Medium-term house construction project with wife and 2-3 children

Hello everyone,

my wife and I are thinking about building a house in a few years. I am 29, my wife is 25. Our son recently turned 1 year old and in August we are expecting his little brother.

I am currently the sole earner and earn just under 4000 EUR net (without bonus, about 10,000 per year), so far we also receive child benefit once and from August an additional 375 EUR parental allowance for my wife and a second child benefit. From August next year my wife will start working. We had the special case that my wife got pregnant directly after her studies and therefore will only start working full-time again next year when our second child is 1 year old and will contribute another 1500-2000 EUR net. Next year the net income will thus be around 6,000 EUR.

My wife is American, but in recent months we have decided that we want to live permanently in Germany and raise our children here. We currently live in a great location in Berlin and have an old rental contract (KM 750 EUR for 92 m2 in the most popular neighborhood right now) and also already a spot in daycare. Therefore, we basically have all the time in the world, no one is pressuring us to build a house. Still, we want to move mid-term to the Berlin outskirts near an S-Bahn station.

Currently, as the sole earner, I can save around 1500 EUR per month. By the end of the year I will have paid off all my student loans, which currently amounts to a 550 EUR monthly rate that will then be free. Apart from a 10,000 EUR reserve, we currently have no equity because everything goes towards repaying the loans. We would like to build a house before our first son starts school (so move-in in five to 5.5 years). At the latest when my wife works again, we can easily save at least 2000 EUR per month (which would already be possible once I have paid off my student loans). Conservatively calculated, we could save about 100,000 EUR in equity in 5 years, my aunt could lend us 70,000 EUR practically interest-free if we want.

We have looked at plots of land, which cost between 80-120k. We both like timber houses, especially some designs from Stommel Haus appeal to us a lot. Especially this house:



How much does something like this cost approximately? 2000 EUR per m2? We think we would want between 150-200 m2.

Sorry if all this sounds a bit unplanned, but we are still at the very beginning and would like to know if what we are imagining is realistic with our income and what we would have to work towards.

Thank you very much and best regards

No problem with your income if you keep the focus.

The best-case scenario would be IMHO: to have about 150,000 euros of equity up to two years before school enrollment, so you can buy a developer-free plot without the bank and then plan and build (and finance) the house. School enrollment party then in your own garden.

Your link to the house contains the word Schwarzwald. Please reconsider this for the Berlin surrounding area [Berliner Umland].

That sounds good so far, thank you very much.

I think we should be able to buy a plot of land without any problems during that time. So that means the land belongs to us and then we (virtually) finance the house 100% with the land as collateral? By the way, my father and I can also do a lot ourselves. He is already retired but a gifted craftsman (floors, plumbing, tiles, electrical, etc.) and has done almost everything himself on both of my parents' house construction projects. He would certainly enjoy a construction holiday, something different than playing with model trains.

I'm not quite as skilled as my dad, but I can paint, do floors, and plumbing (install sinks, etc.). Such personal contributions can be credited as equity, but to what extent approximately? 10,000EUR? 20,000EUR?

Do not rely on own performance

Count equity, approximately to what extent? 10,000 EUR? 20,000 EUR?

In my experience, with 2 children and 2 parents working full-time, it is better to calculate with 0 euros. If your father wants to work alone on your house, according to the schedule etc., then you can set 10 euros per hour. So 1600 euros per month. And you probably won't have much more time.

Berlin and the surrounding area, I see 2000/sqm and from 150sqm living space. rather as a lower limit for simple standard.... rather calculate with 2500-3000