Is building financing as an individual realistic?

Hello dear forum!

I have been offered a property and just wanted to ask here in this forum about the basic feasibility, since I am (happily) single and this house is interesting for me. I look forward to your answers and also to criticism or comments if it should not be feasible. I hardly have any information about the property yet. I know this house because distant acquaintances live in it, but unfortunately I cannot give you detailed parameters, please excuse me for that. What I know about it I will gladly share with you.

Now to the data:

General information about you:

[*]Who are you? Female
[*]How old are you? 27 years old
[*]Are there children? No
[*]Are children planned? No
[*]What do you do professionally? Employee in the public sector
[*]How many hours do you work? 39 hours full-time

Income and asset situation:

[*]What income do you have (gross/net)? 2000€ net + vacation pay and 13th salary
[*]How much equity do you have? 10,000€ (not in the public sector for that long)
[*]How much equity do you want to invest in the house project?

Housing costs:

[*]current basic rent 370€
[*]current total rent 500€
[*]electricity 30€
[*]phone, internet, mobile 40€

Mobility costs:

[*]car monthly total: 200€

Savings contributions:

[*]monthly savings rate: 300€ - 500€

Income and expense totals:

[*]total income 2000€
[*]total expenses 770€ (excluding savings rate)
[*]balance 1230€

It should also be mentioned that I will inherit my parents’ house, which is paid off. My father told me that I can use the house as collateral / substitute for equity if I want to. We have already consulted about the risks, for my father and me this would be okay. Unfortunately, I cannot include him as a co-applicant because he is a retiree with a modest pension. The house is valued at approximately 350,000€ and paid off. The land charges are still registered and have not been removed.

Now my question is whether a financing of a property worth 260,000€ would be possible at all with this constellation, if this is not the case I am happy to accept that. I don’t want to build a dream castle for myself if it is unrealistic or not feasible at all, then I have to accept that.

Thank you very much for reading!

Best regards

Unfortunately, that is not enough. As a rule of thumb, you can assume 100 times the net income. So 260,000 does not fit for you. Please also note that there will be additional costs for the house purchase (notary, property transfer tax, real estate agent?). On top of that, necessary renovations, furniture, lamps, etc. will be added. With a 2k salary, unfortunately very little is possible given the current property prices.

to move in yourself or to rent out further?

hm you write very little about the house (age, size) yourself. But if it is so cheap, I assume there is a need for renovation, which will be an additional cost. And if you hardly know any parameters (meaning things that might still be lurking), I find that quite risky for a purchase. Apart from the currently too low net amount. You are still quite young. How does the salary development look?

The 100 times rule is always good, i.e. with €2,000 net income = €200,000 loan amount.

The €260,000 could be represented "by hook or by crook," with the additional security (further mortgage on the parents' house) it would be positive for the bank's approval. Also very good interest rates (which is reflected in the installment).

Questions: in the public sector, what income increases are to be expected in the next 2-4 years? How old is your father? Because if he is somewhat older (may he live very long, of course), one can also argue later that either A) the parental home is sold, or B) it is rented out, thus generating additional income

which in turn can compensate for the shortfall in income/expenses (if the bank employee decides with foresight....)

Do you actually eat anything? It doesn't appear in the household budget. No clothes, no vacation... A lot is missing.

I am also a single person (at least regarding income), I have significantly more income and only slightly more credit taken out for the house. Under the given conditions, the chunk is simply too big.