Is a new building realistic?

Hello,

My wife and I plan to buy a house. We currently have a new build in sight for 295,000 EUR, with all special requests for 320,000 EUR.

Income is as follows:

My salary: 1600 EUR (actually 1700 EUR but the company pension scheme is deducted directly from the gross amount).
Her salary: 2000 EUR
Child benefit: 200 EUR

Equity is between 40,000 - 45,000 EUR (excluding 10,000-15,000 EUR which we have set aside for painting work, flooring, kitchen, furniture, etc.).

Due to my shift work, I actually always earn more than the 1600 EUR, but the bank is not interested in that and we also like to calculate with a reserve at first. In addition, she and I receive Christmas bonuses and I also get a bonus payment.

The monthly installment will be about 1100-1200 EUR (depending on the current interest rate (2% repayment, 15-year fixed interest rate).

Do you think a property of this size is financially feasible or are we biting off more than we can chew?

If you already have a plot of land, it might work. However, if the plot costs another 100k now, I find it very tight!

Would be 280k € loan with 3800 net.
2600 € then remain for living - for example, we have calculated 2500 € living costs per month - including everything that comes up.
You should make a detailed household budget for yourselves and see what the end result is.

P.s.: with 15k € for kitchen, floor coverings, and painting, you will have a hard time.

Is the property included at that price?
Are all additional costs calculated in?
Is a buffer for unforeseen expenses (foundation additional costs, etc.) included?

It would be a 280k€ loan with 3800 net income.
2600 € then remain for living expenses -...

With additional costs, about 2200-2300 € remain for living expenses. Is that enough for you in the long run?

A household budget book would be the first and most important step for you.

And then there are the "What if...?" questions:
1. What about family planning? Is it completed, or might one (or more) still come?
2. What happens if one of you is sick for a longer period?
3. How secure are the jobs? What happens if one of you is unemployed for a while?

In the end, you have to calculate this for yourselves and see how much actually remains at the end of the month. A certain buffer (how much that is must be decided individually) should also always be left monthly.
In principle (if you don’t live extravagantly), it could work out in terms of the numbers; personally, it would be too tight for me.

It is a fixed price from a large developer in NRW. Everything is included except for painting and flooring work.

@BeHaElja

We have a household budget. 15,000 EUR may not sound like much, but it always depends on the expectations. Currently, we have a huge kitchen from Nobilia (which is not a run-of-the-mill brand) including electrical appliances for 3,000 EUR (including delivery, installation, and connection of all appliances). Of course, there are no AEG, Siemens, or Miele appliances in there, and we don’t have fancy stuff like a carousel or a pharmacist cabinet, but if you just want to prepare food and are not a passionate hobby chef, that’s more than enough. We have targeted laminate at about 30 EUR per sqm, so that’s also not the 5.99 EUR hardware store laminate. That adds up to about 3,000 EUR. If we take a kitchen twice as expensive, we’re at 6,000 EUR for the kitchen. We have a painter in the family who does it for a small compensation. So only pure material costs arise here. He said that with 2,500 EUR we are well covered for 125 sqm. That makes 11,500 EUR.



Yes, it is included. As mentioned above, it is a fixed price for a semi-detached house from a developer.

We have a household budget.

After deducting all expenses (insurance, food, hobbies, car, loans, kindergarten place, mobile phone, internet, etc.) we arrive at the following amounts:

My salary: 1,600 EUR - 714 EUR = 886 EUR
Her salary: 2,000 EUR - 445 EUR = 1,655 EUR

Total: 2,541 EUR

2,541 EUR - 1,200 EUR bank installment - 300 EUR additional house costs = 1,041 EUR reserve

Family planning completed.

I don’t understand this question (what if one can no longer work, or how do you manage that with one income?). If you only count with one income, then you can forget about it (not just in our case, but in 95% of all home builders), or you have a very old rundown house even though you earn 4,000 EUR net per month just because the partner could become unemployed someday.

Whether unemployment or parental leave, neither means a 100% loss of income.

Both jobs are permanent, and we have been employed by the companies for several years.

Well, if everything is great, you don't need to ask...