Is land and house construction possible with our income?

900€ credit installment all fall within the range of 250,000 - 300,000€ (Originally from the Augsburg area)

most people just talk a lot of rubbish and/or try to act important. Anyone who built a house for 250,000-300,000€ in 2016+ and only pays 900 EUR credit has either a high income or significant equity.

We are building a house for just under a million all-in and also only have a fixed installment of ~1100 EUR. How that works

most people just talk a lot of crap and/or act important. Anyone who built a house in 2016+ for 250,000-300,000€ and only pays 900 EUR credit either has a high income or significant equity.

We are building a house for just under a million all-in and also only have a fixed rate of ~1100 EUR. I wonder how that works

only a million??

however, I have a fixed-term employment contract, which will only become permanent in 2 years

That is a problem.

And at some point an inheritance of about €100,000 from my grandma will be due.

You can only count on inheritances when they actually fall to you. If grandma becomes in need of care for a longer period for whatever reason, there might be nothing left to inherit. Also, you are not automatically favored in the line of succession.

170sqm

You have to reckon with €425 average additional costs. Have you thought about that?

The inheritance, my girlfriend’s income and my parents’ rent should be completely disregarded for now.

If you only deduct the garnishment limit from your salary and take into account the installment, there isn’t much left.

Everyone has to be on board for that.

Is it legitimate if I estimate the personal contribution at €25,000 and thus reach €50,000 equity?

No, but ultimately that doesn’t matter.

By the way, a two-family house is always more expensive than a single-family house. I assume that’s not accounted for in the offer.

What you can do:

Talk to several banks and financial brokers about what is possible in your situation.

Create a precise cost breakdown of what your dream costs.

And if both match, then you can get started. If not, you have to work on the situation.

By the way, even though it’s frowned upon to let yourself be sold certain products; a building savings contract with an acquired claim to a €30,000 loan (keyword: non-secured loan) would be very welcome in your situation.

I’ve heard from many that they have a credit installment of about €900 all in the range between €250,000 - €300,000 (Originally from the Augsburg area)

I thought you didn’t want to be talked into a beautified financing??? €300K at €900 and saying only 2% interest means after 30 years you still have a residual debt of a bit more than €100,000; and then comes RETIREMENT.

Also, no one wants to admit they let themselves be pushed into an overpriced loan. With installments and terms people like to round down generously and the price of the house gets more expensive after every barbecue.

Ok, actually the topic was already concluded for me on page 3 for the time being

But so as not to leave any response owed...

All income was calculated with the worst-case scenario imaginable (except my death).

The actual situation currently looks like this:

- My parents have rented the ground floor and basement of a detached house for 30 years (100 sqm)
They have to pay about 650 cold rent + heating costs at a level that would be unaffordable without a wood stove (prefabricated house 1970, no additional insulation)

- My grandma, 85 years old, receives a pension many could only dream of, the house is paid off and stands on a leased land plot from the church (cost of the land linked to the wheat price)
Additionally about €120,000 in cash assets

- My income is currently €2100. Of that I pay €990 warm rent, €270 credit for a BMW. The apartment has been lived in for a year during which I was able to save about €4000 from my own funds and have lived not badly. Car insurance + tax was paid by me myself for the whole year (€1400)
The financing was calculated on the unlikely assumption that I will never earn more in the next 30 years, will never marry, and my girlfriend, with whom I have been together for 6 years, would pay not a cent in rent or utilities.

So, and finally... the planned house is a normal detached house with a separate entrance and meters for the upper floor, so not a real multi-family house or anything.
I would of course sell the car when building the house.
My parents' rent in the new house is also more realistically about €500 for 60 sqm. I just calculated €350 to be on the safe side.
No money from grandma because in her opinion she is already scraping by and I don’t hold it against her that she wants to keep everything for now... it's her right anyway!!

We will do a detailed cash audit and get several offers and then very, very carefully consider how to proceed over the next 5 years.

Best regards

Lukas

Lukas, don’t let yourself be misled, this forum isn’t exactly full of DIY guys. You have an overview of your finances. What you only roughly estimate, in my opinion too roughly, is the cost side. Do you know people from the construction industry who could calculate that for you with their software? Architect? Structural engineer? In construction, the most expensive thing is certainly, as everywhere in Germany, a high-wage country, the labor. And that takes a lot of hours. The material is the lesser factor. But you have to separate all trades from each other. And consider what I do myself, what I have to contract out. It starts with planning. Since you are not authorized to submit at the building authority, you will have to contract this out. Then civil engineering, which due to the use of machinery is rather contracted out. Building construction, some can do that themselves. Carpentry and roofing? Windows, doors, drywall? Heating and sanitation? Electrical? Screed and plaster? Tiles? Painting? Flooring? Garden landscaping and connections? Unfortunately, the work must be done, also in order to appear credible to the bank. If all that fits, you will create a value that exceeds the loan requirement. Why shouldn’t the bank go along with that? If it goes wrong, they have the house. Karsten

Sell a car to build a house. That is the right approach