinks significantly. Regardless of the house size, you will have about 300€ every month in additional costs for taxes, garbage, water, electricity, and heating. Don’t forget insurance. Then you have to expect a rate of about 600€, and hope that your project doesn’t suddenly get more expensive along the way. How old is the parental home? Is it modernized from time to time? Because keep in mind whether you actually want to move in there in 10 years. Ask your parents about the current monthly additional costs for heating and maintenance. How old is the heating system and what is used for heating? In the case that you and your girlfriend maybe get married and have children, the bungalow can very quickly become too small. And not only will your house then be too small, but also your salary. I am sure your parents mean well, unfortunately they haven’t thought it through completely.

Keep the girlfriend out of the financing (this has already been said). Depending on the relationship, I don't find it so bad to live on your parents' property. See to what extent your parents can step in in an emergency – or don't set the repayment too high. You won't manage permanently with 400 € per month.

Hello,

Keep your girlfriend out of it in your young years. Otherwise, good idea. Whether that will work out financially... well