House construction costs and financing

How do others afford bigger houses? More equity from the family, more personal contribution, a better timing regarding costs and interest rates, more debt, cheaper land... stuff like that.

The fact that you now suddenly pull a secure imminent inheritance out of the hat unfortunately makes the initial post worthless, just like a high level of personal contribution.

But I stick to my point and my criticism shows it: better and more honest planning creates more security for the success of your project.

I looked it up again, you are a master craftsman? In what kind of trade? If it has even the slightest connection to construction, maybe something can still come of it, although I would almost say to sell your experience and hands rather to other builders and pay your journeyman overtime on your construction site. If it has nothing to do with construction, at least it would be possible that you don’t mess up the self-performed work as badly as the average office drone. Oh, and one more thing about inheritance: I would never plan on that. Because people are living longer and becoming more in need of care. A house is "consumed" faster than the banker can say foreclosure...

40/40 were according to the initial post the working hours (age 31, 28).

Sorry, reading properly would have been better. That point is then settled.

The loan consists of 3 partial loans. The largest amount of €280,000 has a fixed interest rate for 30 years. €100,000 for 10 years. And €150,000 KfW 10 years. A house inheritance is in prospect. In the foreseeable future.

Wow, then after 10 years still a remaining debt of €230k. What will you do if the interest rate is then 4%? Really high risk with the minimal repayment.

I don’t know how it is with you but I know people who earn less (compared to me) but still build the big house. (I’m not a hater) But I wonder how is that possible?

Equity? From wherever.

I don't know how it is with you guys, but I know people who earn less (referring to me) but still build a big house. (I'm not jealous) But I wonder how that's possible?

I've wondered that too :D My main feeling is "it comes as it comes" and "accept residual risk, just do it, as long as the bank says yes."

Of course, there are also factors that you only see more or less from the outside. Financial injections from the family have also been mentioned enough.

From the generation above us (yeah, yeah, the situation was different back then bla bla) I also know a lot of situations where not everything went 100% smoothly. It starts with "the landscaping still looks like nothing five years later," goes on with "when kids 1/2 were there, there was basically no money left," and also includes things like the family who said "we'll do it bit by bit after moving in" and after 10 years they were still nowhere near where they wanted to be, and then there's also not to forget the couple who separated a year after moving in because they wore each other down. These are all real examples of people I know personally (extended family, or close friends of my parents and in-laws), so no hearsay from acquaintances of acquaintances or anything like that. Of course, there are also plenty where everything goes smoothly, but often there are compromises here and there that you make. You just don’t always see them right away from the outside.

Sounds all pretty terrible now, but on the other hand: they still found their happiness. That's what I mean by "The perfect time never really exists anyway, life just has its obstacles." Of course, no one should jump headfirst into their doom (there are one or two where I had that feeling ;)), so the warning about risks and tight spots is definitely appropriate and you can definitely look for ways to minimize them. But you can also decide to build despite the risks. Recently there was also a comment somewhere here along the lines of "I deliberately didn’t put the financing up for discussion back then because everyone would have argued against it." The forum here generally tends to be more on the safety-oriented side when it comes to recommendations. (But I prefer that over “yeah yeah, definitely go for it!” when the gut feeling says “tight pants”)

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I looked it up again, you are a master craftsman? In what trade?
If it has even the slightest connection to construction, maybe something can still come of it, although I would almost say in that case too, better sell your experience and hands to other builders and pay your journeyman overtime on your own construction.
If it has nothing to do with construction, at least it is possible that you won’t mess up the self-performed work as badly as the average office jockey.

Oh, and one more thing about inheritance:
I would never plan on that. Because people are living longer and becoming more in need of care. A house is "consumed" faster than the banker can say foreclosure...

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Sorry, reading properly would have been better. That point is settled then.

Wow, so after 10 years you still have a remaining debt of €230K. What will you do if the interest is then 4%? Really high risk with the minimal repayment.

Equity? From wherever.

Indeed, it is a high risk. And no one knows how long we will still have these low interest rates...

I've wondered about that too :D My main feeling is "what will be, will be" and "accept residual risk, just do it, as long as the bank says yes."

Of course, there are also factors that you only more or less see from the outside. Financial injections from the family have also been mentioned plenty of times.

From the generation above us (yeah yeah, the situation was different back then blah blah) I also know a lot of situations where not everything went 100% smoothly. It starts with "the outdoor facilities still look terrible five years later," goes on with "when child 1/2 was there, there was practically no money left," and also includes things like the family who said "we'll do it little by little after moving in," and after 10 years they still weren’t anywhere near where they wanted to be. And then let's not forget the couple who split up a year after moving in because it wore them down. These are all real examples of people I know personally (extended family, or close friends of my parents and parents-in-law), so not hearsay from acquaintances of acquaintances or anything like that. Of course, there are plenty for whom everything goes smoothly, but often there are compromises here and there. You don’t always see them right away from the outside.

This all sounds pretty terrible, but on the other hand: they too found their happiness. That’s what I mean by "The perfect time never exists anyway, life just has its difficulties." Clearly, no one should jump headfirst into their doom (there are a few cases where I had that feeling ;)), so the warning about risks and where it gets tight is certainly appropriate, and you can definitely see where you can minimize them. But you can also decide to build despite the risks. Recently there was a comment here somewhere like "I deliberately didn’t put the financing up for discussion because everyone would have argued against it." The forum is usually rather safety-oriented in its recommendations here. (Which I prefer to "yeah yeah, definitely go for it!" when your gut feeling says "tight spot")

I also tend not to want to build at the moment. Before Corona it was different, but now you have the chance to get a plot of land and prices have gone up again, no idea, 20%? well, it fits as you say, there’s never the right time.