Is the construction project feasible and realistic?

Hello everyone,

we currently live in Berlin renting, but are now considering buying a plot of land in Brandenburg and building a house.

We are still unsure whether the project is feasible and wanted to get some opinions from the community. We have an appointment for "professional" advice next week.

Here are the details:

Unmarried couple (29 and 28) + 1 child (2 years)

Current financial situation (monthly)

Income = €5,000 net
Savings = €900 net
Expenses = €3,300 (including €1,300 warm rent, hobbies, insurance, car, shopping, etc.)
Surplus at the end of the month = €850 (available for discretionary spending)
Equity = €40,000

Our construction project

Plot = €150,000
House = €200,000 (€1,300 * 150 sqm realistic?)
Additional construction costs = €50,000 (realistic?)

As you can see, we are calculating with around €400,000 total, while we can currently only provide €40,000 in equity. We are quite sure about the plot price, but not about the house. (whether it might be cheaper or not)

Do you think our plan is realistic? We are currently facing the situation that plot prices are getting more expensive month by month in our selected area. (1.5 years ago the price per sqm was 180, now it is 300)

We look forward to constructive feedback. And please be considerate, we are complete beginners in this area.

Best regards

Expenses = €3,300 (incl. €1,300 warm rent, hobbies, insurance, car, shopping, etc.)

To answer this question, it would be interesting to know the exact breakdown of the expenses. €2,000 monthly already sounds very thoughtless and indulgent.

Land = €150,000 House = €200,000 (€1,300 * 150sqm realistic?) Additional construction costs = €50,000 (realistic?)

Not realistic. €2,000/sqm... can be read very often here. Outdoor facilities also add €20,000 on top. Painting, flooring come on top as well. And yes, if you pull together or are very frugal, €1,800/sqm is also enough, but you don't calculate with that – especially because you calculate today, but build tomorrow.

House = €200,000 (1,300€ * 150sqm realistic?)

Unfortunately not realistic. What wall construction do you want: solid, e.g. aerated concrete, Poroton, prefabricated house, timber frame? Shell construction or turnkey?

Thank you for your quick responses.

Regarding the expenses: Here you will find among others shopping 600€, car loan 180€, lunch at work 120€, disability/liability/household insurance, etc., clothing and hobbies 300, electricity+gas+internet+waste bins 180€, mobile phone 50, subscriptions like Sky, Netflix, etc. 50€, tickets for local transport 120€.

Surprisingly, it adds up quite a bit, although within the next year the car loan and some subscriptions will disappear.

Unfortunately, we have not had a detailed consultation yet, which is why we have not yet decided on massive or prefabricated. It should definitely be ready to move in.

That means we should rather calculate with 300,000€ for the costs of the house?

Thank you!

The costs for the house are calculated too low. You should plan sufficient buffers, and those would definitely not be included in 200k for 150sqm. For comparison: we are also planning 150sqm and excluding the land, we are at about 300k, and that is "standard" regarding equipment in the bathroom, for example, and the kitchen is additional.

How high is the remaining car loan? More children planned? Resulting income reduction?