Is building a house financially feasible?

Hello,

we (both almost 30 with a 2-year-old child) would like to build a house. Could you please take a look and see if this is feasible? If any further information is needed that doesn’t come to mind right now, just ask.

- Income €3,700.00 (€2,000.00 + €1,700.00)
- Fixed costs €1,200.00 (including various insurances, home savings contract, daycare fees, phone, internet...)
- Food + fuel approx. €600.00 monthly
- 2nd child planned in the near future (1 year parental leave)
- House including land planned for €250,000.00 (maximum €280,000.00)
- Equity €30,000.00

Is this doable or are we possibly overextending ourselves?

Thank you very much
Yours, Juli

This should basically not lead to a rejection by the bank if there are no skeletons in the closet.

Whether you trust yourselves with this is something only you can know.

The maximum affordable installment should be based on the "worst case income". That means 1 salary + parental allowance.

The installment will settle somewhere between 800-1200, of course more is always possible. You should assume a minimum repayment rate of 2%, 3 or 4% will naturally shorten the term drastically.

Hello,

are these amounts (280k incl. property) representable in your spreadsheet?

Otherwise, as toxi said, it should go through. Make sure to offer KfW (if cheaper) & choose a long fixed interest period with special repayment options.

Thank you.

280,000 € including the land is feasible here (130 sqm house on 500 sqm land).

We were thinking of an installment of 900.00 €, since ancillary costs also have to be paid.

In our area, there are many plots with leasehold. What do you think about that?

Best regards, Juli

What do the plots cost per sqm approximately?

Between €100 and €140 per sqm. For the plots with leasehold, €2 to €2.50 per sqm per year.