House construction: Equity / incidental construction costs realistic?

hello everyone,

my girlfriend (31) and I (28) are currently considering whether we can afford to build a house.

our current joint net income is 3600€. we currently pay 500€ rent together (including heating).

we already have a plot of land (worth about 90k - 100k €). we would like to build a house in the Bauhaus style with non-luxurious but good quality materials. about 150 sqm with 4.5 or 5 rooms without a basement. we might also skip a garage and build it later in about 5 years, since I assume I will get a better paid job by then.

for the mortgage payment, we were thinking of about 800€ - 900€ plus additional costs of about 200-300€ and then some savings on top. the whole thing should be paid off by retirement, so about 25 - 30 years.

my question is: is this realistic with the current income? I mean, I assume to make a salary jump in the next 2-3 years, but of course you can’t count on that. furthermore, you have to plan that there will be children in 2-3 years as well.

thanks for your answers.

hi,

doesn't anyone have an assessment for me?

thanks to you

What is the house supposed to cost? Just use an interest calculator and you will know if it works in 25 years.

Just as an example: at 4% 900€/month 170k€ = 25 years.

And with 170 you don’t get far.

yes, that's right, I have also already used the financing calculator.

my question is rather... is it realistic to build a 170k€ house with this salary?
what do you mean by 170k€ is not enough? what do you estimate such a house would cost, based on the criteria I described.

Whether this is realistic with your salary is something you have to decide. I think with 3600 net, it should be possible to manage 1200€ including additional costs. But it depends on whether it also works with one salary... etc.

You won't get far with 170.... the house costs, the incidental building costs come, the garden, the garage, the interior design, special requests, kitchen, furniture, painting work, flooring, earthworks, bridging finance, commitment interest, etc.
Not much will be left of the 170 for the house.

Have you used up the equity for the land or was it an inheritance?

The property would be purchased with the equity. So the equity is basically gone. We currently live in a granny flat of the parents. During the construction phase, they will certainly also relieve us somewhat with the rent. They did that with the other child as well.

So we are all quite skilled in the family when it comes to manual work. With my brother, we did a lot with our own efforts.

And we also want to leave out the garage for now.

There are just many turnkey houses for 150k € and when you then calculate 20k € for the incidental building costs.

Although I'm still not quite clear about what exactly is included in the incidental building costs. Some also count paint, floor coverings, and furniture in there. I don’t really see that as incidental building costs.

Thanks