House construction financing - What is possible and realistic for us?

Hello everyone,

I have a question that is currently occupying us!

We, my wife (32) and I (31), are considering building or buying a house!

Regarding finances:

Husband's salary: €2500 net
Wife's salary: €1800 net
Equity: approx. €90000

Currently we pay €500 warm rent and save €1000 every month (building savings contract, funds)! (We live rather frugally)

Since we want children, we are planning for my wife to become pregnant soon!

The plan is that my wife stays home for 1 year after the birth and then returns to work part-time at 50%! Since I work in shift rotations (early/late), we could save on daycare!

She has already spoken to her current employer about this and he has made her a preliminary offer of €950 net!

So we would have an income of €3450!

We would have the option to build in my parents' garden, meaning we would have a free building plot! However, this would be in a village with 200 inhabitants and the negative side still predominates!

What do you experts here in the forum think? How much could we afford?

Thanks in advance

What speaks against the 200-inhabitant village?

First of all: It's not that there is no store or infrastructure there! We drive by car every day anyway. My problem is rather that about 80% of the people living there are elderly (over 50)! And I fear that the place will eventually "die out."

I grew up there and really had a great childhood/youth there! But at that time, there were peers in the immediate neighborhood! And since there will be no new development area there in the foreseeable future, I see it very bleak in that regard!

Since we cannot afford a building plot with a new construction and it currently looks very bad with houses for sale, it will probably come down to the village!

Regarding what we can afford: I would say that a rate between 1100 and 1400€ could be realistic for you. With this, a loan amount of 250-300k€ should come out with a "normal" term. Your equity share is quite good, so you shouldn't have any problems building a reasonable house and also obtaining a decent interest rate. Depending on the preferred house size, a building plot in another location might also fit into your budget. As you have correctly noticed, many of the very small districts are threatened with extinction. Since your property would also have to be divided, etc., the house might be difficult or even impossible to sell in 10, 20, or 30 years. If that is not an option anyway, o.k., but if it is, I would keep that in mind.

I think the property could definitely be divided! My parents used to have a farm! We would tear down a barn or the stable (we’re not quite sure yet which location would be better) and then build on that spot!

I could imagine 1200€ now, but not more! Since I’m naturally rather skeptical and prefer to play it safe, I like having something in reserve and might make a special repayment!

And in another town with a building plot is really unrealistic for me! At 220€ per m2, that adds up...

Have you ever spoken with a bank?

You say the plot is divisible? Simply because of the size or also legally?

Or have you already tested the building regulations? Because barn != residential building?