Land now - house construction next year

The total price (detached single-family house KFW70 with 145 sqm living space and basement + 500 sqm plot) is about €300,000.

NEVER!

I’ll try to break it down a bit more clearly:
A basement alone costs a minimum of €30,000 but can easily cost €60,000.
A house with 140 sqm costs easily €1,400 per sqm, so almost €200,000.
And even then, some items are still missing such as: outdoor landscaping, all ancillary building costs (about €20,000–40,000), garage, base plaster.

That house connections are included, I have never read or been offered. You always pay those to the gas/water/electricity provider (total costs around €10,000).

What always costs extra if you want a special heating system are heat pumps, ventilation systems, stove, floor plan changes... that all costs money... an extra window in a prefab house easily costs a €1,000, an extra power outlet €50... that quickly adds up massively to a considerable sum.

Regarding financing: with €3,000 net income and no equity, you will not get €300,000 from the bank. If you are lucky and get a good offer, you will get about €250,000 for €1,000 per month. (Our financial situation is considerably better, and we got €250,000 at 3.4% effective interest over 20 years. Best of nearly 10 offers, just as a reference for you. Don’t trust the advertising... those are all optimized examples.)

Moreover, you should have an additional €20,000 in cash during the construction. You can’t get every amount immediately from the bank (payment in €5,000 increments, max 8 installments free with us). And you will have to pay many small bills on the side... €500 here, €1,000 there...

At first, we also planned to manage with €300,000 WITHOUT a basement. Well, now we are at almost €400,000 if we include things like new furniture, wallpaper and kitchen, garage, and garden.

My tip for you (worked wonders for us): ask your parents, no shame. Maybe they still have something saved up that they want to gift you tax-free. There are gift tax allowances... get informed precisely!!! Because if you inherit the same money, the state takes 15–30% inheritance tax. Our relatives were glad to finally get rid of the money that was shrinking on their accounts anyway.
Pay attention to possible siblings and very thorough documentation of the gifts. If it can’t be done otherwise, do it through a notary. This prevents disputes when inheriting.

One more thing: it’s been on my mind when I read: sale of the plot through a construction company... that is always unreliable. We have experienced the worst with such companies. Especially when building land is scarce, such companies take advantage. Google the provider and look for negative reviews. I found them for every single one.
I can recommend our provider to you via PM. Our advisor sent us home at the beginning and said: €300,000... no, go save some equity, this won’t work like that.

Because if you inherit the same money, the state takes 15-30% inheritance tax.

What kind of half-truths are these, read § 16 of the Inheritance Tax Act and then you will see how much you as a child can inherit from your parents without the state levying a tax.

Oh, I did read that, but thought it only applied to gifts. Apparently, the same tax exemptions apply to inheritance.

I apologize :)

Oh I did read that, but thought it only applied to gifts. Seems like the same tax allowances apply to inheritance.

I apologize :)

No problem, but since I have already prepared a few inheritance tax returns, I just wanted to clarify that...

Oh I did read that, but thought it only applied to gifts. Apparently, the same tax allowances apply to inheritance as well.

I apologize :)

No problem, but since I have prepared a few inheritance tax returns already, I wanted to clarify that... ;-)

@Black Shadow

I find it really difficult in general when you want to take on such a big project like building a house and honestly haven't saved a single cent yet. For me, as a bit of a safety freak, that would be absolutely impossible.
To put it in my banker’s words: Come back in a year and show what you have been able to save during that time, only then can we talk about a loan... How right she is... ;-)

Hello,

I can recommend our provider to you via PM. Our consultant sent us home at first and said: 300,000... no way, go collect some more equity, it won’t work like that.

I would also like to know that :D

Kind regards