House construction 2021 financing €500,000 opinion

Good evening, we wanted to share our thoughts with you. We plan to build next year in November.
The plot of land is already in sight. We would like to do quite a bit ourselves, the father of my wife has his own company in the heating/plumbing sector. In our large circle of friends and acquaintances, there are many craftsmen, drywallers, carpenters, electricians, tilers, etc. Personally, we would support the interior work, painting, and small tasks.

An offer for a shell construction house already exists!
The house would be finished apart from the interior, which means drywall, heating, plumbing, electricity, floors, doors/frames, screed, stairs, and a few other small things.

Land cost approx. €185,000 including incidental costs

Shell construction 249 sqm, 2 floors / 6 rooms /
2 large bathrooms / 1 guest bathroom / no basement! €208,000 including a kitchen worth €12,000 as a free extra / base plate included.

Incidental costs for excavation/construction incidentals we have estimated at €15,000.

We have calculated the interior finishing at about €90,000 + own labor, since as already said we have many friends in the family, and I myself also work in wholesale and receive some discounts on building materials.

Garage and garden would not be planned initially, as we will most likely receive an inheritance from my wife’s side within the next 5 years.

Total costs €498,000

Income/Equity

My income approx. €3,640 net
Wife’s income approx. €900 net
1 child benefit: €192
Child construction allowance €120/month

Total: approx. €4,852 net
Currently, we save €1,500 every month, more would be possible.
Current rent €520 warm
At the time of the financing request, no outstanding loans!

Equity approx. €50,000
Buffer: €25,000 which we do not want to include in the financing for now.

What do you think, will we get a loan from the bank and what are our chances? What do you think of our calculation?

Thank you in advance

Best regards

You are young and have a good income, so you can probably afford a house. However, the plot is not cheap and the house is very large. Does it really have to be 250m²?

The big sticking point, I think, is to get a more accurate calculation of the construction, as well as not overestimating own and friends' contributions. Additional construction costs definitely seem very cheap. However, it depends heavily on the plot and own contributions. Overall, 300k for 250m², i.e. 1200€/m², sounds impossible even with simple equipment.

What kind of payment did you have in mind?

My last direct neighbor, about whom I haven’t told you anything here until now, is finishing his house himself because he is very special and probably lost all his companies/trades because of that. After 1.5 years, his house still looks like a shell. Meanwhile, he has a wife and child but still sits in his place from morning till late at night when he is there and does something.

Budget, move-in including completion are as uncertain as you intend and write. How do you come up with 90k€ EL?

Thanks already for your message.

I’ve calculated a bit more now, do you think this could be enough?

Drywall: €12,000 including labor
Sanitary/Heating: €55,000 including labor
Floors/Tiles/Doors: €15,000 including labor
Screed: €10,000 including labor
Electrical: €8,000 including labor
Stairs: €6,500 including labor
Painting and small jobs: €2,000

Total €113,500

As already mentioned, we get heating and sanitary at equity prices and my father-in-law will hardly charge anything.

I would buy the rest through my business, which is only a few euros away from the equity price.

Friends and acquaintances can be registered through the tax office, and there we will also not pay huge amounts.

What do you think, will we get a loan from the bank and what are our chances? What do you think of our calculation?

Loan yes. Own contribution at €50 hourly wage = 1,800 working hours = 45 working weeks of 40 hours each. No bank will go along with that. The only help is much more equity or higher financing with official allocation (which is not applicable in your case). Even buying into equity itself already costs a lot of money...

Children's construction allowance €120/monthly

The Baukindergeld is supposed to be extended until 31.03.2021. But you won't manage that, will you?