Is building a house possible with our income?

Combination of income and equity in my opinion does not allow for new construction, even with a gifted plot of land. There is simply not enough leeway, one should not put themselves through that.

Example: House should have cost €80,000, but renovation costs amounted to over €100,000.

That is your viable path. Even if a lot still needs to be done in the €80,000 house, a lot can be done gradually during renovation/remodeling, and many things that are expensive in new construction are already present in some form (keyword outdoor area). Find something used in a nice location for you and make a project out of it. Some things (water/sewage connection, electricity, plumbing) are done before moving in and can be added value-enhancing into the financing, other things (insulation, outdoor area, windows) can be done gradually and do not have to be included right away.

It might really be a bit tight, but the desire for a garden and more space is totally understandable. What speaks against a semi-detached house or a terraced house? Or really the existing single-family house property where there is still quite a bit to do.

That would put you at 200k€, 200k€ for a new house is barely possible.

Right. But it also has to fit.

There is still a noticeable difference compared to a new build. You can only tend towards a new build if it is financially really feasible... for you that would be extremely tight.

Yes, that’s true. Unfortunately, it wasn’t really possible before, but sadly there probably won’t be anything left..

In my opinion, a combination of income and equity does not allow for a new build, even with a gifted plot. There is simply too little room, you shouldn’t put yourself through that.

This is your viable path.
Even though a lot needs to be done in the 80,000€ house, a lot can be done gradually during renovation/refurbishment, and many things that are expensive in a new build are already present in some form (keyword outdoor area).
Look for something used in a nice location for you and make a project out of it.
Some things (water supply/drainage, electricity, sanitary) are done before moving in and added to the financing value-increasingly, other things (insulation, outdoor area, windows) can be done gradually and don’t have to be included right away.

Ok. Thanks for the info. But I have to achieve at least efficiency for the "old" house, right?

A new build would really be a bit tight, but the wish for a garden and more space is totally understandable. What’s wrong with a semi-detached or terraced house? Or really just a single-family existing property where still a lot needs to be done.

A semi-detached or terraced house doesn’t really appeal to us.. so we’re left with an existing property then.

But it also has to fit us a bit, because I don’t want to become unhappy either...

But thanks for the honest answers, sometimes you get fixated on something and end up with tunnel vision..

Regards

Steven

The Flair 130 is located in the center of Saxony-Anhalt at around €165,000, minus approximately €3,000 for omitting the clinker (if not liked). However, it already gets floor-to-ceiling windows, roller shutters, and underfloor heating in the attic. If you stick to the standard and don’t have big wishes in the upgrade list, this could be an option, right?

The Flair 130 is around the average in Saxony-Anhalt at €165,000, minus about €3,000 for omitting the clinker bricks (if you don’t like them). But it already gets floor-to-ceiling windows, roller shutters, and underfloor heating in the attic. If you stick to the standard and don’t have big wishes in the customization, this could be an option, right?

We wanted to build a bungalow. Since my family has some history with back problems and I think that if it happens to me in 30 years as well, I could only stay downstairs..

But the offer does not sound bad.

Town & Country doesn't sound too bad now.

If you manage to come out at around 200 TE, I would say yes....a Town and Country bungalow of 110 m2 costs about 145 TE, additional costs assumed at 25 TE (which definitely needs to be checked!) and 5 TE for upgrades plus 2 TE for a used kitchen and 5 TE for the bare essentials(!) outside, so only the material for the access path and the terrace as EL, plus a small hedge. 20 TE for the plot. No garage, just gravel for now.

In addition, you will have to say "No" much more often than "Yes" to the questions from the craftsmen, initially go with laminate flooring, prefer curtains instead of shutters, etc. That's tough because afterward many of these things will be difficult to change. But it will still be a house where you can live much better compared to your 60 m2 now. 110 m2, built according to the current Energy Saving Ordinance, the children can play in the garden and it should be quite trouble-free for the first decades. Who really absolutely needs a granite countertop in the kitchen and external blinds?

You could at least credit yourselves 2x Baukindergeld as equity and if you could generate another 10 TE as equity by the start of construction (keep the 12 TE later in reserve but show them to the bank initially), that would be about 35 TE in equity or "only" an 85% loan-to-value ratio.

(Self-)discipline, modesty and ideas are the most important keywords.

That would roughly be 1000 euros per month as repayment. You should practice that, so save 900 euros (1000 euros mortgage plus 300 for the additional operating costs and provisions) every month. This MUST work. Whether and how that is possible only you can know yourselves. Any later additional savings are very welcome to increase the provisions! When that fits, you can also expand the outdoor facilities, set up a garage or think about a new kitchen.

And get informed about the additional costs; if you approach this too naively, they can unexpectedly break you financially: Ask in the specific construction area what the residents have paid for soil disposal and connections, what the development plan permits and requires. Ask builders whom the executing construction company gives you as a reference what else came on top for them compared to the initial contract draft.