House construction 2024, affordable with little equity?

Currently, I don't find it feasible. There might still be parental leave coming that makes it even tighter. The main problem in my opinion is the equity. What happens with the [Grundstück] if you don't build? Take a look at how much you can pay off this year, then you'll see how living with a "2k rate" is and whether that is okay for you. Additionally, you will have more equity then. It remains very, very tight either way.

Very interesting discussion, this is exactly what I hoped for with my post here! :) Many thanks already to all of you for your very constructive suggestions, thought experiments, and (personal) opinions and experiences.

I already thought that there would be both pro and con contributions here. I understand both sides, especially all those who currently refrain from building and do not want to take the risk. On the other hand, like , I also think that together we have a current net income of about +- 5k, and we are certainly not exactly poor with that. The question is how salaries, living costs, and construction prices/construction interest rates will develop in the next 18 months, which currently no one can predict.

We will now simply watch, wait, and pay down the land, and then see where we stand in 12 or 18 months. If we then go to the bank or to advisors and we are told "no, sorry," then that's just how it is; the land goes back and we have learned from it. If it works out by then, it would be nice, and if we fit with a suitable rate, we would also like to build. With my partner, it is planned that he will be promoted to team leader next year, but at the latest in 2024 — of course not yet fixed in writing. If that works out and we move towards a 6 - 6.5k net household income, it would also look somewhat different again. Provided, of course, that living costs and construction costs etc. do not rise by the same factor. But these are all still thoughts about the future; in 18 months, so much can happen. :)

Very interesting discussion, this is exactly what I had hoped for with my post here! :) Many thanks already to all of you for your very constructive suggestions, thought experiments and (personal) opinions and experiences.

I already figured that there would be both pros and cons here. I understand both sides, especially all those who are currently refraining from building and do not want to take the risk. On the other hand, I also think, like , that together we have a current net income of approximately 5k and we are certainly not poor by any means. The question is how salaries, living costs and construction prices/construction interest rates will develop over the next 18 months; right now no one can predict that.

We will now just wait and see, pay down the land loan and then see where we stand in 12 or 18 months. If we then go to the bank or advisors and are told "no, sorry," then that’s how it is, then the land goes back and we have learned from it. If it works out by then, it would be nice and if we find a suitable rate, we would also like to build. My partner is supposed to be promoted to team leader next year, at the latest in 2024 – of course not fixed in writing yet. If that works out and we move towards a 6–6.5k net household income, it would look a bit different then. Provided living costs and construction costs etc. don’t increase at the same rate. But these are all still future thoughts; so much can happen in 18 months. :)

That is a good plan. But keep in mind that good and affordable GUs have a very long lead time of at least +12 months, so you would have to start planning next year.

I am sometimes surprised at whose forum opinion swings in one direction or the other. (Have wondered in both directions already) 5000 net and apparently not in the profession that long, I then do not find that so little that it seems to me like an absolute impossibility. Especially if savings continue now. But yes, sure, planning a house and setting financial limits is not really fun right now.

you forget that 5k net in this constellation is simply not sufficient. Here are some more points:

* Desire to have children, thus loss of income if part-time and higher child costs (child benefit is by far not enough)
* Plot not yet paid off, new house construction would be a subordinated financing with worse conditions
* Building interest rates are rising
* Construction prices are rising
* Equity can only be saved by renunciation

For us, the starting signal for owning our own property was a consultation appointment at our bank, where we reviewed our assets and income situation and the bank prepared the standardized household budget for us. It turned out for us that, in addition to our warm rent, we could save an additional 1,200 euros per month. Our savings rate was previously significantly lower. We then wrote this amount down boldly on our Obligo and placed it right at the front in our bank folder. From that day on, we significantly increased our savings rate to reach this amount and thus realize the goal of owning our own property.

Visualizing this number and the conversation at the bank did us a lot of good back then. Maybe that’s something for you too.

Otherwise, I assume that as a beginner in the public service [öD], your salary will increase significantly over the next few years, which will provide you with an additional buffer.

* Grundstück noch nicht abbezahlt, Hausneubau wäre eine Nachrangfinanzierung mit schlechteren Konditionen

This can be well summarized as one loan since the land is financed variably. And if the two of them get serious with a high savings rate, then in almost 2 years there will be almost nothing left.