My wife and I are considering building a house

Hi,

my wife and I are considering building a house.

Our current financial situation is as follows:
Sole earner: €2,100 net (The net salary is based on 12 monthly payments.)
In addition, €184 child benefit
Total: 2,284 €

Fixed costs per month currently:
Rent: €611.50
Electricity: €104.00
DSL: €19.99
Mobile phone: €20
Car insurance: €29.45
Gasoline: €70.00
Total fixed costs: 854.94 €

Remaining for living expenses: 2284 - 854.94 = 1,429.06 €
Current equity: €25,000.

About us: We currently have one child and manage well with my salary. Once a year we take a beach holiday abroad. Otherwise, we handle our money very well.
What can we afford? Is it sustainable for me as a sole earner in the long term?

Regards

In view of the fact that a house initially drives up the fixed costs; this includes: insurance, reserves, property tax, etc.; there probably isn't much left afterwards.

The question is: How much money is available monthly after deducting ALL fixed costs?

I don't believe your mini-list above.

At least GEZ, liability insurance, reserves, vehicle tax and more are missing.

The first step to find out what one can afford is to be honest with oneself regarding one's financial situation.

Hi. Of course, you are right. Liability and household insurance, GEZ, car tax are still missing.

Liability + household: €12 monthly GEZ: €17.98 monthly (€53.94 quarterly) Car tax: €19.25 monthly (€231 annual fee diesel) Deposit into savings account: €100 monthly Total: €149.23

€1,429.06 - €149.23 = €1,279.83 to live on Currently, we spend about €250-300 per month on food, diapers, etc. Then we have €1,279.83 - €300 = €979.83 left I hope the info helps.

Regards

Hello Dad,

is right.
Think about this carefully again. Besides the above-mentioned items, there could also be: additional insurances, retirement provision, television, water (if not included in the rent), club memberships, hobbies, union fees, public transportation, etc.

How high are your actual living expenses? This includes: groceries and similar purchases, clothing, shoes, online shopping (Amazon), cinema, going out, etc.
A car also needs maintenance / technical inspection (TÜV) and such – have you already taken that into account?

Our 4-person household currently has (unfortunately) living expenses of 800 - 1000 euros (gritting teeth). We usually shop at Kaufland and don’t order huge amounts online.
It is important to know EXACTLY about your own financial situation before you want to build.
By the way, I find your electricity amount very high – ok, I am told that we are quite frugal with electricity at 59 euros per month with a 4-person household including 2 small children.

But you can also approach the matter quite differently. How much can you regularly set aside?
How high is your cold rent portion of the 611.50 euros?

Hello papa1981,

roughly estimated, you can currently finance a loan amount of EUR 100,000.00 with EUR 500.00 monthly.

This way you can roughly calculate what would be possible.

Basically, I would recommend that you schedule a consultation appointment at your local bank so they can calculate what would be feasible from the bank's perspective.

But I will be honest with you, with your income and your equity, it will probably be difficult to buy a plot of land and build a new house on it.

As I said, difficult but not necessarily impossible.

In which area do you want to build?

Regards,

Dirk

With that income, he won't be able to build a house..... at best buy an old one, better yet an apartment