Is financing possible from your perspective?

Hello everyone,

I have been reading for some time now and slowly we are moving towards building a house.

Me: 30 years old
Net income €2,600

Her: 28 years old
Net income €2,100

We already have a plot of land in Bavaria worth around €160,000 (paid), but it is not yet developed.

We would like to build 2 full floors + attic (attic initially not developed)
approx. 180m² solid construction, with a masonry double garage, without a basement, without a ventilation system,
gas heating, underfloor heating, electric shutters, fireplace, without balcony, individual contracting,
architect's estimate is about €480,000 (could that be right, seems a bit much to me ::)

We have about €100,000 in equity

If I now include the ancillary purchase costs, development, etc., I would come to a loan amount of about €450,000 ^-^

In your opinion, would this be feasible with the above income?

Children are planned in about 5 years (1-2)

To be able to say that exactly, you would need to go into more detail, savings rate, etc. But equity is available, the property is already paid off. That doesn’t sound bad. Maybe your wife then just can’t stay at home indefinitely when children come. Prices are always very individual, 480 is not unrealistic but probably already at the upper end. Depending on the equipment, etc., it can be that additional costs and everything included are already part of it. But you can’t really answer that in a general way either.

How would the salary develop during parental leave and afterwards, and how did you come to your equity? Saved by yourselves or was there a considerable contribution from the parents/grandparents, and above all, within what time frame was the money saved? The salary would be too low for a €450,000 loan for me. Our salary and age are similar and we are taking out €200,000. We didn't want to borrow more to avoid making compromises elsewhere.

Best regards

So the property was gifted to us, the €100,000 equity was saved by ourselves. That the wife cannot stay at home forever and has to work again, would be out of the question for me anyway with such a loan :) We currently pay €1,100 in warm rent and save about €2,000 per month, without having to restrict ourselves anywhere. The plan would be (as with most) to pay back at full throttle for the first 4-5 years, so that for about 3-4 years afterwards, possibly a bit less is paid back, due to child/children.

20y fixed interest = 1.8% - installment: 1400€/month
In other words, I will soon have similar conditions but 100k less loan amount.
That would be 30% of the net income, but 250 additional costs/month will be added.
When and if children are planned?

regards

20-year fixed interest = 1.8% - installment: €1400/month
In other words, I will soon have similar conditions but €100k less loan amount.
That would be 30% of net income. However, there are still €250 incidental costs/month.
When and if children are planned?

Regards

Children are planned in about 4-5 years.
We would definitely set the installment to about €1,800, with 3 free repayment changes possible
(It’s not exactly little now, but it should be possible and I thought it doesn’t hurt to be a bit forced to save)