Home financing with a low salary?!

People really still believe you can build a house for 250k including land and ancillary building costs

If things go well, you can still manage that in some regions of Germany with a few limitations. However, not with the demands and wishes that most TEs here have. We managed with 300k € for the land, a 125m² Kfw 70 house, and ancillary building costs including a 9m long double garage and the completion of the outdoor facilities. If you forgo the double garage and complete the outdoor facilities yourself, if the land is located at AdW, if you limit yourself to the necessary square meters and are fine with the standard program of the house building companies, you can still build a house for a low price. Of course, this is becoming increasingly difficult with the new energy saving regulation.

We had also once thought that with our saved equity of €300,000 we could pay for the land and house out of our own pocket.

In the end, with the outdoor facilities (garden not yet finished), we ended up at €520,000:

- €100,000 for the land
- €365,000 for the house with double garage
(185 sqm living space, including additional customizations, painting work, kitchen, new furniture, lamps, and other purchases)
- €40,000 ancillary construction costs
- €15,000 outdoor facilities

Hello,

.... the plot at AdW is limited in the required m² and can manage with the standard program of the house construction companies, he can still build a house for cheap money.

It actually depends on the land costs, as well as the clients’ desire for nice to haves, what a construction project ultimately costs.

Your house costs, for example, today EUR 182 thousand as a KfW 70 efficiency house with medium standard; without painting work and flooring. If I now calculate the typical additional building costs on top, it will, in my opinion, be very tight to find a plot that keeps the budget within the range of EUR 250 thousand. It also doesn’t help to acquire a plot at AdW cheaply if the buyer’s fuel costs will eat it up.

These days, I see EUR 350 thousand as the lowest limit to realize a construction project. Those who are content with simple architecture, can paint and tile themselves, and also have patience to do the landscaping later, can fulfill their dream of a house within this budget.

Rhenish greetings

Hello,

It actually depends on the land costs, as well as the wishes of the builders for nice to have features, what a construction project ultimately costs.

For example, your house costs today EUR 182,000 as a KfW 70 efficiency house of medium standard; without painting and flooring. If I now add the typical additional construction costs on top, it will in my opinion be very tight to find a plot that keeps the budget within EUR 250,000. It’s no use buying a plot cheaply at AdW if the buyer is eaten up by fuel costs.

These days, I see EUR 350,000 as the lower limit to realize a construction project. Those who are content with simple architecture, can paint and tile themselves, and also have patience for landscaping, can fulfill their dream of a house within this range.

Rhine regards

Then there is still hope for me :)

Hello,

yes, meanwhile it has become quite tight for average earners in urban areas if they want to build a detached single-family house.

We were lucky to receive a plot of land as a gift from the family, but in the end, with the demolition of the old building and the redevelopment of the plot with all ancillary costs, as well as garages, kitchen, etc., we went significantly over our originally rather naively planned budget of TEUR 400...

Just for understanding, we gave up on the TEUR 400 budget long before signing the construction contract...

A friend (not involved in the construction) architect once told me during the planning phase: "Now tell the company what you envision – this is the great wish concert. Afterwards, the company tells you what your dreams cost – then you first have a big gulp and then comes the great cutting concert..."

That pretty much was exactly how it went.

Despite some unfulfilled wishes (BUS system, whirlpool tub, etc.), we are now more than happy in our house and look forward to coming home every evening.

Regards,

Dirk