Is a construction project possible despite the probation period?

Good day,

my wife (25), a child (1M), and I (27) currently live abroad and have saved up equity of 45k € in 2 years. Next year in March we will move back to Germany and want to build a house.

The house (160 sqm) + plot (600 sqm) would cost us 380k € (including incidental costs, kitchen, flooring, and garage). The general contractor is a family member and I trust their calculation.

I already have a job in Germany and will earn 3.4k € net (bonus not included). Since we are returning from an EU country, my wife is entitled to parental allowance for 1.5 years and will receive 700 €. With 200 € child benefit, we would have a total of 4.3k €.

After 1.5 years my wife will start looking for a job and hopefully earn about 1000 € net part-time.

During the construction phase we will either rent a small apartment for 600 € warm per month or live rent-free with relatives.

Apart from 160 € BAföG monthly, we have no outstanding loans.

Now to the question:

Do you think it is realistic to finance 380k with a family income of 4.3k and 45k equity or is my plan detached from reality?
Does it matter for the financing that I am still in the probation period?

Best regards
Max

Presumably, your wife's income will not be taken into account, parental allowance is not sustainable, and the work afterwards is completely fictitious. What counts is the here and now, and that is (in March then) your €3,400 net. It is absolutely borderline to want to finance a loan of about €340,000 with this. Maybe you'll even find a bank that does it... but comfortable is something else!

Do you think it is realistic to finance 380k with a family income of 4.3k and 45k equity or is my plan detached from reality?

First of all, the bank will reduce your income by the amount of parental allowance, as this is not regular income. With three people and 2.9k income, living expenses of 1,100-1,300 € are already subtracted. Then there are the 160€ BAföG payments. The rest must be enough for the installment of approx. 1,100€ (considering low repayment - but that is okay given your age). I find it really tight for the bank. There will be some who say no, also because of the probationary period. However, you can get it financed. 1,100 € "cold rent" is not particularly high, so I would do it in your situation (what else do you get as a bonus?).

First of all, the bank will reduce your income by the amount of the parental allowance, as this is not considered regular income.

Thank you for the feedback. I was not aware of that. The bonus would be €300-600 net monthly, but that doesn’t really make a big difference. Then I will probably have to deal more intensively with the housing market in the region.

At 27, you have enough time to pay it off. And if you can get a house that cheaply, I would go for it!

But he has 3400 net without bonus, not 2900. He wants 340k, not 500k...he has the [GU] in the family...he has a bonus in reserve + child benefit. Of course, the bank only counts the 3.4k, but in everyday life it's actually 4.3k. The savings performance so far suggests a responsible character. Knowing that the income will not decrease but will actually increase in the foreseeable future makes it work. You can't splurge, but it works.