House building - Is it realistic?

Income woman: 3050 net (I have now excluded the private health insurance, this seems to confuse many...)
From now on, however, there is 3200€ net,
Civil servant

Income man: normally 1600€ net, currently on parental leave

Child benefit: 190€ (a son, 2 years old)

Expenses currently:
700€ cold rent
Additional costs including electricity: 970€

Of course, there are also all other expenses such as
mobile phone, telephone, internet, insurances (also occupational disability insurance etc.), groceries, etc.


During the time I am on parental leave (we want a second child), we will have about 3600€ income (including child benefit).

Afterwards, we aim to have 4000-4500€ net including 2x child benefit. Later, we will certainly both work full-time again.

According to the new credit guideline that has been in effect since March 2016, the bank may only consider what is here and now. So, what might happen later is irrelevant for the loan application.

It has been quite some time since your first post. Have you spoken to a bank or a financial advisor in the meantime?

That we have to restrict ourselves is totally clear! We have absolutely no problem with that. We have just observed what our expenses are without (!) restrictions.

Yes, we have spoken with a bank employee. But not in detail.

Do you think it is impossible for a civil servant with 3750€ net (that is the amount before private health insurance and, of course, other insurances are deducted) plus 40000€ equity as property (plus 20000€ for additional expenses) to get a loan of about 250000-300000€?

Don't worry about what is said here. Just go to a bank and ask. A civil servant status is a safe bet for a bank, plus equity... I don't really see any unavoidable problems. Sit down with the bank employee again and this time go into detail.

Hello,

A civil servant status is a safe thing for a bank,

As far as the income side is concerned, yes, as long as one is a civil servant for life. On the expense side, the borrower is solely responsible. Because the loan also has to be paid back.

Don't worry about what is said here.

I don't understand that now. Whoever asks gets answers, including those that do not meet one's own expectations. You have to expect that. But ultimately only a bank can say whether the project is financially feasible from their point of view or not. This is hard to discuss here. If that is what you meant, then I agree with you.

Kermit

Do you think that as a civil servant with €3750 net (this is the amount before PKV and of course other insurances are deducted) plus €40,000 equity in land (plus €20,000 for other expenses) you can't get a loan of about €250,000–300,000?

The PKV is deducted directly from the €3750. Rather, a risk is factored in that the PKV could become significantly more expensive in the future.

My statement referred to the other income you will have in the "near" future. The bank cannot include that.

By the way, is it supposed to be just the Energy Saving Ordinance or possibly KFW 55 or better?

Assuming you need €300k (at the beginning we were only at €200k).

Then you have to calculate €995 with 10 years fixed interest at 1.3% and 2.5% repayment; with 15 years at 2.19% and a rate of €1255; and with 20 years at 2.66% and €1380.

And on top of this rate, add another €375 for incidental costs + reserves. (for 150 sqm living space)

That makes €1370, respectively €1630, or €1755 per month; depending on how much interest rate security you want.

Possibly with KfW it will be a bit cheaper. For example, with KfW 153 (€100k with 20 years and 30 years term), and the main loan at 20 years, it's €1200 + €375 = €1575.

I would advise against 10 years; so about €1500 a month have to be put on the table. NOW. Then you will be done in 30 years. If you want/need to be done earlier, correspondingly more.

Now take a look at your household budget and really look inside yourself.

You will certainly get money from the bank; the question is only whether you want that.

A civil servant status is a safe bet for a bank, plus equity...

Sure. Of course, there are risks that do not apply to civil servants. But still not immortal and especially when it comes to work ability up to the scheduled retirement, sometimes also somewhat fickle.