Household income relative to the financing amount

Hello everyone,

I am new here in the forum and wanted to get your assessment of our construction project. Total costs approx. 550,000 euros

The plan includes a 359 sqm plot of land for 217,000 euros and a semi-detached house 122 sqm (timber frame) for 240,000 euros (medium standard including kitchen). Furthermore, we plan about 40,000 euros for outdoor facilities. The remaining approx. 50,000 euros for purchase and ancillary construction costs. Equity amounts to 80,000 euros, the loan amount is 470,000 euros.

The whole thing is financed with a 20-year fixed interest rate, monthly installment 1,650 euros, remaining debt approx. 230,000 euros.

About us and our income:

We are married and have no children yet

He: 37 years old net 4,000 euros (tax class 3)
She: 31 years old net 1,800 euros (tax class 5)

Fixed costs currently (including rent) approx. 1,700 euros

Planned are, as with some here in the forum, possible special repayments of 10,000 euros p.a.

Many thanks for your feedback

Why not?
Life circumstances would still be relevant... Children planned?

If you take the numbers as they were stated, I consider that quite feasible. However:

- "not yet" any children? Given the salary distribution, the effects are not that dramatic, but it should be taken into account
- the remaining debt is high, I also think too high
- I am very concerned that the 240k for the house will not be enough. However, information is missing for this.

In summary: The goal should be to slightly increase the installment in order to reduce the remaining debt. Likewise, with 30k more equity, a better interest rate would be possible, which would also reduce the remaining debt.

Thanks in advance for your answers, we have planned for 2 children and if the amount of the [Sondertilgungen] works out, we would be done in 20 years.

Realistically, 10,000 euros p.a. is quite a lot but 5,000 euros would also be okay.

The house for 240,000 euros is a prefabricated house at the painting-prepared stage without a basement. By the way, we are still considering this.

Increasing the equity is difficult because the plot is available now and in our area there probably won't be anything at this price again anytime soon.

If 2 children then the question of consumption habits: is the stroller from classified ads enough, or does it have to be emmaljunge3D with smart home connection? Used clothes? How are your daycare fees? Do you still want to take flights and shop in Bali? 2 new Audi A6 on lease or a used 307 from a retiree and a bus ticket?

Depending on the answers, everything is still fine with the income.

We are quite frugal and have saved about 2,000 euros per month in recent years. We are also done with long-distance trips for now, but I would still like to buy some new clothes.