Missing costs or the real opportunity of financing

Hello,

after reading some topics here, we would like to present you our current considerations and hope for suggestions or criticism.

After various house viewings (existing properties - Siegen area +20/30 km), we have now also approached a company for house construction (Town & Country) and have already received an approximate price indication.
This is still imprecise, as no definite plot of land is available.
Interesting for us because houses from the 1980s with renovation backlog often start at 300,000, rarely below.

Our data:
He: 1800 net (27) + 13th salary, vacation pay x2
She: 1450 net (22) vacation pay x2
Total: 3250

Current expenses: 2322 (includes cold rent 415 + 100 euros utilities), car loan for 2 years 309 euros and leasing 110 euros
Leftover: 928
Equity: currently 10,000

We are currently saving 700 for a possible house and the remaining money is saved for other expenses.

Our currently available sample calculation by Town & Country Siegen area:

Sample plot: 40,000 (still partly possible here with 400-500 sqm)
Notary 2.5%: 1,000
Property transfer tax 6.5%: 2,600 only on the plot, since we would otherwise buy it separately to avoid tax on the house price
Broker 3.57%: 1,428
Utility connections: 10,000
Multi-utility introduction: 1,500
House price: 214,755 (Bodensee 129 with base price 198,700) Gas boiler and solar thermal for hot water included, floor slab incl. /
[Sonderwünsche: Walkinn-Dusche 1420, Lan-Anschluss pro Raum 1050, Dachuntersicht farbig 1370, Außensteckdose 180, Sonderfarbe Fenster+Haustür, Rollläden gesamt 2150, Seitenteil Haustür 1250, Schneelastpaket 1590]
Additional foundation: 7,000
Earth removal + filling: 10,000
Construction water + electricity: 1,500
DIY interior: 7,000 Material + labor 10,000
DIY exterior: 10,000 Material + 10,000 labor
Surveying + fees: 3,500
Sampling buffer: 5,000
Construction period interest: 3,351
Mortgage deed costs: 2,032

Total = 340,666
Less equity 15,000
Less DIY work: 20,000

Financing requirement: 305,666

Due to equity plus DIY work (is this even valuably recognized? - according to Town & Country yes) a 90% financing would be given here and the interest rates according to "FMH" at: (as of 21.11)

approx. 1.60% for 30 years full repayment - 1060 rate per month
approx. 1.20% for 20 years with 166,000 residual debt - 826 rate per month
approx. 1.59% for 30 years with 71,000 residual debt - 907 per month

These approximate values were also calculated for us at Town & Country a few days ago.

Our question to you now is whether this seems like a realistic scenario or which costs might still arise for the construction and have not yet been listed.
We are not in a hurry to build/purchase but would like to estimate the approximate saving time or also the statement that it would not be possible with the salary.
Two children are planned, but they still have 3-5 years time.

If various data are missing, we can gladly submit them.

Thank you in advance!

I don't want to be the pain in the ass telling you that you currently earn too little to build a house no matter the price range. But to make you understand... Just the monthly additional house costs, meaning what you pay besides the installment and interest for electricity, gas, water, sewage, insurance, fees, and taxes, are as high as your cold rent. And that will generally keep increasing. The financial situation will further change/worsen with children, as part of the salary will be lost and costs naturally rise.

There is nothing to discuss or sugarcoat about that, especially since building a house is going to be more expensive anyway and some cost items are missing. You are still making your loan amount look good and deducting urgently needed budget because you are fictitiously calculating €20k. You only do that when you expect a lower interest rate, not to deliberately put yourself in financial trouble. Mainly, it is due to low income and lack of equity. Unfortunately, saving won’t help you either because building a house gets more expensive annually than your annual savings rate.

The only solution is a job change for both of you. From a monthly income of €4k with a desire to have children in 5-10 years and more equity, you can possibly start such a project.

I have to agree with my predecessor.

The 40-50,000 for a plot of land sounds very inexpensive. Please check the information again.

I worked in Siegen for a while. Due to the terrain conditions / slopes etc., you won’t be able to manage with the budget there.

I also remember the "Siegerländer Oberboden"... Once swept over the soil with a broom, and you hit rock ;)

Conclusion:
Too little financial resources
No plot of land in sight
Lack of expertise to compensate for missing equity through meaningful EL

The way you write, no salary increases are to be expected at your place, right? If so, I could at most imagine buying a cheap piece of land without a building obligation (but only if cheap does not mean complicated). And then saving, saving, saving. And working on the salary.

Hello you are still young, have a very low rent and have only just started saving (14 months). Currently, building a house is out of the question, it exceeds your financial capabilities. Additionally, you are full of loans and leasing.

Agree with the others. First work off your current loans. Possibly buy a plot of land without a building obligation and make sure your salaries increase. Then you can consider building.