House Construction Financing Assessment

Good day,

we have found a great piece of land and are considering whether we should buy it.
Here are the facts:
We are both 27 years old and earn about €3800 net. I (m) €2300 and she €1500. I do not count special payments, as these are intended for vacation and leisure.
No children! But planned within the next 2 years.
Equity about 50K. Trend is rising.

The land costs 80K. (550sqm)
In total, we do not want to spend more than 320K, i.e. the house should not cost more than 240K including (Kaufnebenkosten und Grünanlage). A basement is not desired. Of course, we would have nothing against a garage, but it is not a must. Desired area about 130m²
Now the question: Can you get a nice solid house built for 240K including incidental costs?

I would appreciate answers.

Overall, we do not want to spend more than 320K, meaning the house should not cost more than 240K including (purchase incidental costs and landscaping). A basement is not desired. We wouldn't mind a garage, but it is not a must. Desired area approx. 130m²

So the plot costs 80+10K€ incidental costs (you never know where and if with a broker)

That leaves 230K.
Green areas min 20K
Garage 10K
There are still 200K left
Minus 30-40K building incidental costs, there are still 160K.

Roughly, one should calculate 1600€ per sqm. That would only be 100 sqm.

That means you need to reconsider. But roughly estimated, there is still a gap to fill.

hello financing 250k with 3800 net is okay BUT when children come part-time etc it gets tighter.

Whether 240k is enough for a solid house the building experts know, off the cuff it's ambitious...

The 50k equity is good for you with this income. It's TOP

Green areas min 20K Garage 10K

You don't have to spend 20,000 euros on the garden and you can also build a garage later.

Regards Sabine

I regularly hear that a garage can be built later and the garden can be done later (this was not a point from you, Curly). Then I always wonder, how is it supposed to be paid for if it cannot even be co-financed?

Thank you very much for the answers. Equity has accumulated because we only pay 350€ warm + electricity!!!! Yes, that still exists :) But it is also only 50 sqm. Maybe the idea would be better to buy the plot of land and then build in about 2 years. I also don't think the interest rates will change drastically in that time, or what do you think?