Land available - ancillary construction costs, ancillary house costs, financing?

Buy the plot with equity. Then calmly look for a partner. Are all the construction-technical questions clarified? Sounds like a spontaneous purchase.

Spontaneous in the sense that we didn’t expect to ever get a chance. You know how it is. We have been looking for several years and kept getting outbid when it came to auctions or when people just wanted to make a profit or when the plot wasn’t even big enough for a doghouse. We usually like to be prepared, but we don’t have a house ready (we had also looked at existing properties before, etc.). That’s why we haven’t dealt with variable loans yet or made a detailed plan. We only made a loan inquiry two years ago and did not get the house.

You say to use equity for the plot. But you only get the construction loan on the house amount, don’t you? Otherwise, we build and then have no money left for a carport, etc.?

You tell the broker what you want to build, for example house, carport, ancillary construction costs and garden. Then your property is counted as equity and you see what you can finance. Then you save up equity again until you are ready for house construction. The advisor can explain to you exactly how this is best handled.

You say to use equity for the land. But you only get the construction loan on the house amount, right? Otherwise, we are building and have no more money left for the carport, etc.?

You (and the bank) look at the overall project. Purchase price of the land including additional costs: €120k Construction costs: €400k Construction incidental costs: €50k Kitchen: €10k Carport: €10k = total €590k = use of funds Source of funds is Equity €110k (or €120k if, for example, you get the remainder paid in a year) Bank loan: €480k (or €470k) Of course, you can also tell the bank that you only want to use €90k equity, the rest is reserve. So equity €90k and debt capital €500k. The bank would then first pay out €20-30k to you.

In short: You are in the wrong subforum. Go to the construction costs section; there you will find the answer to almost every one of your questions.
Warning: Do not directly transfer costs from 2018 to those of 2021.

With reasonable and comprehensible calculation, you will also get financing for later house-building relevant equipment such as outdoor facilities and carport/shed.
Equity that goes into the property is also counted again as equity for financing.
Set aside 20,000 for kitchen, lamps, and mailbox.

I think you first want some security and to ask around whether this project is even feasible.

Furthermore, you probably want information on how you should/must/can proceed in the next few weeks in order to secure the plot as quickly as possible and not forget anything important.

I can take away your fear and give you the (I think most important for you) information:

- Your income with 2 children is good and your equity is also good --> with that, you can definitely fulfill the dream of a single-family house

- With €1,800 you can roughly manage the loan amount - of course, it depends on how much equity you want to use --> we have slightly higher costs for our overall project and even significantly less equity and a repayment rate of €1,600-1,700 - of course, it also depends on the term - it depends on how long you want to pay off. Nevertheless, still realistic!

- Consider carefully whether you want to pay for the building plot directly from equity. Definitely sensible, but you should also calculate enough buffer and always have some money set aside, since you also want to do things like the carport (possibly also the outdoor facilities?) afterwards. With children, you should always keep some equity aside. I would actually recommend financing the plot variably and then calmly looking around for a builder. The interest rates for variable loans are currently very good and so you will also be flexible in financing the overall project - you can then look around again and possibly do everything with another bank. I would then pay the incidental construction costs from equity and take out a loan for the rest.

- 160m² is initially not really meaningful... Are you planning with a basement? What exactly are your ideas? KfW 40 house? KfW 55 house? Prefabricated house/masonry? Ventilation system? Photovoltaics, etc... These are some points that can drive the house costs up. For €300,000 you really don’t get anything "great," or really only the "minimum" - I even suspect that you won’t get a 160m² house anywhere for this. I would definitely set a minimum of €350,000-400,000! The incidental construction costs then amount to about €50,000.

I would definitely plan the construction costs with a buffer. 10k for a kitchen is really not much...

Unfortunately, that's true. We have been to the kitchen studio in the last few days. It won't be anything under 15k. Since that seems way too expensive to us (kitchen studios are like the general contractors with glossy catalogs and show homes -> everything is reflected in the price), we will have our kitchen "tailor-made" in Poland (we both speak Polish). There you are very well off with 10k€. With 15k€ you have a dream kitchen.