Is building at a young age possible/sensible?

Hello everyone,

my wife (21) and I (23) dream of our own home. Currently, we rent and do not really feel comfortable, especially after the recent events (see "Are there children?") we long for a home where we at least feel comfortable.

General information about you:

[*
How old are you?
[LIST]
[*]My wife is 21 years old


[*]Are there children?


[*]We have a child, but we had to let him go half an hour after birth last December (very rare disease (probability < 0.01% - Cornelia de Lange syndrome)).
Since the question probably refers to costs, I’ll say yes as we still wish for (another) child.


[*]What do you do for a living?


[*]My wife is an MFA (medical assistant)
[*]I am an IT specialist


[*]Are you employed, self-employed, retired, housewife, househusband, etc.?


[*]Both employed


[*]How many hours do you work?


[*]Both full-time (unless our desire to have children is fulfilled)

Income and asset situation:

[*
What income do you have (gross/net)?
[LIST]
[*]Together we currently have ~3000€ gross


[*]How much equity do you have?


[*]Since we have not been out of training for long, not much yet (15,000€).

Since my wife works as an MFA and unfortunately does not earn much there and we are young, I wonder whether we even have any possibility to finance the whole thing. What are your experiences?

Rough explanation of what we want:

[*]House with clinker brick design (preferably fully bricked - not just the appearance)
[*]Basement
[*]~140 sqm living space
[*]Double garage

Since we live in a rural area and want to stay there, we have the advantage that the plots are cheaper (860 sqm, 22,000€, fully developed).

Hope you can enlighten us a bit.

Regards, Wythe

If there is an edit function, I apologize in advance, I did not find one.

What I forgot regarding income is ~8000€ annually (profit distributions).

Hello,

first of all, my condolences on your heavy blow of fate!

Regarding your question:

Phew, you are still very young, and besides the financial questions, there are many others...

Is it even clear that you will stay there? As cheap as the plots are (the development costs cost more here ), the question arises whether you want to live there forever.

Income? €3000 gross or net?

Even with €3000 net without equity... let's do a quick calculation:

With the plot, your wishes (140sqm + basement + double garage) and all incidental costs and equipment etc. cost upwards of €500,000. And that would already be very little.

Fully financed because the €15k as a reserve is already too little.

At €500,000, depending on the terms, the rate will be upwards of €1700.

I think that is still (!) a bit too big for you.

Hello you two,

It is understandable that after such a stroke of fate you would like to change your surroundings. Is the discomfort due to the current apartment or the fact of being a tenant itself?

Unfortunately, the presented numbers (still) speak against your plans, as there is currently too little equity available. At the current price level, it simply takes time to save up. The mentioned special payments of around 8,000 euros annually can be helpful, but for the ongoing financing only income that is also documented in writing counts.

Starting early is worthwhile for many financial matters – with house construction this is only very limitedly the case. At 23/21, due to the limited leeway, one would already have to make many compromises that one would probably regret 10-15 years later. We are far, far away from basement, clinker bricks, and double garage with these numbers, and with a timely desire to have children even further away. I would, in your place, if not already done, now set up a building savings contract to at least secure the low interest rates.

All the best for you!

Hello,

first of all, my condolences on your severe misfortune!

Regarding your question:

Phew, you are still very young, so besides the financial questions there are many others...

Is it even clear that you will stay there? Given how cheap the plots are (here the development costs more ), the question arises whether one wants to live there forever.

Income? 3000 € gross or net?

Even with a net 3000€ without equity... let's do a quick calculation:

With the plot, your wishes (140sqm + basement + double garage) and all incidental costs and fittings etc will cost you 500,000 and up. And that would already be very low.

Fully financed because the 15,000 € as reserve is already too little.

At 500,000, depending on the terms, the installment would be about 1700€ or more.

I think that is still (!) a bit too much for you.

My mistake, I naturally meant net, not gross.
My question was also not directly about the current time but in a few years, in about half a year (among other things) I will earn more and get a company car (which will give us a few more euros monthly), then we should come to about 3,400€ (net).

Just take the path of the Etw, you are so young that a house is simply too expensive for your income.