Is my house building plan realistic?

From 1500€ per month I can pay for the daycare and the costs to get to work. But apparently, it is handled differently with you. Your big advantage is certainly that during the construction phase there is no double burden due to rent & credit. What is important in the end is whether you feel comfortable with it and that finances are not always a topic in everyday life. Try to get the rate towards 1200€ by reducing costs, then you can also cover the bike, the class trip, and the vacation in the future.

From €1500 a month I can pay for the daycare and the costs to get to work. But apparently, that is handled differently with you. Your big advantage, in any case, is that during the construction phase there is no double burden of rent and loan. What matters in the end is that you feel comfortable with it and that finances are not always an issue in everyday life. Try to reduce the rate towards €1200 by cutting costs, then you can also manage the bike, the class trip, and the vacation in the future

As I said, we live in the countryside or village, and our costs are significantly lower, for example, for daycare, than in a big city. The way to work is 5 minutes by car, and I already have these costs currently. The daycare is mostly covered by my employer. At the moment, I can’t imagine how one gets to €1500 per month with these two positions? Oh, and the €1200 monthly rate would actually be my hoped-for goal, provided that the online construction financing calculator gave me the correct result.

Not too long ago, people here in the forum sensibly talked about 5% annuity. That makes 500€/100,000€ loan. Due to the lower interest rates, you might end up with 400€-450€ annuity/100,000€ loan. You just have to keep in mind that the term actually gets longer with the same initial repayment rate at lower interest rates. That’s why there are no longer loans with 1% initial repayment, and even 2% is rather the lower limit nowadays.

Our child was born more or less parallel to the house construction and we had to start paying the first installments right away during parental leave. For this reason, we set the repayment rate to a low 2% and make up the rest through special repayments.

In general, one should not underestimate the expenses for a child and for the house. I sometimes have the feeling that the (variable) living costs are almost twice as high as without child and house. Here a garden hose from the hardware store, the next week a patio tub, then a few plants and lawn fertilizer. The child has grown to a new size again? That means 6 new pairs of shoes again (house shoes, street shoes, rubber boots, and all of this for home and daycare). For daycare, a few additional rain clothes, etc.

Then there are the daycare costs, which also vary greatly across Germany. We are rather on the lower price range with around 200€ + food money. I have also read amounts of up to 800€ here.

So, now I have done some calculations again, but unfortunately I still come to 450-500K€ for the house, meaning with some buffer considered we still need a 350K€ loan and I calculated it as follows:

Year 1-10:
Initially pay less (due to desire for children, etc).
350K€ loan with 1.5% effective interest, 10 years, 2.5% repayment. That makes a monthly rate of 1170€.
With a total net income of 4600€ (including 13th month salary etc.), that makes 1/4 of the salary. That should be possible, right?

Year 11-20:
There is still 255K€ remaining credit.
Let’s assume then 3% effective interest and 3.5% repayment, that results in a rate of 1380€.
Thanks to increased salary (in my job 3-4% annually), that should also be manageable.

Year 21-33:
There is still 152K€ remaining credit.
Now assuming 4% interest and 8% repayment, this results in a rate of 1590€.
Again with salary increase, this should also be possible.

In addition, as already mentioned, we will inherit 2 houses sometime. And for old age there are also capital life insurances of about 200K€ available.

Don’t you think this plan will work? Or do I have a major calculation error?
Of course, things can go badly and interest rates could be at 6% in 10 years, but such things can never be predicted.

For years 1-10, I see the problem, as I already wrote.

Your project is way too expensive with the salary and conditions. In my opinion, it will get you into trouble. As soon as the child is here. That is my opinion. You can do whatever you want and can justify. It is your life, not mine.

Apart from that: Hopes about inheritance – whether from 2 or 20 houses and any insurances: Please don’t be mad if I say that these points are at least completely irrelevant for financing (and living).

I never hoped for an inheritance. But it will eventually happen to me, unfortunately. It will then be debts. And problems.

But one can also have luck or bad luck in life.

Generally, I think one thing and say it clearly: What you intend in your initial description: Will go wrong. You are building castles in the air. Or a house and afterwards you will suffer endlessly.

Well.... As you write, you will go through with your plan anyway. You are completely resistant to advice. That at least shows a strong character. Hats off. I’m keeping my fingers crossed for you/you all: That everything goes well. I mean that seriously. My last post on this topic here.

Thorsten

I agree with Thorsten. Besides what was mentioned, I also find it difficult to speculate on salary increases and to ignore increased costs.

Why do you 3 actually need 200 m²? Who is supposed to keep it all clean? A cleaning lady probably isn’t included in the calculation.