My wife and I are considering building a house

Hi,

at the moment we can easily put aside 500 € per month. The electricity costs are so high because we heat our water with electricity.
The cold rent is 455 €.

On 21.05 I have an appointment with LBS. Let's see what they say.

We come from Münster. Two weeks ago, plots of land in Münster-Sprakel were advertised by the city of Münster. The prices for approximately 400 sqm are 50,000 €. Only semi-detached houses are allowed to be built.

I also have the option to receive a promotional loan. The maximum possible amount is 108,000 €.
The rest, minus equity, I would have to take from the bank.

I will let you know on 21.05 what LBS says.

Regards

The fact that your wife works part-time is not planned? That would ease the financial situation. For a construction, you have to expect around 200k upwards. This means purely for the loan more than €1000 rate, which means half of the monthly income. Whether a bank will cooperate, I doubt that.

My wife wants to or will start working part-time again. But not at the moment, as the child is still too young (2 months). That would indeed make it easier.

As mentioned, I will know more on 21.05. and will give feedback.

Regards and thanks for your honest opinion.

OK, but then you are currently also receiving [Elterngeld]? Or is it included in your salary?

We currently receive 300 € parental allowance for 12 months. I have not taken that into account in my salary.

Currently, we spend about €250-€300 per month on groceries, diapers, etc.
Then we have €1,279.83 - €300 = €979.83 left.

I hope the information helps.

Regards

And here I would advise quickly removing the child benefit again. It is spent very quickly - in the interest of the child - and therefore should not be included in a financing situation.
It fits for a new build with and without it - maybe a nice condominium and then take another look in 10 years
Additional costs like building insurance, higher household insurance, reserves are also still an issue