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

Of course, children start kindergarten at the latest from the age of 3! As you already wrote, we also find it very important! And eventually, the toys at home get boring too!

Bus connections are available, school hours cover it, only in the evening it looks bad! And a top-notch bike path is also available!

As I said, I have absolutely no problem with older people! I just think it would be better and maybe also much easier if children of the same age lived in the neighborhood! But maybe a few will still move to the village, it is very relaxing here after all!

Regarding the €400,000 allowance: did I understand correctly that gifts can be given up to this amount?

One more general question about the additional costs: how much should I expect for a house of about 140m2? (Pellet heating, with Swedish stove (wood from our own forest), electricity, phone/internet, garbage, ...)

The question is only whether your wife should also be entered in the land register?

If they are married, this is usually not a problem, and as a wife, I would personally insist on being listed in the land register, since she is also involved in the financing. It looks a bit different if unmarried. When I read it like this, the building plot seems to be confirmed. The next question would be whether and how the land can be divided and where the house may be built. Those would be my next steps. Financially, it should actually be fine. No idea how big your house is supposed to be, whether a basement is planned, or if it's a large slope location. Demolishing a building also costs money, but I would roughly estimate that you can build a decent house with €360,000 (just to have a ballpark figure). That would be a €270k loan, which at an interest rate of 2.3% (you could probably get better, depending on the fixed interest period) results in a rate of €1,190 (3% repayment, 25 years repayment period). I just saw that you are planning 140m², financing should work out easily. But as I said, first clarify the construction possibilities, then you can make a more reliable estimate of size and costs.

Regarding the €400,000 exemption: did I understand correctly that up to this amount can be gifted?

Yep. However, I don't know whether that's a Bavarian or a federal law. As I said, we had it checked by the tax advisor and notary.

If they are married, that's usually not a problem, and as a woman, I would personally insist on being listed in the land register since she is also part of the financing. It's a bit different if unmarried.

There are other means and ways for that. It also depends on what his parents want/say. For example, with us, the issue was that the land is ours and accordingly only I will be entered in the land register. Everything else we secured through the notary.

So I can fully understand the concerns. I wouldn’t per se exclude a village of 200 souls with an older average age either, but I also see it as critical and you definitely have to be very clear that you want to live there directly. However, I don’t read that from the posts of the thread starter...

A (building) area with many young families around it has huge advantages, also for oneself as parents...

The children have various playmates directly around them and can occupy themselves most of the time (ok, sometimes you have the whole gang of neighborhood children in your own garden as well ). This also applies to various barbecues, gatherings, having a beer... for the children it’s always great to have various other children right there. As parents, you get the nice combination of directly happy children and a bit of "free time"

Also the concerns about maintaining value... if such a small village doesn’t turn things around, it will become emptier and emptier. I don’t know the exact region and it certainly differs from case to case, but if no young families move in, it might die out unfortunately. I certainly have nothing against older people, but with 80% > 50 years old, as a young family with children... of course it’s good for the village if a young family settles there, but whether you want that yourself... that obviously everyone has to decide for themselves.

if such a small village can’t turn things around, it will become emptier and emptier.

But how is such a village supposed to turn things around if not even its own children live/build there? Don’t forget the advantage that the children can walk to grandma and grandpa from a young age. If you move away and the children are supposed to visit grandma in the evening, you have to drive them there again. Especially when it comes to re-entering the workforce later on, something like that is worth its weight in gold.

Grandma/Grandpa nearby definitely has advantages, but whether they live 4 km away in the next village or right next to you... for me personally it doesn’t really matter. You either like having parents as immediate neighbors, or you don’t. However, 4 km distance doesn’t play a role for me when it comes to possible care and/or support from the grandparents. For me, the clear disadvantages of the small village outweigh (and yes, of course this is my personal opinion), and all the nice benefits of an environment with many families and children in the immediate neighborhood are gone (door opens, kids out and bam, 10 more kids to play with... meanwhile a nice coffee with the neighbors whose kids are also now running around outside... or some time to watch a series, or relax comfortably on the terrace, or whatever...). How can such a village turn things around...? Well, that’s something the relevant politicians of the region have to take care of (for example through a new housing development). Why should a single person take this risk (a big risk of loss in value) by moving there as the “only” family? Maybe it will work out and the village will thrive in the next few years, or it will go downhill... then you have a property that you can hardly get rid of, if then only at a significant loss. You live in 15 years in a village where only people over 70 live... in 25 years (when you yourself are still a lively 55) the village is dead... you can practically not get rid of your property...