Is financing a new single-family house feasible?

...I consider that exaggerated. Let's say 20 years, that would be €25,000/year per child, so > €2,000 / month. If that were the case, we would have a negative household income with 4 children... :D

Sounds exaggerated at first, I thought so too. But let's do the math together ... Why do most people build at all? Or invest huge sums in a larger property. A bigger car. The vacation, which spans years during holiday seasons. All-inclusive study financing. Daycare. Sports, hobbies, lifestyle. Not to mention clothes and groceries. It all adds up. And as mentioned at the beginning, building a nest wouldn't even be considered ... without children. There, €500,000 for a boy is still calculated as "small". ;)

Sounds exaggerated at first, I thought so too. But let's do the math together...
Why do most people build at all?
Or pour huge sums into a bigger property. A bigger car. The vacation that spans several years during the holiday season. All-inclusive financing for studies. Daycare. Sports, hobbies, lifestyle. Not to mention clothes and groceries.
That adds up to quite a bit.
And as mentioned at the beginning, building a nest would never even be considered... without children.
So 500,000 for a boy is still considered "small". ;)

A child is supposed to cost half a million? Does that already include a Porsche for their 18th birthday? That number is nonsense. Normally, people talk about 150,000 to 160,000 euros per child. Recently, Finanztip had a video on YouTube about this topic ("What does a child really cost until the age of 18?").

Of course, children are expensive, but you can really exaggerate it. Especially with clothes, you can spend a lot, but also almost nothing. We also buy our children new things sometimes if we like something. But basically, we could clothe them entirely with used clothes from family/friends. It feels like almost everyone still has boxes of baby/kids clothes lying around somewhere. We even have stuff that my wife wore as a child. Or when I see acquaintances giving their kids Playmobil for over 100 euros at Easter... Sure, that’s not possible anymore when almost half of the household income goes to housing. But in my opinion, that’s not a problem either. Personally, I think it’s better if the children have a nice garden to play and run around in.

Here, university including accommodation is also mentioned. By the time that comes around, the original poster will already be in their late 40s and earning accordingly more. Besides, you can finance your own studies, as I know from my own experience.

The original poster is also at an age where the big salary jumps (at least statistically) are still ahead. Our calculation was originally rather optimistic, but thankfully a surprising raise came along and now things look quite different again. Maybe the original poster can talk to their supervisors and explain their situation. Especially if they themselves have a house and children, they might be open to negotiate. Even if there’s no immediate raise, you can work out a plan together on how the original poster can develop so that he earns more in a year or two.

If the original poster is really convinced of the plan and has now found the ideal plot, then I would take the risk (the monthly payment isn’t unreasonable now). When you’re passionate about a project, you somehow grow into it. I myself have noticed that I have become much more frugal in recent weeks without it really being difficult for me. Then it’s just a döner instead of Thai food or a trip to the lake instead of doing something in the city. Conveniently, the low-cost activities are often more exciting for the kids anyway (and also less stressful for us).

Hello,

I have the feeling that when it comes to financing questions, some people here only seek positive reinforcement and stop communicating when they receive negative feedback about financing. Therefore, here is a direct question to the #TE# about the current status of things?

Regards

Hello everyone! First of all, sorry for the late response. I was out all day yesterday.

Thank you very much for the numerous responses from you. I will try to address the topics; please forgive me if I have not answered/commented on every question/statement 1:1.

Regarding the outdoor area for 10k: Everything will be done by ourselves. We have many friends who have the necessary materials and skills. We have no high demands here. The yard will be paved, the terrace covered with slabs, and the rest will be a green lawn. I think 10k is a good estimate.

Regarding the garage: This is definitely mandatory since we otherwise have zero storage space except for a 1m high attic and a 12sqm technical room.

Regarding saving money: We certainly have saving potential with the house, we basically have a list of things we could do without if necessary (e.g. electric blinds in the attic, 3 huge windows on the ground floor, one of which could be omitted, etc.) That would certainly save several thousand euros. The house price is basically the "turnkey price." We will do almost everything ourselves from the screed and electrical work onwards. Overall, we have no high demands for the house, no smart home or other luxury things are needed. We don’t need expensive furniture or designer parquet. Just a little house to LIVE in.

Regarding costs for the child: There is great support from family, all 4 parents live in the same town where the house is being built. The daycare is free. Of course, costs will come up that we might not be anticipating now, but as said, there is great support.

Regarding the fence: We don’t want one; friends will build on the right and left of us.

Regarding the KfW funding: It has already been approved, albeit two days before the deadline, but approved.

Regarding parental allowance: That is only for the first year. Afterwards, W will work again and surely earn around 2000 euros, that works as said since the 4 parents live in the same town and the two female parents only work part-time.

Regarding M’s income: That will definitely increase significantly in the coming years!

In general: Building our own house has always been our second biggest wish (after having a child). We currently live in an apartment that has limited space for one child. We live in the countryside. There aren’t many offers for existing properties or larger rental apartments here. What would you do in our position? Buy an old wreck and be dissatisfied all your life and have money, or build a house, be happy, and (initially) have less money?

Maybe I created the thread with the wrong expectations. I thought maybe I would come across people in a similar situation to ours. And yes, I had actually hoped to read a couple of encouraging/positive comments or to get some kind of confirmation. This is not to say that the aspects against the project are not valid. We will probably have to wait and see what the talks at the banks bring and then maybe take action. It remains exciting :)

Cheers

Your comparison to the existing property is sugarcoated. It doesn’t have to be a wreck. If you build new, you won’t have "less money," you will have very, very little money for years. But if the friends build next door, of course, you’re not allowed to be left behind. Again: You want to finance half a million with at best 4.5k net. In the past, a monthly net times 110 was said to be the absolute limit. And that was before the interest rate jumps. They will simply kick you out with 10% equity. Period.

Nice that you still replied :)

Do you have a special regulation in your town, otherwise the daycare in RLP is only free from age 2 (although in any case, food costs apply).

I will refrain from further comments/arguments because it is obvious that you want to do it one way or the other, regardless of whether you can objectively afford it or not.

Just one last thing: please educate yourselves, right now you are boundlessly naive. Leaving out a window will not save any costs. We are currently talking about a 20-30% buffer that you need due to the current situation.