Is building a house possible with our income?

Good morning everyone,

we currently rent in a village in Saxony-Anhalt. We also want to build a house in this village..

Data:
- I am 33 years old, my wife 31 years old
- 2 children (3 1/2 years and 6 weeks)
Income:
- I ~2000€/net
- my wife ~1200€/net

Expenses:
~2000€ (300€ car installment, 400€ rent, 160€ kindergarten, phone, food, etc.)
Equity: currently ~12K

The car will still be financed for 4 years..
Now we have received an offer for building a house, which is about 130m² ~210K €, plus garage ~18K € + land ~20K €..

But that does not include outdoor facilities + kitchen..

Would it be worth it for us? Or rather

Hello,

you need 110% financing.
The little equity is more than eaten up by the car loan. But you should keep at least 12k € as a strict reserve (and even increase it!).

You will not get the house built for that price. That is 1615€ per sqm. Here in the forum, the current assumption is 2000 € per sqm construction costs.

Therefore the question: Is really everything included in the house price? Earthworks, house connections, floors, painter, etc.?

Where will it be built? A plot of land for 20k € is EXTREMELY cheap.
Are self-services planned? With job + 2 small children probably little to none?

I would not do it. In my opinion, at least 50k € are missing for the house, then at least another 30k € as a buffer.
At least 15k € should be available for outdoor facilities.
Kitchen 5 to 15k €
Other furniture?

Also things like lighting, curtains, small items (mailbox, house number, etc.), tools, garden equipment (e.g. lawn mower) really cost a lot of money.

What about all the additional purchase and construction costs? Which of these are included in the figures you mentioned? Is the [Kindergeld] already included anywhere? Are the [Kita] fees for one child or for both?

you need 110% financing. The little equity is more than eaten up by the car loan. However, you should keep at least 12k € as a strict reserve (and even increase it!).

We are increasing it, but saving up properly wasn’t possible before...

You will not get the house built for that price. That is 1615€ per sqm. Here in the forum, the current assumption is 2000 € per sqm construction costs.

So the question: Is really everything included in the house price? Earthworks, house connections, floors, painting, etc.?

The house is supposed to be turnkey.. Of course not everything will be included in the house price. We are in the process of obtaining further offers.

Where is the house going to be built? Plot with 20k € is EXTREMELY cheap. Planned own contributions? With a job + 2 small children presumably rather little to none?

Saxony-Anhalt. Own contributions are of course planned! The plot is sold privately and is about 1200 sqm. That’s why the consideration is

I wouldn’t do it. In my opinion, at least 50k € are missing for the house, then another at least 30k € as a buffer. For outdoor facilities, at least 15k € should be available.

Okay.

Kitchen 5 to 15k €

Planned are 10 -12k €

Other furniture?

Exactly, some more will be added as well.

Also things like lighting, curtains, small things (mailbox, house number, etc.), tools, garden equipment (e.g. lawn mower) really cost a lot.

Right, some is already available from the family (especially tools).

How about all the additional purchase and construction costs? Which of those are included in the figures you mentioned? Is the child benefit already included somewhere? Are the daycare fees for one child or for both?

Child benefit is not included, daycare fees are for 1 child, the 2nd child is free as long as the 1st one still attends kindergarten and after-school care (in our case, kindergarten and primary school are in one building). The child construction grant is also not included. Purchase and additional construction costs are also not included in the figures yet? How can one calculate a flat rate + safety factor for that?

You will not get the house built for that price. That is €1615 per m². Here in the forum, the current assumption is €2000 per m² construction costs.

In Saxony-Anhalt it should definitely be possible below 2000/m²... unless all additional costs are already included. We are currently building in Hesse and just for the house plus upgrades and additional foundation costs, we are somewhere between 1600 and 1700 per m².