Is the dream of owning a home realistic?

Dear forum members,

after having been a silent reader for some time, I would now also like to "dare" to share our desired planning. First of all, many thanks for all the contributions (also in other threads) and for sharing your experiences!

Here are the basic data:

General information about us:
- 31/32 years old
- 1 child (3.5 years old), another planned within the next 1-2 years
- both permanently employed since 2011, both currently full-time (he: 40h, she: 35h)

Income situation:
- net 2,600 he
- net 3,500 she
- additionally Christmas, holiday bonuses for both, which we have not considered above in the net income. Salary increases for him are foreseeable in the next years but of course not included
- equity: 25k (until June this year we paid off a loan "on the side" with 550€/month and therefore could not save much - otherwise we would be at about 75k today)
- equity in gold: approx. 10k - iron reserve for bad times

Expenses:
Total housing costs 995€:
- 600 cold rent
- 820 warm rent
- 75 electricity
- 100 TV, internet, mobiles

Mobility costs:
- 580€ leasing for two cars from the employee deal
- 200€ fuel costs

Insurances: 330€ or 180€
from 11/2018, 2x private pension plans (100€ + 50€) suspended so that we can save more for the construction

Living expenses:
approx. 700€

Savings:
approx. 1500€ (overnight money, savings book, child account, building savings contract, funds)

Others:
105€ BAföG repayment until May 19

Total income: 6100
Total expenses: 4410
Balance: 1690

Of which sum cold rent and dispensable savings:
600 + 1400: 2000€

A new build is planned:
- 67k plot
- 380k prefabricated house (turnkey without painter/floor layers)
- 50k construction incidentals (generously estimated from my point of view - what do you think?)
- 15k outdoor facilities
--> 512k financing requirement

Plot incidentals (approx. 5k), kitchen, flooring and painting work would be covered from the equity.

I know building new without much equity is not such a good idea. But if we move out now and go to a larger 4-room rental apartment, we pay about 1500€ warm in the region (current figure from a listed apartment in our street). We would build new at my parents' place "in the village", about 50km from here.

For the next child, my husband would not take parental leave. I would start with 20h after one year of parental leave (I did this with the first child after 15 months of parental leave and then increased to full-time). With two children, my pain threshold would probably be 28h (approx. 2,800 net).

Good or bad idea?

What kind of financing and what monthly burden would you recommend to us? Combo contract with building savings in this case reasonable since almost no equity available?

We are quite torn back and forth. Rents have exploded in the last 4-5 years and existing properties go for too much in bidding procedures. We were in the running for a few properties and always gave up because it was not worth it to us.. We actually never wanted to build and now the plot at my parents' place in the village has come up (existing properties are also scarce there or extremely in need of renovation). Construction costs will not get cheaper if we save and wait further in the next years..

But we do not want to sugarcoat anything either. Therefore, I would be happy about honest opinions. Many thanks in advance!!

Hello, very good net income and yet poor saving. You only have leased cars. Where did the loans go, consumption? Is this €1500 saving performance no longer a provision that is then dissolved (e.g. vacation)? I see 2 problems, 1 Property will become more expensive for you, at least €1800-2000 with all additional costs. With 2 children, full-time work is also absolutely necessary. Consumption behavior must be reduced

Thank you for your feedback. Yes, unfortunately you are right.. We saved badly. But the income was of course not at the current level at the beginning either.

We had taken out the loan back then before the wedding and used it to finance everything from the wedding to every single lamp, fork, curtain, etc. for moving in together. Really stupid idea, I would never do it that way again. But unfortunately it's too late now..

We both come from not very well-off families, meaning we have handled everything ourselves since our youth (from shampoo to new shoes).. There was no saving either and after graduation we started off with a big minus..

We skipped big vacations for the last two summers and only took one smaller trip each time outside the season. I paid off my student loan for two years (there were still tuition fees when I studied), BAföG is still running and parents + part-time job (since I earn 1k more than my husband) broke our neck in between when we still had to pay the installment for the loan. But I think we recovered quickly anyway.. We have only been able to save 1500 since June this year.

We are also considering buying one of the cars, but is it really cheaper price-wise with everything included (repairs, inspections, insurance, etc.)? We would calculate that and possibly switch..

I agree with you - we probably need to watch our expenses more closely and write everything down in detail. That's why we somehow don't dare to take on the new build project. But I don't find the alternatives very appealing either.

- 380k prefabricated house (turnkey excluding painting/flooring work)

What is included in the offer? Is a good heating system already included? Are the upgrades in terms of electrical, sanitary, tiles, stairs, and so on already factored in?

The 380k includes an air-water heat pump with heat recovery and ventilation system + underfloor heating. The staircase fits so far as well. Doors, windows, tiles in price category 2 (so somewhat better than standard, but not yet luxury). Parquet + cork in the living and sleeping rooms and painting work we would do ourselves with friends. Electrical work might possibly add something, although the standard here is already quite good in my opinion. We would build with Fertighaus Weiss. They have a pretty good reputation and the standard is relatively high compared to other providers. And a basement is already included at that price. Do you find the 380 too high/too low?

Technology fits
Doors, windows, tiles fit
Parquet + cork in the living and sleeping rooms and painting work - plan materials for this, including waste. At least 10,000/15,000 (I don't have the prices and house size in mind right now) including baseboards, adhesive, etc., then you will be relaxed there.
Electrical might possibly add something - let's calculate 5,000. Two-way switches, outdoor lighting, switchable sockets here and there... SAT dish?
380 would be expensive for my standards, but that is relative