Is building a house reasonable?

Hello,

we (2 adults and one child) have a net income of 3500€ together. Currently, we rent for 750€ including utilities. We are considering building a house, but we do not know if we can afford it with our income.

What are your experiences? Thank you very much in advance.

Building a house is not the same as building a house, there are worlds of difference in the prices and the land prices and the size of the property are also important

Hello Häuslebauer99,

that also depends on what your other payment obligations look like - so whether you have installment loans to service or underpayments to make.

Basically, with a monthly rate of 600 EUR (assumed cold rent) you can currently finance about 120,000 EUR. Additionally, any existing equity may be added.

The bank estimates living expenses at about 950 EUR + 2 EUR/sqm of living space for ancillary costs (so 200 EUR for 100 sqm).

With a net income of 3,500 EUR, I consider your project feasible from an income perspective.

Now it also depends on the total costs of your project, how high the monthly rate will ultimately be.

Best regards

M. Thiemann