Is financing for a new single-family house possible?

Hello everyone,

my wife and I currently have the opportunity to purchase a plot of land in a new development area.

General information about you:

[*]How old are you? 35/33
[*]Do you have children? Yes, two. Another one is planned
[*]What do you do professionally? Employed software engineer / civil servant in the higher judicial service
[*]How many hours do you work? 40h / 24.6h

Income and asset situation:

[*]What income do you have (net)? About €6,000 including child benefits
[*]How much equity do you have? About €250,000 (including an interest-free employer loan of €35,000) + €200,000 as anticipated inheritance.
[*]How much equity do you want to invest in the house project? Almost all except a small buffer

Expenditure situation:

[*]€3,566 (current expenses excluding rent (living rent-free) + savings for vacation). Utility costs already estimated and allocated for the future house).

Income and expenditure totals:

[*]Income: €6,000
[*]Expenditure: €3,566
[*]Balance: €2,434

General information about the property:

[*]How large is the plot? 470 m²
[*]Planned single-family house with 160 - 170 m²
[*]Larger garage with space for one car + bicycles, storage space
[*]Rhein-Neckar region

Construction or purchase costs:

[*]Plot costs: €213,732.50 fully developed, including acquisition incidental costs
[*]Construction costs: Currently we are calculating about €550,000. However, we are considering whether we can reduce costs somewhat with a shell house and arranging the interior finishing ourselves.
[*]Additional construction costs: €66,100
[*]Garage: €30,000
[*]Outdoor facilities: €25,000
[*]Total costs: €884,832.50

Other costs:

[*]Kitchen costs: €20,000
[*]Furniture, lamps, decoration: €10,000

Cost summary:

[*]Total costs: €914,832.50
[*]Deductible equity: €450,000
[*]Financing amount: €464,832.50

Necessary loan details:

[*]Theoretically possible loan installment: €2,434.

Now we face the difficult decision of whether our plan is realistic or not. We are afraid of overextending ourselves completely.

Thank you for your help.

The costs are adequate. That should work. Whether it ultimately has to be 170sqm for a normal family is another question.

With a net income of €6,000, you can also pay a suitable installment. Otherwise, given almost €3,600 in monthly living expenses including additional costs, I see that you maintain a very generous lifestyle. It is especially there and in the living space that I see the two biggest levers.

Hi,

the central question is: what happens when the third child is born. Then your salary decreases, and you run into financial problems.

Regards, sci

Hi, the central question is: what happens when the third child is born. Then your salary decreases, and you get into financial trouble. Regards, sci

Why? The salaries are already adjusted for children, one partner only works part-time. It probably won't get worse with the third child.

Nice example of who can still afford a new build nowadays:

[*]Big inheritance +
[*]Big equity +
[*]Big income

I don’t understand the problem! :)

[*]Fat income

6000.-- for two including child benefit is not really a great income for an engineer and senior service and the region