House construction 50,000€ equity/net income: 2,500 Euro possible?

Hello everyone,

We would like to introduce ourselves briefly:

We are a young couple, both 25 years old. We have been thinking about building a house for quite some time. (Massive/Prefabricated house, both are not bad) In Saxony. We want to build a turnkey house where nothing more needs to be done except maybe wallpaper and flooring. Our idea would be a bungalow of about 110 m².
Plot about 600-800 m², prices range from 20 euros - 40 euros per m².
We have a combined income of 2,500 euros: me 1,500 euros, wife 1,000 euros.
We have equity of 50,000 euros.

Our questions:

- Would it be possible to build a house (turnkey) with plot including all additional costs (notary, property tax, connections.....), garden, kitchen and everything that belongs to it for 200,000 euros? So 50,000 euros equity, 150,000 euros loan.

- Would we even get a loan of 150,000 euros? (We have a bank appointment soon)

- If that is not feasible, what costs should we expect?

We already thank you for your HELP!

Best regards

Hello, of course, the whole thing varies from state to state, and your own needs also play a role, but with that amount you can definitely build a turnkey house. Maybe not self-designed with architects and so on, but as a prefabricated house. And also some banks should cooperate, provided that it is calculable for them (income, expenses, [Grundsicherung für 2 Personen, Versicherung, Rate, Bewirtschaftungskosten...])

It's going to be tight - but I would guess it's possible - at least with 110 sqm.

700 sqm at €40 + additional purchase costs and possibly notary ~ €32K
€40K construction ancillary costs
That leaves €1200 / sqm - maybe better to calculate with €1400 / sqm and possibly take on €30K more?

From the bank's side, there should be no problems if there are no fixed-term employment contracts. 3% repayment and 2.5% interest would be, for example, a burden of €690 per month.

Now a few questions:
Do you want children? Then 110 sqm might be a bit too little
Do you want to commit forever? That's more serious than a wedding
See what offers you get and ask yourselves if the standard is enough for you.

Hello tooly26,

That doesn’t sound bad at all. We don’t really have that many expenses, two Riester pensions, a car, 2 mobile contracts and a couple of insurances.

We just wanted to hear a few opinions because we were told that you need to have a net income of 4000 euros.

Thanks for the answer.

Hello BeHaElja

Thanks for the answer!

Definitely one child! No more.
( if they’re not twins )

We would also like more than 110m2
but we think that is not feasible with our budget. ( which is why we are here ) besides, in old age that can’t be wrong either, better a bit less than too much.

Yes, you want to commit forever! Otherwise you wouldn’t think that far ahead. You can never plan what happens in life, if it should ever end. But if we thought like that, we might as well not do it at all!

How much net income is needed depends heavily on the region and the desired house. 150 m² in BaWü certainly requires around €4000 net – however, with a 400 m² plot, they also cost about €450K (numbers just pulled out of thin air – with your €50K equity that would be a monthly installment of €1850). With your €50K equity and the €150-180K loan amount, you even have a good financing margin. As an exercise, you could keep a household diary for 2-3 months and see how many expenses you really have monthly.

Yes, the idea of the household diary is a good one. We have a Sparkassen appointment soon anyway regarding joint account management, after that we will tackle it.

Thank you!