Is financing theory practical?

Hereby I am getting back to you with some news:

In the meantime, we applied for a plot of land and actually received positive feedback a few days ago. Now a plot of nearly 600 sqm is reserved for us.

The financial situation has also improved. The plot will be paid for by a gift. Therefore, we do not need to take out a loan for this.

Our plan is as follows:

In the next 4 years, we want to get married and complete the family planning. During this time, we will continue to save equity so that then, with a paid building plot and about €80,000 - €100,000 equity, we can take out a loan.

What do you think of this plan? We are calculating with a financing amount of about €450,000 - €500,000. That should be doable, right?

Regards

Thank you for the information. However, everything was previously clarified with the tax advisor, so there are no further issues here.

You should also consider that in 5 years a house will definitely cost more than today and the interest rates are likely no longer at 0.0% (ECB).

We also want to start next year with only about 25k equity.

You should also consider that in 5 years a house will definitely cost more than today and interest rates will most likely no longer be at 0.0% (ECB).

We also want to start next year with only about 25k equity.

The OP had already discussed beforehand that in the current situation the income will not be sufficient for a build. At the earliest from the start of his wife's career – better planning certainty after child 1 – a payment would be manageable for him. He took this into account and initiated the land purchase in the manner described. So that the hurdles/obstacles are tangible for him and he has more planning security due to the financial situation, he aims to build according to his statement within at most 5 years (as I understood from post #27).

Basically, you are right – prices and interest rates will continue to develop.

...the interest rates are probably no longer at 0.0% (ECB).

But? Do you know more than we do? Let us be part of it.

Instead? Do you know more than us? Let us share.

Well, Toxi - the period of 5 years is actually quite long. Therefore, the chance of a change in interest rates is not unlikely. We don't have to weigh the words too strictly.

However, you are of course right - no one can see into the future .