House construction for €400,000 possible with a net income of €4,100?

Hello dear forum,

I am male, 25, industrial electronics technician, net salary 2300€/m
my wife 25, employee in public service, 1800€/m

Children planned in the next 5 years but not immediately

Monthly expenses:
Cold rent 655€
Building savings contract 35€
Building savings contract 150€
Building savings contract 200€
Preferred shares 85€
Possible savings amount = 1125€

Living expenses/insurances/cars/miscellaneous etc. 1500€
+ assumed maintenance costs gas/electricity/insurance for the house 400€
Ongoing monthly costs = 1900€

Equity 100,000€ in the form of savings passbook, daily allowance and savings fund
+ additionally LBS BSP 75,000 filled currently with 15,000€

Plot in Bavaria 720sqm costs = 45,000€ fully developed with property purchase + notary fees included

Planned is a single-family house 150sqm with basement + finished garage + carport
First offer complete turnkey 350,000€ from the developer
(I do not count own work because this should represent my "buffer" for possible problems, i.e. savings painter/floor)

Ancillary construction costs I calculate at 15%, i.e. an additional sum of 52,500€

That means we would have a total amount of 447,500€ - 100,000€ equity = 347,500€ financing

Now I need your advice, my friend who is a financier gave me an offer with
my existing BSPrer 75,000€ + an annuity loan 275,000€

The loan is set for years with 1.92% effective annual interest rate with a monthly rate of 890€, i.e. after 15 years I still have a residual debt of 180,000€

The BSP will be filled with 230€ for 15 years and also has 1.92% effective annual interest rate
after 15 years, so I thus have a repayment rate of 300€ for the BSP in the year 2032.

Is this offer even realistic? Is it overpriced?

Is it possible with the existing capital + income to manage this project?

Does it make sense to use the BSP this way? Or should this capital be used as equity and thus reduce a complete annuity loan?

Have I forgotten to plan anything?

Thanks in advance

Regards Daniel

Hello, you are good savers. I would look at alternatives. Preferably without [Bausparer]! 20 years have been available for 1.8%.

And never let a friend calculate such sums! Otherwise soon ex-friend

The loan is set for years with an effective annual interest rate of 1.92% with a monthly installment of €890, i.e., after 15 years I still have an outstanding debt of €180,000

The condition is not bad for 15 years and your loan-to-value ratio, but not great either. For 0.1% more you should get 20 years. For 15 years you should end up at 1.7-1.75%. In your situation, I would rather tend towards a longer fixed interest period. I find the surcharge from 15 years to 20 years very appealing at the moment.

Is it possible to manage this project with the available capital + income?

I think so. You have a lot of time to repay and the salary will still increase, albeit not dramatically, and the children are still a bit in the future. Do 20 years fixed and repay as much as possible straight from the start.

Have you calculated the option with children and part-time work? We have similar income, similar rate, 100k less and are 10 years older. It is also comparable except for the fact that the children are already there.

Sure, your salary will probably increase. But one should play through how 2-3 years of parental leave (I know so many who only wanted to do one year and no one who followed through!), childcare costs, part-time work have an impact. Diapers, clothing, furniture, food can approximately be offset against the [Kindergeld] I think (of course it is very individual).

Please only plan 70,000 equity out of the 100,000.
You still need a few thousand for the kitchen, lamps, and miscellaneous... in total about 30,000€. What is not used will be saved for unforeseen expenses.
And then you have to see what is not included in the AI offer "turnkey", e.g. the outdoor facilities as well as additional equipment... with the latter, you often end up in the five-digit range.