Is building a house possible with our savings and financing?

Yes, thank you, I am also very satisfied and that’s what I meant - with us it also looked very tight because we didn’t want to bend (also take vacations, etc.) and it works if you have the right financing option and you only get that through very good advice *Daumenhoch* !

You are right, you shouldn’t plan down to the last cent and should have a monthly reserve! Above all, you should structure the entire term - otherwise in 10 years (at the end of the fixed interest period) you will face market interest rates, monthly installments, etc., which you may no longer be able to pay!?

So - all the best to you!!

Building a house is definitely somehow possible, but you first need to find a bank that will finance you. With low land values, the bank directly applies a high risk discount. In our case, the standard land value is 16 EUR/sqm and the bank has calculated a risk buffer of over 30%. If we, as in your case, had no equity at all, that would be a 130% financing and accordingly a poor interest rate... Regarding the additional construction costs: 1. you are getting the land as a gift, so please make a gift contract at the notary! As a son, you have a tax exemption of 400,000 EUR and as a daughter-in-law 20,000 EUR -> you do not have to pay land transfer tax 2. Earthworks are the X factor. Some think they have a level plot, but there is a slight slope and/or the soil needs to be replaced due to lack of bearing capacity. Earthworks can easily cost 20,000 EUR and then you won’t have much left for the materials for finishing... 3. The house connection costs should not be underestimated: Water/sewage: should cost about 5,000 EUR for us, but this does not yet include the sewer line to the house, only the direct connection to the property Electricity: costs about 1,300-1,500 EUR Telephone: costs 400 EUR for the first 15m In summary, if you want to take out 200,000 EUR and assume an initial interest rate of 3.5% (fixed for 10 years and I think you definitely won’t be offered better), the installment would be 750 EUR. Now you have to realistically assess whether you can/want to afford this.