How is a 400k loan financible without equity? Net equity at €4,500

It is completely okay to have a budget, but building based on a budget is always a very, very poor guide.

Tell me, what do you think 98% of people do when building? Just see what it ends up costing?!

Tell me, how do you think 98% of people build?
Just look at what it costs in the end?!

I would first have a quote in hand including a description of the construction services and then you can talk about concrete numbers. Besides, they are talking about building in 2 years and prices from today. Find the mistake.

Above all, the land will easily cost 10% more in 2 years. The house probably around 6-8%. That means 10% land = €8,000 and (let's take the average) 7% house = €21,000. So with additional savings of €20,000 (8,000 + 21,000 - 20,000) it's -€9,000.

Very many unknowns and quite a tight budget/income. It would be too uncertain for me.

I would first want to have an offer in hand including a construction performance description and then we can talk about concrete numbers. Besides, they are talking about building in 2 years and prices of today. Find the mistake

above all, the land will easily cost 10% more in 2 years. The house probably about 6-8%. That means 10% land = €8,000 and (let's take the middle) 7% house = €21,000. So with additional savings of €20,000 (8,000 + 21,000 - 20,000) = -€9,000.

Very many unknowns and quite a tight budget/income. To me, it would be too uncertain.

That's not what it's about at all, but rather the general statement "building according to budget is not a good advisor." Who wouldn't do that, please?

That's not what it’s about, but rather the general statement "building according to budget is not a good advisor." Who doesn’t do that, please?

But in my eyes, it is. You defend an uncertain project. Will you also bear the costs if it goes wrong?

Very many unknowns and quite a tight budget/income. For me, that’s too uncertain.

Yes, in my eyes. You’re defending an uncertain project. Will you also bear the costs if it goes wrong?

Oh wow, now this is getting silly (sorry, probably too harsh a word again).

The sweeping statements made here rub me the wrong way – 4,500 net is (at least in my eyes) not a tight income, 400,000 is not an unrealistic loan amount, and depending on how you build and how much equity the OP can still save up, that’s not a tight budget either.

The OP has already acknowledged that they want to plan with more buffer and that their previous assumptions are not one hundred percent (but significantly lower) correct – the “Bänger” (that’s not even funny anymore) and friends consistently overlook everything the OP responds with.
Whether 400,000 will be enough can be judged when it gets more concrete – currently, this is just an inquiry about the general feasibility.

And now the question again – who nowadays builds without a budget, please?

Oh wow, now this is getting silly (sorry, probably another too harsh word). The blanket statements made here really get on my nerves - 4,500 net is (at least in my eyes) not a tight income, 400,000 is not an unrealistic loan amount, and depending on how you build and how much equity the OP can still save up, that is not a tight budget either. The OP has already realized that he wants to plan with more buffer and that his previous assumptions are not one hundred percent correct (but significantly lower) – the "heavy hitters" (that's not even funny anymore) and friends consistently overlook everything the OP replies. Whether the 400,000 will be enough can be judged once it becomes more concrete – currently this is just a query about the general feasibility. And now once again the question – who nowadays builds without a budget?

And here our experiences differ. Because in most cases, the budget is exceeded. Just if the soil survey goes badly, you already have €10,000+ to deal with. Easily. You always have to have reserves when building. Also to possibly increase the loan amount. I care about a realistic view. It can go well, but the probability that things go wrong should not be underestimated. And I am not talking about unemployment, etc. That would be the correct assessment. Not: "Go ahead, it will work out."