House construction, how much can we finance?

Hello forum,

just freshly registered because I would like to fulfill the dream of owning a home.

My girlfriend would like to move in as a tenant, but that is rather not an option for me.

We currently have neither land nor a possible house in sight. I would prefer to build myself.

General information about us:
Our age? 28 and 27
Are there children? No
Our professions? Electronics technician and nurse

Income and asset situation:
Household income (net)? 4500€ monthly + secondary income between 20,000€-50,000€ annually.
How much equity do you have? 40,000€
How much equity do you want to invest in the house project? As little as possible, as liquidity is very important for the business.

Expenditure situation:
Housing costs: 400€
Other living expenses: 1000€
House loan: 500€ - 300€ rental income

The house loan still runs for 7 years. 80,000€ was borrowed 3 years ago, and I own half of a three-family house.

Not included costs:
Costs for the baby: ?
Car repair: ?
Legal protection: ?
Furniture: ?
Vacation: 3000-5000€

Additionally:
In the future, I want to reduce regular working hours by 20% to further advance the business.

What would be affordable?
It would be important that we can pay it stress-free and do not have to completely restrict ourselves in the future.

Thanks in advance for any guidance.

The most important question beforehand would be how much does a plot of land cost with you? Do you live in Meck-Pomm or Bavaria? Those are already significant differences.

Is [Nebenerwerb] the revenue or the net profit?

Do I understand correctly that your girlfriend does not want to build or buy a house? Then the topic is actually settled.

The most important question beforehand would be how much does a plot of land cost where you are? Do you live in Meck-Pomm or Bavaria? There are already considerable differences. Is secondary income the turnover or the pure profit?

We live in Central Hesse. The big question is still where we want to build. I think it could well cost around €100,000. Secondary income is the profit after taxes.

Half a million is easily achievable for you. Financing significantly more euros is also possible, but for that, you have too little equity and the bank will not consider the secondary occupation as sustainable.

Land €100K
Construction costs €390K
Additional costs €50K
Equity €40K

With that, a nice 150 sqm house should be doable for you. Installment around €1,400–1,500.

Whether the girlfriend cooperates is another matter. Unless you have to build and finance alone. Then, of course, the girlfriend’s income is excluded from the calculation and the above calculation collapses (and also the dream of the house?).

May I ask where in Mittelhessen (roughly) you would want to build? The land prices in Mittelhessen also vary significantly. There is everything from 30-40€/sqm to 1000€/sqm.