Is building a house possible despite family circumstances?

Hello forum members,

My grandmother and my mother currently live in a house that has been our property (or currently my mother’s) for many years. However, the house is now on the verge of collapse and my grandmother and mother are unable to manage it. Additionally, both need a bit more distance from each other, so all in all, without going into detail, you can believe me that the current situation is no longer bearable, but neither wants to leave the house.

My proposed solution is as follows. The house (or land) would be transferred to me. The house will be demolished because modernizing it would be pointless due to its construction type. Then a new house will be built where my partner, my grandmother, and I would occupy most of the house, and my mother would get a separate apartment where she would have a right to live until the end of her life. The house should be around 150 sqm (100 for our part and 50 for my mother). I do not need a basement and I do not want any luxury. I just want a house that doesn’t fall apart after 10 years. I have already consulted an architect. He is currently working on the first draft and cost calculation. I am roughly estimating total costs around €200,000. Now my question is whether this is even feasible given our current situation and what would be possible in terms of financing.

I do not have any equity. Maybe I could get €10,000 from my grandma. However, I would then basically own the land and the piece of junk on it. Is that something that counts?

Personal contribution would only be possible in the form of flooring, wallpapering, and painting, because the project needs to move quickly and I am not exactly a DIY expert.

I would distance the financing from my partner until we are married, and she would have to contribute well to living expenses.

Now the net salaries:

Grandmother: €500 pension
Me: €1,700 net
Partner: €1,200 net
Mother: €1,000 net

I would be interested to know if it would be crazy to push through this building project based on these incomes (especially since I would cover 80-90% myself) and whether my estimated €200,000 is even a price that includes all costs. Whether a bank could finance me and how long and how much I would have to pay on this amount. I think I could afford about €1,000 a month repayment myself. That would still leave me €700 in case I ever lose my partner. It’s not much, but I think it’s enough to survive.

My work situation is good, secure, and my salary is generally increasing (five years ago I had €1,100 net).

I would appreciate a constructive discussion, and comments like “That would be crazy” with a reasonable explanation would be great. Thank you in advance for your contributions.

I already consider it "crazy" to want to finance a house demolition and new construction with no equity at all. Likewise, I consider it unlikely that you can have a house with 150 sqm of living space built for 200,000 euros. The demolition costs alone + incidental construction costs are likely to amount to between 30,000 and 50,000 euros.

Regards

I think it is already "crazy" to want to finance a house demolition and rebuild with no equity at all.
Similarly, I consider it unlikely that one can have a house with 150 sqm of living space built for 200,000 euros. The demolition costs + incidental construction costs alone are likely to amount to between 30,000 and 50,000 euros.

Regards

Hello!
I can only agree with that.
You should get good advice before you pick up the wrecking ball. I experienced a similar situation and informed myself on the internet.
Good luck