Home financing - please provide an assessment

Hello, my husband and I are planning to build a house in a newly developing residential area near us. Here are some key data about us; I ask you to provide an assessment of the possible financing framework based on your experience.

About us: M (30) & W(30), 1 child (6 months) M: engineer, beginner in the profession with a permanent employment contract, currently €3,000 net (without bonuses, without special payments) W: currently on parental leave, afterwards presumably working part-time with about €1,700 net. +€250 child benefit

total: €4,950

current expenses: fixed costs + savings rates €1,500 groceries: €500 fuel: €200 = €2,200

equity capital of €100,000 available.

Desired is a single-family house, land price per square meter approx. €250 - what is possible for us?

-what's in it for us?

Purely theoretical, because unhealthy calculation: Let's start and buy the plot, 500sqm plus ancillary costs are about 135k. That definitely uses up the equity capital. Then we assume that parental leave ends again by the start of construction and you have to live on about 5k net (plus bonuses). With 5k net, the bank would calculate 2.3k for living expenses, so you have 2.7k left for the house. If we assume you pay an annuity of 5% – so a term until retirement – then with 2.7k you can afford a house of 650k. With 650k, about 165sqm house plus garage plus ancillary costs plus outdoor facilities all in are affordable (assuming a normal plot). Then no more work needs to be done. Realistically, however, you should consider a semi-detached house with rather max. 125-140sqm and a smaller plot (maybe 350sqm). Then you would basically pay the plot in cash and the house would then cost about 500k all in with a rate of 2,100€. In my opinion, that's the limit of what you can do. If maybe you contribute some own work or replace the garage with a carport etc., it becomes reasonable. Have you ever thought about a used property at the start? Personally, that would be the more attractive choice for me. Given the plot price, prices for used properties should be moderate. With a child you probably want to live well too and not just work for the house.

There are plenty of subsidies for you. Which federal state?

There are plenty of subsidies for you. Which federal state?

Lower Saxony Are you referring to the KFW programs?

Among other things. There is also Baukindergeld or the homeownership promotion of the NBank.

Before thinking about the semi-detached house, I would first check out the classic discount stores. Town & Country, Heinz von Heiden, etc. I trust a 30-year-old engineer to provide a solid amount of personal labor, both physically and professionally (in the sense of the ability to acquire and understand what matters and what doesn’t).

With that income, it won’t work anyway without personal effort. I consider anything over a 2,000 EUR installment pure madness, then there would still be 3,000 EUR left. For living, car, vacation, clothes, furniture, repairs, electrical appliances, etc. 3,000 EUR is not as much today as it was 4 or 5 years ago... one should not forget that.

I am always amazed by the insanely low expenses for food. Do you all fish in the supermarket dumpster in the evening? 500 EUR for 3 people is on welfare level. The standard rate for food and drinks is 195.35 EUR... I never believe you can really manage with that. That only includes store brands and discount stores; even a kebab would already blow the budget...