House construction with appropriate financing?

Hello everyone,

My future wife and I want to buy a plot of land this year and start building a house on it next year.
The following details:

Cost of the plot: €98,000 (incl. property tax, notary, etc.)
Estimated house cost: €300,000
My income at 27 years old: €3,200 net tax class 1 so far + expenses which I do not include!
"Wife's" income at 30 years old: €2,200 net tax class 1 so far.
Equity: approx. €90,000
Home savings contract Wohnriester equity: €40,000 but not yet eligible for allocation

My idea is as follows:

I would like to buy the plot with a donation from the parents (€8,000) without a loan (advantages: better bank selection since no land register entry??)
For the house construction, I would now have to take out an annuity loan of €250,000 + €50,000 KfW 70.
I would then cancel my home savings contract afterwards, if possible without repaying the "tax benefits" (this should be possible as soon as an invoice from the construction company is available). I would then consider this €40,000 as additional costs + reserve buffer or also as a special payment.
The monthly burden should not exceed €1,200 - €1,300 since we are also planning for children + celebrating the wedding.
Rent currently: €550 warm

Do you think the plan is feasible?

The land register entry of the bank would then occur if the property is to be recognized as equity by the bank.

You or you?

As joint financing no problem. But the installment could be a bit higher so that you repay properly.

@ Emer: What does the land register entry have to do with recognition as equity?

Hello

It is already sensible for the bank selection, if possible, to buy the property with equity. Otherwise, a (partial) land charge would be registered, and you would be bound to this bank (financing with a second bank in a subordinated position usually does not make sense).

The disadvantage is that you cannot withhold any equity to cover contingencies (e.g., trades managed in-house; "muscle mortgage" since the material).

I think it is absolutely doable for you. But keep in mind, if you plan to have children, your wife's salary will drop significantly. My wife is now working 50% after starting her job and only earns 1000€ net, of which about 450€ goes to the daycare. So we end up with about 500€ more net. For the second child, it will be even less :(
But otherwise, your situation looks solid... just one tip: put aside another 10,000€.... From painful experience, I know that you might really need it. Our net income was similar to yours, and the equity much higher... Financing amount: 250,000€ and we did NOT get an additional financing of 20,000€.
The only reason for this was the location where we built. The house was immediately appraised by the bank at 80,000€ - 100,000€ below value on their side.

No one understood it, but we were glad to have that money in reserve.