House construction 2021 financing €500,000 opinion

What I mean is that construction prices could be 5-10% more expensive next year than they were last year. With a house price of €350,000, this amounts to between €17,500 and €35,000, potentially more than many can save during the same period. In this case, the savings are lost to inflation and only serve as equity leverage for a loan. Not a nice development.

But I wonder how all those people do it who now don’t have 100k equity and no more than €4000 net per month, which is also not common for a family with a child. And how they also do a lot of the work themselves and many people have the house delivered turnkey even though it is significantly smaller in square meters.

So we have roughly similar conditions. Currently €5k net, but if a child comes at some point, we won’t be much over €4k either. Our equity, however, is €200k, which is quite a difference. We are also calculating with €470k costs plus the land. We are building 160 living area and 80 usable area, so roughly comparable, with a lot of self-performance. What is really insane are the 3 bathrooms plus guest WC. We have a bathroom plus guest WC and the preparation for a guest bathroom. We will do that if the costs haven’t gotten out of control by then. But why do your children need an additional separate bathroom again??

Overall, I can tell you how it is around us, but we also live in an expensive area. 1.) Almost everyone was supported six-figure by their parents. 2) Most earn significantly better than we do. For example, with friends, each of the two earns over 100k, so over €5k net at DAX companies. The additional €5k are €600k more than we have in 10 years, and that obviously helps immensely.

The "I want that too" factor shouldn’t lead to someone rushing into doom themselves with significantly worse conditions...

The average gross income of a household in Germany was just under €4850 in 2018. Anyone earning €6000 gross monthly as an employee clearly belongs to the higher earners. How "special" that is certainly depends on the focus group of one's own environment. The figures already show that building a house in Germany is only something for households with well above average income.

The average income also includes many people who unfortunately earn very little and for whom home ownership is unattainable. An interesting question would be what the average gross income is of people who have bought or own their own house. And even here one could differentiate strongly between people who have only inherited, own an apartment, or have actually built a detached house. The latter would be the only figure that is interesting for comparison. Maybe even normalized to built m² ;)

But I wonder how all the people do it who now don't have 100k equity and don't earn more than €4000 net per month, which is also not common for a family with a child.

I am roughly "all those people" and my house cost half of what the forum community here (rightly) estimated for the planned palace. However, it also has less than half the square meters. With €6000 gross (per person who earns - not as household income) you are scraping the "top 10%" in Germany. You can find corresponding graphics if you search the internet. Because you often have people with similar salaries in your circle of colleagues, high earners often consider themselves middle class...

1 child benefit: €192

ah ha. apart from the fact that the numbers are not correct, I consider the income too low to think about building a house.

ah ha.

apart from the numbers not being correct, I consider the income too low to even think about building a house.

Yes, the numbers have already been corrected - about 100,000 more...

I am roughly "all those people" and my house cost half of what the forum community here (rightly) estimated for the planned palace.

I also belong to the others:
First house in the DM era, (at that time DM can roughly be equated with Euro)
50k equity, 50k family loan, bought a semi-detached house, I was just over 30 at the time. That was a good starter used property, and I would do it again today. Plot 250 sqm, carport 150 meters away.
Financing about 250,000€, with 5.5%...
Current house construction (2013): 195,000 plus flooring etc... maybe in total 230,000... the surplus was paid from an inheritance (inheritance unknown at the time of the plot reservation)
Plot: leasehold, deliberately selected because of the missing loan. Age: 45/55, net income 2013: 4,500€, financing amount 207,000€.