Is the construction project feasible? - What is your opinion?

Hello building friends,

I have been quietly following along for some time now, and meanwhile my wife and I have reached the point where we would like to build with a local construction company ourselves. Although we have already followed some calculation examples and scenarios of other people in the forum, we repeatedly lack the transferability to our own situation.
I would therefore be very interested in your opinions on our situation.

General information about you:

[*]Who are you: Married couple, recently married.
[*]How old are you: 31 (m) / 29 (f)
[*]Are there children: No
[*]Are children planned: Yes, 1-2 possibly starting next year
[*]What do you do professionally: Teacher (m), employed teacher in the public sector (f)
[*]Are you employed, self-employed...: Civil servant, employee
[*]How many hours do you work: Both full-time

Income and asset situation:

[*]What income do you have (gross/net)? Net we have about €3400 (m) and about €2250 (f) (both career starters and thus at the beginning of the experience levels)
[*]How much child benefit do you receive? None, with civil servant status +€84 per child
[*]Other transfer payments like parental allowance, sickness benefits, etc...? No
[*]How much equity do you have? About €50,000 (since both have only been finished for 1 1/2 years)
[*]How much equity do you want to invest in the house project? As much as necessary to get a good interest rate and as little as possible to have a buffer
[*]Current savings rate: About €2500

Expenditure situation:
In shortened form: €531 (m) and €203 (f) as well as €1112 for joint expenses (rent, electricity, food, TV, etc.). Thus, we have a total fixed monthly cost of €1847, whereby really all fixed monthly expenses (insurances, food, car, job ticket, travel expenses, mobile phone, rent, etc.) are covered. The cold rent is about €575.

General information about the property:

[*]How large is the plot? About 450 sqm
[*]How high is the land value? 170
[*]New building, old building (year of construction), house type? New building with a local construction company
[*]How large is the house? (living area / usable area): About 140 -150 sqm (5 rooms)
[*]

Construction or purchase costs:

[*]Land costs: approx. €114,000
[*]Development costs: Already fully developed
[*]Acquisition incidental costs (notary, court, property transfer tax, broker): About €10,000 (without broker, as private)
[*]Construction or purchase costs (incl. architect, structural engineer): About €2,000 per sqm (according to statements of the construction company)
[*]Additional construction costs (e.g. house connections, soil expert, construction power, etc.): About €37,000
[*]Outdoor facilities/terrace, paths, garden design, fences etc... €16,000 + garage €12,000 (according to the construction company)
[*]Total costs: About €500,000

Cost summary:

[*]Total costs: About €500,000
[*]Deductible equity: About €50,000
[*]Financing amount: About €450,000

Necessary loan details:
The current offer (I will still obtain more, also with different terms) consists of several components (bullet loan, home savings contract) and would be a full repayment with bullet maturity

[*]Monthly rate: €1,630 (approx. 31 years)
[*]Special repayments possible? 5%

We consider the €1,630 – for our financial situation – to be borderline and are wondering whether this is feasible for our financial situation at all? In the town, approximately €360 in additional costs/insurances must be expected.
The plot would also have a certain emotional value for us since it is within walking distance to our parents/in-laws. The plots in this new development area are extremely difficult to obtain, as it is "the location" in town and therefore popular. Accordingly, I have considered whether it might make sense to acquire only the plot and pay it off (about 2 1/2 to 3 years). However, it is questionable whether the expected higher construction costs, rents (a new apartment with a higher rent would be due in about 1 1/2 years) would mostly consume the additionally saved capital.

Thank you for your opinions.
Best regards

The calculation seems realistic. It might even get a bit more expensive because the 20k kitchen is still missing, larger tiles or other things might be added to the list. The planning is still rather at the beginning.

I think the income easily allows for a monthly payment of this amount. If you now save €2500, plus €575 cold rent, then that’s totally doable!

Will the employed teacher still be made a civil servant?

Will the employed teacher still be appointed as a civil servant?

Unfortunately, my wife has no chance of becoming a civil servant because her field of specialization does not allow it. She will probably remain an employee in the public service. Yes, we are actually still at the beginning. However, we now have the opportunity for a plot of land, which is why we are under some pressure. Actually, we wanted to enter the market next year - with more equity.

You should break a situation with 1-3 children. Surely your wife will work part-time (?). Then underline and see if you want to afford a pure rate over €1,600... with additional costs we are over €2,000 with a full-time income of €5,200. Is there still room for your income to increase for both of you?

You should break through a situation with 1-3 children.

We did that... With a child on parental leave approx. €5200 With a child and 50% (f) approx. €5250 With two children and parental leave approx. €5300 There remain therefore always approx. €1500 (1 child) to €900 (2 children) minus all costs left over, if I calculate one child flat rate with approx. €500 monthly. But I have already included my higher wage level with the second child. Regarding income we are still at the first experience levels. Salary increases are contractually set for us every 3-4 years. Due to pregnancy/parental leave, my wife is of course set back before she reaches the next level.

yes, just do it.
Civil servant and teacher, that always fits, as long as the wishes don’t explode.