Is house building realistically possible?

  • Erstellt am 2019-10-28 10:29:48

smörrebröd

2019-10-28 10:29:48
  • #1
Hello dear forum members,

my wife and I are considering building a house in the (greater) Magdeburg area. My wife is very conservative when it comes to financing issues and absolutely does not want us to overextend ourselves financially (by the way, I don’t want that either!).

Therefore, I would just like to ask around and request an assessment. Our situation: We are both in our early 30s and civil servants in the higher service of the state administration. At the moment, we have a household net income of about €6,700 at salary level A13, including child benefit for one daughter. A promotion to at least A15 is very realistic in terms of position (both are in top state authorities, and the positions are also set accordingly). This fact is relevant insofar as salary development is at least somewhat predictable. Our expenses include private health insurance (about €570 for all three), warm rent of approximately €1,200 (warm), and other fixed costs of around €1,300. Available equity at the moment is about €60,000. We are only now really starting to break down our costs and accordingly save.

The plan is to build a single-family house with about 140-150 m² of living space, possibly with a garage. We do not have a plot yet but are in discussions about it. Two plots are available (about 700 m²) for roughly €65,000 or €88,000, excluding additional costs. Overall, I have set an upper limit of €460,000 (plot, house, possibly garage, additional costs).

My question: From your point of view, is this feasible given our personal situation? Or are we overextending ourselves? Is the budget perhaps even set too low? I know these are just rough data now, but I would be grateful for a general assessment!

Best regards
 

RotorMotor

2019-10-28 10:49:59
  • #2
I would say everything fits perfectly!
 

Joedreck

2019-10-28 11:43:31
  • #3
I think the budget can be set higher. But basically, it is not too low. You are also in an extremely comfortable situation. You can almost pay for the property in cash. Take the property that you like better. If possible. Then you finance the rest and pay it off as quickly as possible. During that time, you can plan the house excellently. According to your needs and wishes. The floor plan, etc. Then it goes towards the general contractor or architect and is fully planned. During this entire time, equity is further accumulated and negotiations with the bank are conducted. I would be surprised if they do not compete for the project. Good luck!
 

Mottenhausen

2019-10-28 14:37:17
  • #4
Who, if not you? Secure, solid income, region with affordable construction and land prices. Don’t waste time and get started.

Project volume of €460K is tight, but you can afford more; you’ll then notice what works and what doesn’t as you dive deeper into the construction jungle.
 

Yosan

2019-10-28 21:11:05
  • #5
So with the net income in the region, you almost feel f***ed over when asked the question
Let's go
 

ypg

2019-10-28 21:37:05
  • #6
Someone is really reaching here. Problems could arise in that you are not able to properly assess realistic numbers.
 

Similar topics
20.07.2011House construction: Equity / incidental construction costs realistic?14
03.04.2012Buying a house without equity?29
11.02.2015Cost planning for a single-family house including land, additional costs, architect32
21.02.2015Impacts on loan when equity is in property17
21.04.2015Is a floor plan with a garage feasible on the property?29
15.06.2015Property and additional costs - is the construction sum realistic?16
15.08.2016Property - Building window - Location of house and garage44
20.12.2023Placement of house and garage on plot12
10.04.2016Property as equity? Living costs with children?19
21.04.2016Is financing with land and equity possible like this?20
08.08.2017Buy land with cash? How to build financing?44
10.02.2020Place house, garage / carport on the property93
11.03.2020Land as equity capital - Worth the wait?10
05.08.2020Financing without equity except for land - Bavaria13
20.10.2021Alignment of house and garage on the property18
06.11.2021Financing land and single-family house near Mainz27
06.03.2023Pledge existing property to increase equity?13
29.06.2023Position of garage on property, specification in development plan22
26.03.2025Orientation of single-family house + garage on west-east plot with street on the west18

Oben