How much can we afford?

Hello everyone,
we are currently planning to have our own home built. We already have a suitable plot of land in sight (80,000€ - 560m[SUP]2[/SUP]).
I am permanently employed and currently earn 2000€/net (still tax class 4, as my wife will go on parental leave from 01.01.14, but then tax class 3). My wife will receive parental allowance of 600 € per month for 2 years. As equity, we currently have 15,000€, could possibly increase that to 20,000€. However, I am currently calculating with 15,000€.
I have also already spoken with some developers and for the above-mentioned plot with a single-family house (without a basement) of about 125m[SUP]2[/SUP], we came to about 280,000€.
What are your opinions, what can we afford? And do you perhaps have any tips for me? I am grateful for any advice/suggestions. ;)
Thank you very much & best regards

According to the rules of thumb, you should afford a 1,400 € installment for a 280,000 € loan. I find that hard to achieve with you. By how much does the net income increase in tax class 3? ~200 €?

But even with 50% of the net income for the installment (I would say about 1,100 € in tax class 3), it won't work.

Together, you would have €2,600 (+ X when changing the tax class) for the first 2 years. After that, €2,000 + X income from the wife.

backbone has already written it. With an annuity (interest + repayment) of 6 %, the monthly burden is €1,400. Term approx. 25 - 28 years.
If you choose a lower annuity, your repayment amount decreases and the term increases (significantly). That means, for example, with a repayment of 1 %, you have to reckon with well over 40 years.

Next, there are the monthly ancillary costs for the house - approx. €2.50/sqm = €312.
You would have a monthly burden of approx. €1,700 just because of the house.

€2,600 - €1,700 = €1,300 for all other expenses.

In addition, you should also build reserves (for future repairs) as well as save for other expenses (new car within 25 years).

Next, ask yourselves the following questions:
1. How high is your current cold rent?
2. How much can you currently save?
From this, the sum of your current maximum affordability arises – but based on the income including the wife.

Your wife is going on parental leave next year. Accordingly, as you described, the monthly income will decrease and with it the "potential savings rate."
Furthermore, you currently have no overview of how much a child will cost you.
For example, we can only plan with my income because my wife's fixed-term employment contract was not extended during pregnancy (industry: retail). Parental allowance or her future income is almost completely eaten up by childcare costs (KG as well as possibly later care until one of us returns to work).

3. Can your wife (securely) return to her job after parental leave (or does a fixed-term contract possibly expire during that time)?

Personally, I consider it risky. These are just some points to think about.
But you have to decide for yourselves and think it over calmly (not with feverish “house desire eyes”). That means: Decide with your head and not your gut.

At the moment, we save about €1,300 every month and my cold rent is €400. According to my calculations, my salary with tax class 3 will increase to just under €2,400.

I also expect a higher income, as we would like to have a second child. ;)

My concerns were also the same as you have just described here. Unfortunately, due to the current price situation, we have not found any finished houses that appeal to us.

I have also already spoken with some developers and for the aforementioned plot with a single-family house (without basement) of about 125m[SUP]2[/SUP], we ended up at around €280,000.

... and then it takes tremendous discipline not to want more in the features than what is listed. Unfortunately, it didn't work out for us... we are - disciplined - €10,000 poorer because we didn't save on sockets and want nice tiles that last longer ;). Then there is the kitchen. What I want to say is: it probably won't stop at €280,000...

... and then it takes an enormous amount of discipline not to want more in the equipment than specified. Unfortunately, it didn’t work out for us... we are – disciplined – 10,000 poorer because we didn’t skimp on power outlets and want fancy tiles to last longer ;). Then there’s the kitchen. What I want to say: it probably won’t stay at 280,000...

yes, you’re right... I’m expecting that too ;)