Is cultivation financially feasible?

Good day,

we would like to start building our own home this year and are seeking honest criticism / suggestions on whether our construction project is feasible.

About us:
We are a family of three.
I, a civil servant, 35 years old, current income ~ 2,600 € net,
my wife, 30 years old, currently on parental leave, afterwards income ~ 700 € net,
our daughter, 11 weeks old.

About the construction project:
We would like to build a approx. 127m² home as an extension on my parents’ property.

The building application has already been approved. The costs amount to 273,000€ (incl. 10% buffer).

Our equity amounts to 30,000€.

We have 3,600€ available per month. Our monthly expenses amount to approx. 900€. This includes insurance, fuel costs, food, telephone / internet, etc., so that we have about 2,000 € per month left. From that, we would like to retain another 1,000€ per month. There are always some costs, after all, and we also want to live!

I have already calculated various financings but am unsure about what is still possible regarding construction subsidies. Kfw is probably ruled out, since it will be a Kfw70 house.
I was advised to possibly take out a home savings contract for follow-up financing?

According to my own calculations, I come to a monthly burden of about 1,000€ with a term of ~ 30 years, and a repayment rate of 2%. We would prefer to pay off faster with a higher percentage, but that would probably exceed our financial scope.

I would be very grateful for tips, suggestions, or even criticism on whether this construction project is financially viable for us as a family.

Thank you.

What is included in the costs of 273,000 euros?

Hi Yudai,

Until now, I was mostly just a reader in this forum, but regarding your situation – I can give the following "recommendation" from my own experience:

Recommendation for families with average income in an averagely expensive area: 1/3 of the family net income (including child benefit, etc.) = total housing costs (including additional costs)

Then you will "probably" not have to restrict your lifestyle and won't get depressed if, for example, a salary is lost because of childcare.
If your wife's income is secure, I wouldn't worry, but plan for daycare costs, etc. (Child = at least €500/month. IMO)

If you live with/next to family, you have certain advantages like childcare nearby, you only need one lawnmower or even one less car.

I would also take a (full repayment) loan with 30 years fixed interest and repayment adjustment to 1% and special repayments. In case of emergency, after one year you can go down to 1% repayment, full repayment loans are always a little cheaper; that's why this structure.

Are you planning with €1800 per m² (pure construction costs)? I would be interested.

Good luck.

What exactly is included in the costs of 273,000 euros?

Preparation & development, construction + incidental construction costs. No furnishings, so no kitchen, furniture.

If you live with/next to the family, you have certain advantages like childcare nearby, you only need one lawnmower or even one car less.

Yes, childcare would be available. The garden is used jointly.

Are you planning with 1800€ per m² (pure completion costs)?

In our cost estimate, we calculate with 1750€ / m².