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

I would first hold an offer in hand including the construction service description and then you can talk about concrete numbers. Besides, they are talking about building in 2 years and prices of today. Find the mistake

especially 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) equals -€9,000.

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

So to speak, it’s a "tight pair of pants". But thanks for the confirmations. Seems I’m not alone with my negative opinion

And that's where our experiences diverge. Because the budget is exceeded in most cases. Just if the soil survey goes badly, you already have €10,000+ on your hands. Easily. You always have to have reserves when building. Also to possibly increase the loan amount.

I'm talking about a realistic view. It can go well, but the probability that it will go wrong should not be underestimated. And I'm not talking about unemployment, etc. That would be the correct assessment. Not: "Go ahead, it will work out".

Interesting how you don't answer my question but still contradict me. Planning a buffer into your budget (which, by the way, the OP has already written) doesn't make the budget any less of a budget.

No one here wrote "it will work out". Absolutely no one. Not me and no one else either. The risk that it goes wrong always exists, by the way. Regardless of whether it's €3,000, €4,500 or €7,000 net.

Interesting how you don't answer my question, but still contradict me. Planning a buffer into the budget (by the way, the OP already wrote that) doesn't make the budget any less of a budget. No one here wrote "it will work out." Absolutely no one. Not me and no one else either. The risk that it will fail always exists, by the way. Whether it's 3,000, 4,500, or 7,000 net.

No, if you have 7,000 net with a 400k loan, it will probably be more relaxed. You tend to value things too much with flat rates and expected values around you. That makes it unbelievable.

Interesting how you don’t answer my question but still contradict me. Planning a buffer into one’s budget (by the way the OP already wrote that) doesn’t make the budget any less of a budget.

No one here wrote "it will work out." Absolutely no one. Not me and no one else either. By the way, the risk that it goes wrong always exists. Whether it’s 3,000, 4,500 or 7,000 net.

You say I don’t read, but you are no better yourself. I’ll quote myself.

I’m talking about a realistic view. It can go well, but the probability that it will go wrong should not be underestimated. And I’m not talking about unemployment, etc. That would be the correct assessment. Not: "Go ahead, it will work out."

The risk exists even with 100,000 € net income if you are building for 100,000,000 €. What kind of example is that? The question is how high the risk is. With an unknown budget (building in 2 years) and unknown net income (in 2 years; child) I estimate the risk higher rather than lower.

No, if you have 7,000 net with a 400k loan, it will probably be more relaxed. You value too much with flat rates and expected values around you. That makes it unbelievable

You, after not even noticing yesterday that I am not the OP (what was going on there, Bremen fan and partied too much?), I actually find it hard to respond to you at all. You are not receptive to arguments and logical connections anyway. And from a serious "bänger" I actually expect that he at least masters the basic rules of grammar and punctuation, which makes every discussion more bearable. Just by the way. So with 7,000 net you can't become unemployed, right? You can't get sick? The woman can't run away from you? The economy can't collapse? Bold statement, so soon after a pandemic.

The risk also exists with a net income of €100,000 if you are building for €100,000,000. What kind of example is that? The question is how high the risk is. With an unknown budget (building in 2 years) and unknown net income (in 2 years; child), I estimate the risk to be higher rather than lower.

Again: Nobody (!!!) wrote here "just do it". Where does that even come from? Nobody knows how much the project will really cost because there isn’t even a project yet! The OP wanted to know if it would generally be possible for him to repay a €400,000 loan, and you can repeat ten times that the €400,000 wouldn’t be enough, that the OP hasn’t saved enough equity, that it’s all illogical – the fact is that you can quite comfortably repay this amount with €4,500. Even if the loan is set to lower repayments for one or two years, it is theoretically absolutely no problem. Whether the OP can do it, he ultimately has to calculate himself and realistically secure it through a household budget book, but the fundamental statement "€400,000 is too much for €4,500" is simply untrue. And it will remain so.