Is financing a new single-family house feasible?

The 700€ fixed costs include all our expenses with heating costs, energy costs, water, and all insurances such as dental supplement, life insurance, building insurance, mobile phone contracts, etc. So not just the incidental house costs.

We are currently also looking and are already really worried about the current interest rates.

I admit you get worried starting from 5%. But not at 2-3%. 2-3% is indeed more than <1%, but still very, very low. Worries arise with unpredictable construction costs, as they seem to be skyrocketing right now; financing, however, is calculable.

As if the employer is interested in the employee wanting to build. Some people have ideas. :rolleyes:

I think they do. When I told them about our plans, I was immediately promised support (without even asking for it). I am well aware that I am incredibly lucky with my employer, but even at my previous employer there was support for building a house or buying property (even though it wasn’t relevant to me at the time). For example, a former colleague received an interest-free loan from the company when he and his girlfriend bought a condominium. Not for the entire amount, but he still saved a lot of money that way (this was before interest rates were at rock bottom).

I say… “Get pregnant first,” put aside the extra costs you would have with homeownership for the next 3-5 years (calculated installment minus cold rent, plus expenses/costs, see #2), then see if it works out. If yes, you will have saved €85-100k in 5 years and the project can begin.

Then one can only hope that interest rates and construction costs do not rise further over the coming years.

Yes, you are right. 2-3% is still very low. Nevertheless, with the current prices, there is a difference whether you finance, for example, at 1.5% or at 3%. We are also looking at the moment. However, if then from the developer where the price is more or less fixed. We would have to finance just under 600,000 for what we are looking for. And that is already a difference monthly.

I grant you the stomach ache starting at 5%. But not at 2-3%. 2-3% is indeed more than <1%, but still very, very low. Stomach aches occur with unpredictable construction costs, as they seem to be skyrocketing right now; financing is calculable.

You can't see it that way. At least construction prices are still rising, as are interest rates. Therefore, the increase to 3% is dramatic if there is no corresponding counter-movement in prices. Properties in need of renovation and building land will probably be the first areas where the hot air escapes and prices approach those of 2013 again—simply because no one else can afford it otherwise.

Regarding the outdoor area for 10k: Everything will be done by ourselves here. We have many friends who have the necessary materials and skills. We don’t have high demands here. The yard will be paved, the terrace laid with slabs, and the rest will be a green lawn. I think 10k is already well calculated there.
There is a lot of support from the family side, all four parents live in the same town where the house is being built. The daycare is free. Sure, costs will come up that we might not be counting on now, but as I said, there is great support.
Regarding the fence: We don’t want one there, friends will build on both right and left of us.
Regarding KfW funding: It has already been approved, albeit two days before the deadline, but approved.
Regarding parental allowance: That is only in the first year anyway. After that, W will work again and will surely earn around 2000 euros, that works too, as I said, the four parents live in the same town and the two female parents only work part-time.
Regarding M’s income: There will definitely be more progress in the coming years!
In general: For us, it has always been the second biggest wish (after having a child) to build our own house. We currently live in an apartment that only has limited space for one child.

Unlike most other forum members, I think this sounds like a really, really great project and you should definitely do it. In my estimation, rents will continue to rise and you have great support from your family and friends, so you can approach the house building project calmly. It doesn’t all have to be now and immediately, some things will just be bought or optimized bit by bit.

Good relationships and support save a lot of money when building a house (... and even more with parents and possibly grandparents on site ;-) ). Besides, in your own house you have influence on the extra costs, which is only limited in rental apartments. I am still surprised how high the extra costs are in rental apartments.

And if it temporarily gets financially tight, you can certainly get a monthly interest-free loan from within the family, which you then repay later when the salary situation has improved or the children are older.

I dare say: Do it, you will manage. :)

Hey sorry, but leave out the garage. ... (the Germans and their garages. I just don’t understand it.)

That’s the men. ;-) I hope my husband might give up the house for his favorite after all ... although, since I recently drove into a dent, he loves it less. ;-)

I find garages so ugly and haven’t even seen a house that looks prettier because of the garage. For me, it’s almost a fixed idea that I notice the ugly garage more strongly than the actual house.