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 benefit
[*]How much equity do you have? About €250,000 (including 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 of it except for a small buffer.

Expense situation:

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

Income and expense totals:

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

General information about the property:

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

Construction or purchase costs:

[*]Plot costs: €213,732.50 fully developed, including acquisition incidental costs
[*]Construction costs: Currently we estimate about €550,000. Considering whether we can reduce the costs a bit by building a shell house and managing 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 information:

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

Now we face the difficult decision whether our plan is realistic or not. We are afraid that we might overextend ourselves completely.

Thank you for your help.

6000.-- for two people including child benefit is not exactly a great income for an engineer and upper service and the region

Nice example of envy. That’s not what the OP asked for...

I think it's sensible to at least make this clear once. You only have one life, and do you want to spend it completely paying off a house? If you want to, fine, but I think it's good to at least ask yourself the question. Because with a cheaper house, you suddenly have a lot of money and time left (because less work is necessary). Especially when the conditions are so ideal, you don't have to go to the limit, but can use that to reach the goal of a "paid-off house" faster. Of course, that's not a must; there are also people who don't want to pay everything off but want to sell beforehand and then move into the next house, a bit like leasing. We asked ourselves that question back then and then bought "below our means." You don't have to do that, but maybe you should be aware of it. Because it gets unpleasant if you are living on the edge and then in the end, you are not satisfied because both have to work 100%, and then not much is left besides the house. Because if all the money that's left after regular expenses and the savings rate for vacation goes into the house, I find that very tight.

We asked ourselves the question back then and then bought "below our means."

Nice example of envy. The OP didn’t ask for that...