House construction possible yes/no?

Hello everyone, since we are currently very busy with the topic of house building and have already had the first appointments with builders, the question now arises how much house we can afford and whether it even makes sense to build one.

Unfortunately, we have no equity and therefore cannot offer the bank anything. After deducting all ongoing costs and the cold rent still to be paid, we would have about €600 per month left for the repayment of a loan.

What do you think, does it make sense to make appointments with different banks to see what they offer?

Best regards

So 600 € + cold rent? How much is that?

If only the 600 € for financing are left, forget it, but even so, it will hardly be manageable.

Besides, the maintenance of the house also has to be paid ... .

Hello backbone,
thank you very much for the quick response.
Our current cold rent is already included in the 600€.
So you think that we won't get a loan that we can repay monthly with 600€?
best regards

Backbone meant it differently... You write: Salary - running costs - cold rent = 600 euros. The crucial question is how high your cold rent is! If this were, for example, 1,200 euros now, then maybe a somewhat manageable amount would come out...

But just quickly: There are some simple interest calculators here on the internet. Just take a rate of 500 euros at 2.5% interest and a term of 30 years (which is very optimistic because 2.5% certainly won't hold for 30 years). Then you end up with a possible loan amount of about 125,000 euros. Even in the countryside, you won't find a house with land without equity + ancillary building costs and furnishing, buffer... And unless you are a civil servant for life, you will hardly find a bank that agrees to a 100% financing here.

You only need to use the usual calculators and with 0€ equity and a rate of 600€ you get a total amount of 175k€. You won't get a house for that and you would also be missing the land. You should rather expect double that amount. I also thought you meant 600€ per month plus the rent, but even within that range there is still a lack of reserve somewhere...

Hello, so I have only just started dealing with the topic of "building" and have also calculated about €600 repayment per month. The difference to the thread starter is that I also have approx. €60,000 of equity available. I actually assumed that I could finance a nice small house including land for €250,000, but since I have been reading here I really have my doubts. Here are people who, with a net income of €3,000 - €5,000 per month, are not sure if they can finance a house?! O.o If the house then costs €500,000, I can understand that, but personally, I am already talking about a very upscale class in terms of size and equipment of the home. My goal is to achieve the dream of homeownership with a net income of €2,500. And when I think that in my circle of friends and acquaintances I already belong to the "somewhat better" earners with that, I wonder how the "average earner" or "ordinary worker" can afford a house at all. I personally have the advantage that I work in the public service and thus have secure salary increases coming up over the next 15 years. This would of course also give me the opportunity to gradually increase the installment a little, but I would not include this point in today’s planning for now. Is there absolutely no one else here who is in a similar financial situation and maybe could say something about it? :P