Land purchase + house construction possible? Up to 350k equity, 3k net monthly.

On balance, you therefore have about 330,000 euros in assets. (I am not familiar with the maintenance reserve for condominiums or its effect when selling them, I don't know if that would have an impact. Prepayment penalties could also play a role. But I think the scale is correct.)

Income is about 4,100 euros/month, of which 2,800 euros must be deducted as fixed costs. That leaves 1,300 euros.

A rule of thumb is 5% annuity, with which you could borrow 1300/5%*12 = 312,000 euros. Based on your encumberable assets, you can expect a very good interest rate. With an annuity of 4%, you could already borrow 390,000 euros.

It looks to me as if the sale of the "large" condominium is necessary. For this option, the income/expenses would need to be recalculated; you would then have your own free capital (cash) from the apartment sale in addition to the possible loan amount.

The fact is that point 1 is not feasible. No bank will finance you as the sole borrower with an income of €4000 without equity for €500,000+. If anything drops out (salary, rental income), it's over. That a girlfriend (or a shared flat) pays rent does not interest any bank. Regarding the wishes (pool, sauna, etc.), I also see higher costs than €300,000, as incidental construction costs and outdoor facilities also need to be paid. Best regards in short

Hello, Mühldorf is not that far from Munich after all... I am currently a bit doubtful whether you can manage with 500,000 € all in for 170 sqm. Even without gimmicks like a sauna, etc., the "proximity" to Munich should drive up the prices... Before you continue to think about it, you should first create a cost plan including land, purchase incidental costs, furniture, kitchen, lamps, garden installations, architect's fees, development costs, etc.

Thank you at this point for the helpful answers

I would now have speculated - after selling the large condominium with a monthly rate of max. 1k EUR (in order not to disturb the one-third ratio to net income). Moreover, I still pay maintenance to my mother and an important rental income will also drop out. Operating costs also occur. At 1.50 EUR/sqm, that is also ~250 EUR per month.

We have determined 200,000 EUR land with existing building permit, fully developed 20,000 EUR land ancillary costs 230,000 EUR house basic equipment 20,000 EUR budget surcharge for sampling, which is not included in the house price 20,000 EUR construction incidental costs 35,000 EUR garden, terrace (self-built) & pool 15,000 EUR house kitchen 10,000 EUR safety for eventualities (example: soil survey resulted in a thicker floor slab)

550,000 EUR in total. With the sale of my condominium and a loan of max. 250k, the project should be realistic. I once applied the above thumb rule: 1000/5%*12 = 240k.

Based on 325k equity after successful sale of the condominium + 25k saved up until 2018 (13k still missing, of which 5k will be refunded by the tax office this year, making 8k to save yourself), we can hopefully reduce the loan to a somewhat round 200k. I don’t think I will get my share back from the condominium’s maintenance reserve upon sale. But it is empty anyway, as a new heating system was necessary two years ago and the facade was renovated last year.

A technically finished shell house is also sufficient. Many other tasks (except electrical) we can do very cheaply ourselves: laying all kinds of floors, plastering and painting, terrace construction, sanitary installation and tiling, kitchen assembly.

Ancillary construction costs should be at least doubled...

Regards, Yvonne

A 170sqm house for €230,000? Is that possible?