Is our new building realistically financeable?

For example, I wasn’t aware at 30 that the amount stated in the pension notice is still taxable and that health insurance is deducted from it. At that age, you just don’t deal with it, and if you previously earned 3-4 times more and then, after all deductions, there’s just about 1xxx €, I want to see how anyone can pay off a house with that. Possibly, one wants or has to retire earlier, so there’s still a double-digit reduction, and then you might as well live in a rented apartment without a balcony.

All the more important is to be done a few years before retirement to build up an additional cushion to enjoy the work-free time in retirement.

Well... everyone should be able to do this amount of thinking:

- Do I definitely want to live in the house until the end of my life?
- Is my pension enough for the installments + additional costs?
- Do I even want to work full-time until 67?

Well... everyone should be able to bring that much thinking power:

Unfortunately not. Several people have already presented financing concepts here that don't manage that. The low interest rates tempt you to overextend yourself and the financing sellers like to make the numbers look better ("with 1% repayment only 900€ per month"). The only problem is that you absolutely won't be finished by retirement with that. But that has always been the case. Currently, there are various houses from the 70s on the market where the owners only had the money for the loan but never for reserves.

Well... everyone should be able to think this much:

- do I absolutely want to live in this house until the end of my life?
- is my pension enough for the installments + additional costs?
- do I even want to work full time until 67?

That has nothing to do with thinking effort. The topic is so far away at 30 that the notices haven’t even been opened anymore.

Retiring earlier or paying off the house in time is a financial aspect; another aspect is health and children, which again leads back to the financial side.

If you earn less, you have to pay off longer or just until retirement and simply cannot retire earlier. If you become a parent only at 40, you will also have to work longer because of the children to support them as best as possible.

I myself am 39 and at the moment the plan is to have the house paid off in 12 years. After that, the children will be supported and provision made for retirement at 60. All under the condition that one’s own little world remains intact.

If you only become a parent at 40, you will also work longer because of the children to support them as best as possible.

Sorry, but when I read something like this..

"To support the children as best as possible"..

No sorry, I will not work longer so that my child is better supported financially.

My husband and I have earned everything ourselves and are very proud of it, zero inheritance or gifts.. and I wish the same for my daughter.

And now shame on me :D

Yes, we can and have reserved a plot with the municipality for 3 months and have made initial appointments with the bank, financial advisors, and construction companies for solid and turnkey buildings. (I also had a question in the forum regarding construction company experience/recommendations - replied). Now we are in the discussion phase, which is why I started the thread.

I think we would both be okay with selling the house if it becomes financially unfeasible in the future or somehow does not fit into the overall life situation. The house should be paid off or alternatively sold at the latest by retirement.

But I wonder if this attitude is a reason for or against building a house :)

“To best support the children”..

No sorry, I will not work longer so that my child is better financially supported.

Let the child go to university first. University cities are all expensive. €400 for a shared apartment room are completely normal here and almost cheap. Add living expenses, bus ticket and you easily have a €800 burden per month for the child. Minus child benefits, let’s say €600. Without financing any luxury. And if you think there is Bafög for that, then I have to disappoint you. First, it is absolutely not enough, second, it gets mercilessly reduced if the parents have the typical income of a homeowner. And third, you get into conflict if you meant well back then and set up a building savings contract/etc for the child, which now unfortunately exceeds the asset limit. And if you have the child at 40 and they study until 25… then forget about retiring at 63 ;)

But I wonder whether this attitude is a reason for or against building a house :)

Depends. Building a house is a lot of work. Just to understand enough to be able to classify the offers from construction companies it easily takes a month in which you deal with house building almost every evening. And we’re not even in the construction phase yet. Renting is certainly less stressful and you can also get good returns elsewhere on your money. Buying an existing property can also be less stressful than building since you have to decide less. And the costs, at least with renovated or younger properties, are also easier to calculate.
But ultimately it’s a personal decision, building certainly offers the greatest freedom