Is financing possible and realistic?

Hello everyone.

My girlfriend (soon to be wife) and I are planning to build a house on my parents' property...

A short introduction about us:

Income:
He: 28 years old €2100 net
She: 28 years old €2400 net

Fixed expenses:
He: Car €420 monthly
She: Car €250 monthly

Equity:
He: Land (value to be determined)
She: Construction incidentals

Desire to have children:
Not definite, rather no than yes

We are currently clarifying whether we are allowed to demolish a vacant shed in the outskirts on my parents' former farm to build new there.

It is to be a single-family house with 150m². We are thinking of about €250,000 construction costs.
Some of the work will be done ourselves to manage the budget.

How should a proper financing look like in our case?

Will the car loans be an obstacle?

I would really appreciate helpful answers :)

Thank you very much in advance!

If it stays at 250k, it would be a "relaxed" financing. How much are you saving monthly right now? Or is the money being spent?

Topic children:

more no than yes, who says that? you as a man? Why then the 150 sqm? to have a disco every day? Sorry if I seem a bit provocative, BUT women are quite strange. At 31, your wife sees that all her friends no longer go to discos but push strollers instead. Then she wants to join in and suddenly less money (because part-time work and children cost money).

So also take a moment to reflect realistically on how the income situation will look then and whether you want that

Monthly we pay "Kostgeld (300€)" which can basically be seen as rent. Currently, about 500€ is being saved monthly and the rest is just spent. And very well spent at that... We are aware that you have to switch gears mentally for that, and we are ready for it!

The disco disco time is also slowly over for us... Now the weekends are spent more relaxed.

The "Child doesn't have to" also came from her mouth. But as you already write, you never know how the switch in her head will flip.

Does anyone have a guideline in mind that the bank uses for calculation? That is, how much money per person must remain for living expenses in a financing?

Monthly we pay "Kostgeld (300€)" which can basically be seen as rent. Currently, about 500€ is being saved monthly and the rest is just spent. And spent extremely well... We are aware that you have to switch your mindset for that, and we are ready for it!

The disco disco time is also slowly over for us... Now the weekends are spent more relaxed.

The "child doesn't have to" also came from her. But as you already say, you never know when the switch in her head will flip.

Does anyone have a benchmark in mind that banks use for calculation? Like how much money per person after living expenses must be left over in financing?

With such a very good income, only saving 500€ monthly, with almost zero rent, it's about time to switch the mindset.

250k will certainly cost you around 1,500€ per month including additional costs.

I also don't understand what you always have with the bank. Banks usually have "normal" living expense flat rates. You certainly won't fall within their grid since you live too well. So what is the goal? Simply to meet the bank standards?

Banks say 550€ per adult + 2€ per sqm for utilities. You spend 3,000€ per month minus Kostgeld, cars + 500€ saving. I would say, well above the bank flat rates^^

Hi ,

Fixed expenses: He: Car 420€ monthly She: Car 250€ monthly

So these are not the costs for maintenance/upkeep/wear but loans. How high are the remaining balances? Only then can one assess whether you have equity or if you have "debt."

You should discuss the desire to have children concretely before building the house. It's important for financing and of course also for the floor plan. But you shouldn't rush any of this anyway. This is THE investment in your life.

It should be a single-family house with 150m². We were thinking of construction costs around 250,000€. Some work will be done by ourselves to manage with the money.

150m² and 250,000€ only works with an extreme amount of own work. If you are not willing to do this, you should expect 2,000€/m² (=300,000€). Garage or something like that comes on top separately.

We just said that we want to "treat ourselves" before building a house... And for us, that included flying on vacation 3 times a year, going on city trips on weekends, buying expensive shoes, etc.

These are the costs for the car loans, that’s true. Insurance amounts for both cars together are under €1000 per year. Maintenance is included in the service contract as part of the financing, and there is no wear and tear, as we exchange the cars for new ones every 3 years...