Is financing for house purchase / house construction feasible?

Thank you for the feedback.

In the last 30-40 years, interest rates have more or less steadily decreased.

> I wasn’t really aware of that. But they basically can’t go any lower, right?

Then there are only the following options:
1. super cheap plot on the adW and a manageable little house
2. normally priced plot and tiny house
3. from €150k equity and it becomes a house
4. condominium
5. already secure a plot now (regardless of price) = buy it and calmly plan and pay off the plot over the next two years. That’s also equity and plots won’t get cheaper

If (and nobody believes that) interest rates rise significantly, construction prices will fall again. So you won’t really notice it that much. And we don’t need to talk about more than 0.5%.

> We also considered buying a plot. It just hurts to pay for something you don’t have yet.
> I would have thought much more that the interest rates will rise soon. Of course, it would be great if it stays like this or something similar.

I also think financing interest rates are less of a risk, rather further price increases. Construction prices will likely rise by 3-5% per year. Plot prices depend on the area again.
Research market statistics; if prices have risen sharply in the last 5 years, it might really be better to secure the plot as soon as possible (warning: often there is a building obligation).

However, I also find €300,000 a bit low.

> That’s true, prices keep rising relentlessly. :/
> Thanks for the tip about the building obligation; I wasn’t aware of that.

We are in a "similar" situation, but we are financing €250,000 more than you, have €50k more equity than you, and also earn about €800 more than you. In terms of age, except for a 2-year difference, we are exactly the same. We decided to build immediately and not save up further. However, we were also lucky to get a building plot, which ultimately led us to decide now; otherwise, we probably would have waited another 1-2 years.

Nevertheless, in my opinion, you can't start too early.

Construction prices will continue to rise, interest rates definitely won't decrease further, and I believe land prices will continue to increase depending on the region.

Thus, a lot of equity could be "gone" again in 2-3 years... You are probably paying rent currently as well? That you could save then.

Sure, you can't manage a €500k loan, but it might be enough for a small house if you get a plot cheaply, which of course would be a prerequisite before anything can even start.

I would advise you to buy a plot as soon as possible if you are 100% convinced of homeownership. You can't really go wrong with that at first. Variable financing is also possible here without being tied to a bank. In the meantime, it means: save, save, save. Put aside as much money as you can.

I find the rate of €1,100 completely fine and properly estimated given the net income, but of course, it always depends on many factors...

300k financing including house and plot will not be feasible. Therefore, you probably have to raise the financing by another €50-100k. For €400k, depending on the region of course, you might be able to get something. Calculate the monthly rate for this, meet with a bank, and have them run the numbers for you — then you will quickly notice if your project would be possible or not.

You are also so young, a calculated duration of >40 years is easily feasible.

Your financial situation sounds very healthy. Due to the currently low interest rates, you could also get 100% financing and start immediately. (Sollzins 15 Jahre fest unter 2%). Personally, I would recommend saving up a little equity first.

Your financial situation sounds very healthy. Due to the currently low interest rates, you could also get 100% financing and start immediately. (Fixed interest rate for 15 years under 2%). Personally, I would still recommend saving up a little bit of equity.

Yes, definitely. I also think you would easily get 100% financing. By the time you actually start, you can easily cover the incidental construction costs yourself if you can save €2,000 per month.

Interest rates should definitely be well below 2%, more like 1.7%, we had already inquired about all that a few months ago.

To be honest, I wouldn’t necessarily recommend saving further if the opportunity to build arises.

The €25k per year doesn’t bring you much... Then comes the same old story with rental costs, rising construction costs, etc., which is quite justified. If possible and if you find something suitable, I would start immediately in your place.

I share your thoughts . That’s why it’s so difficult for me, especially since owning a home has always been a dream of mine. However, I don’t want to be blinded by that either.

As an example, a financial advisor recommended a construction loan from ING. The advantage would be that you could change the repayment rate twice during the term. For instance, we could start with 2% and after a few years increase it to 2.5 or 3. Of course, the fixed interest rate period is important to me. We would then have that for 20 years.

The question always remains whether it’s even worth financing 300,000 euros. As mentioned, the land would cost at least around 40,000-60,000. Additionally, there are the garden and possibly a garage/carport. Can you get something "decent" for that price? I have to say our size requirement is about 120 m².