Is financing a new single-family house feasible?

Hello everyone, I just wanted to kindly ask the experts in the group for their assessment.

Our standpoint: The architect is finished, we have the building application in the exemption procedure, luckily the price for a shell house in timber frame construction has been fixed since December '21, and in the next 2 weeks, we have several appointments at the bank regarding financing. Logically, we have already reached out and gotten advice. However, we would still like to get a few opinions from the group here.

So, let's start:

General about you:

Who are you? Married couple
How old are you? M27 F28
Are there children? Not yet
Are children planned? Yes
What do you do professionally? -
Are you employed, self-employed, retired, housewife, househusband, etc...? M- employed; F- soon on parental leave, then back to work part-time (50-70%)

Income and asset situation:

What income do you have (gross/net)? Together net 4100 plus one-time payments (2300 and 1800 parental allowance, then about 2000 part-time)
How much child benefit do you get? Soon 219
Other transfer payments like parental allowance, sick pay, etc...? -
How much equity do you have? About 40,000 + 26,000 KfW55 funding
How much equity do you want to put into the house project? 56,000

Expense situation:

Housing costs:

current cold rent 500
current warm rent 660
electricity 60
gas -
water, sewage, garbage fees, street cleaning included
telephone, internet, mobile 75

Mobility costs:
car loan (or savings rate for a new car) 200
insurance: see below
taxes 250/year
fuel 300
repairs 60

Insurance costs:

Total: 230/month

Living expenses:

groceries 500
general consumption: 200
personal care/drugstore: 50
clothing: 200

Savings:

Savings rate (vacation and 3 building savings contracts): 350

Income and expense totals:

total income: 4319
total expenses: approx. 2200
balance: 2119

General about the property:

How big is the plot? 660 sqm
What are its dimensions? approx. 20x30m
What is the standard land value? 65/sqm
New build, old building (year built), house type? New build single-family house
Garages? double garage
How big is the house? (living area / usable area): 158 sqm living area + 48 sqm garage
What is the market value of the land and house after completion? Estimated 500,000-550,000

Construction or purchase costs:

land costs: approx. 41,000 incl. incidental costs
development costs: -
acquisition incidental costs (notary, court, property transfer tax, broker): -
construction or purchase costs (incl. architect, structural engineer): 406,000 house, 32,400 garage
ancillary construction costs (e.g. house connections, soil surveyor, construction power, etc.): 35,000
outdoor facilities/terrace, paths, garden design, fences etc...: estimated 10,000 (flat plot)
financing costs (e.g. fees or commitment interest): -
total costs 515,000

Other costs:

kitchen costs: included in incidental costs
furniture, lamps, decoration: included in incidental costs
other "non acquisition, acquisition incidental, construction or ancillary costs": -

Cost summary:

total costs 515,000
deductible equity 56,000
financing amount 440,000 (we have already used approx. 20,000 equity)

My question would be whether this is generally feasible for us given the current developments above 2%? We have calculated with a monthly installment of 1400-1500 euros. Do you think this is realistic or too risky? It definitely won’t get any better...

If any information is missing, I can gladly "provide it later." Many thanks in advance for your expertise!

The outdoor facilities are ridiculously positively calculated at €10,000. It is certainly feasible, but not at your rate. If I assume 2.5% interest with 2% repayment, I come to €1,650. If the interest rate is 2.8%, you are already at €1,760. Note that this is all based on your best-case calculation regarding costs. If there are cost increases or surprises (earthworks, foundation, ...), the rate will just rise further.

In addition, there are higher ancillary house costs (electricity, building insurance, waste, property tax, etc.). Also higher costs due to the baby.

Is it feasible: probably yes. Would I personally do it: nope.

Kitchen costs: charged in [Nebenkosten]
Furniture, lamps, decoration: charged in [Nebenkosten]
Other "non acquisition, ancillary acquisition, construction or ancillary construction costs": -

I don't see "[Nebenkosten]" anywhere above?

My question would be whether this is generally feasible for us with the current developments above 2%?

No, that would be too tight for me. Especially if income - even if only temporary - falls away due to future children. Sad but true.

Hello, so whether the bank will do that, is possible.

Personally, I wouldn't do it that way. The costs are calculated way too low. Exterior facilities [10.000€] are almost nothing today. [35k Baunebenkosten] might fit, but probably not including the kitchen. Besides, we had so many cases here where the contractors recently just demanded 10% more.

Very optimistic: [440k] with [4400€ netto] Realistic: [460k] with [4000€ netto] (EZ/ TZ) Pessimistic: [500k] with [4000€ netto]

But I see a quite simple solution. Skip the garage -> save [32k] That gives you a [32k] buffer for additional costs, and if things go better than expected, you can still add the garage after 3 years.

10000 for the outdoor facilities seems quite sufficient to me, if you are willing to do it yourselves (and that is fun after all). Plants can be found through classified ads, including already large ones. You can pave yourself, the material does not cost much if you use simple stones. The kitchen can also be bought second-hand first if necessary, just like all the furniture, lamps, etc., if in the end there is not enough money. But I would also leave out the garage at first and keep the money as a buffer.

However, I am an optimist and think it will get better again. When the Chinese finally understand that zero Corona does not work and the war in Ukraine is over. That might still take 1 to 2 years. If then nothing new comes...

Welcome to the forum! Then I see many things that are calculated too tightly. And the totals don’t add up – I don’t understand how you get 515 TE there. What immediately strikes me: - Costs with a child must be calculated. For daycare, you eventually get around 400 € if both work. - KfW is not equity – but you can use the 26 TE for the outdoor facilities, the 10 TE are never enough. - I don’t see costs for vacation. - Honestly, you can’t afford the garage, I would remove it immediately. - The market is so unstable right now that you need a proper buffer – 20%. I wouldn’t rely on a fixed price.