House Construction - What is financially feasible?

Well, I’ve already deducted the money for furniture, kitchen & outdoor area from the equity. Garage is still to be added, that's right. Can maybe someone say something about the equity? As mentioned, about 30,000 euros were paid into both building savings contracts, land is available, and 20,000 cash. Originally, I assumed that a house wouldn’t be a problem... but now I'm not so sure anymore. I don’t want to pay rent forever, but the little house shouldn’t bring financial ruin either. You get scared sometimes when you read some of the amounts here... I don’t want to save on everything and build a pure “stinginess is cool” house, but at 250,000 euros, the fun ends already :-) I just have a bad feeling that the bank will say “Sorry, too little equity contribution.” I have to admit now that I haven’t been the most frugal in the last 10 years; that mostly has to do with my work situation back then, etc.

You should be more afraid that the bank agrees, even though it's going to be a tight squeeze.

Even if you build cheaply, possibly do a lot yourself, you will probably have to finance €250,000. The same amount we had to borrow. But €2,500 won't cut it... even with 1% financing/repayment you have to pay a €1,000 installment. Then paying off quickly won't work.

What you need to be clear about: What does your family planning look like... because here one whole salary suddenly disappears.

What you have to be clear about: What does your family planning look like... here one whole salary basically disappears.

Rate=1000; Additional house costs=300; Insurance / Car =300; Living including child = 500; =>400 euros remain. Not much, but it should still be doable??

even with a 1% financing/repayment you have to pay a 1000€ installment

=>How many years do you pay that off?

With a 1% repayment, it is better to remain debt-free and rent.

500€ including child? Diapers, wipes, food, clothing, etc... probably not included.
There are always new purchases for children that cost money! Strollers, car seats, bicycles, toys, ...
You probably do not need new clothing then? No gasoline? The car must not break down! Not even the washing machine...

Guys, I haven't built yet, ok. But what world are you living in? We're talking about 2500 euros here. Nobody seriously wants to tell me that you can't build a house for that money. How did it work in the last 30 years then? With much higher interest rates? Who already had 5000 marks in their pocket back then? No one. And people kept building and building. =>So, let's be honest, if I can't build with my income & a plot of land that I own, how is it supposed to work for a baker, a bricklayer, etc.? And they build too.

Have you ever kept a household budget over a longer period of time? The 500 € just doesn’t add up at all (especially not with a child).

By the way, banks usually calculate with flat rates. For example, for us, 700 € were set for me and 300 € for each additional family member.

People, I haven’t built yet, okay. But what world do you live in? We are talking about 2500 euros here. Nobody is seriously telling me now that you can’t build a house for that money. How did that work in the last 30 years then? With much higher interest rates? Who had 5000 marks in their pocket back then? Nobody. And they kept building and building.
=> So be honest, if I can’t build with my income & a plot of land that I own, how is that supposed to work for a baker, a mason, etc.? And they build too.

Do you know how long they pay it off and whether they don’t have to hand over the place to the bank in 10 years? 1% repayment with a 10-year fixed interest period can also be managed with a small income.

This is not meant to sound arrogant, but 2,500 € compared to a 1,000 € installment really isn’t the world. We have just under 4,500 € available every month and a rate of 1,200 € and still calculated back and forth many times and went through various scenarios before we signed the loan agreement.