New construction or house purchase and renovation in Bavaria

The 550,000 euros are our intended budget for the house, without having to use a financial planner. Assuming that the granny flat is reasonably possible in our construction project, then my father-in-law could potentially contribute the additional costs for it by selling his previous (not barrier-free and too large) apartment. We were already close to buying an existing property, and he would have moved in without hesitation and shared the renovation costs.

I would first do a cash check. That means: how much funds are liquid from Dad and you for the house construction (or purchase). Then have a non-binding conversation with an advisor (or house bank) about what credit would be possible. The plot is also not given for free, but the heirs have to be paid out. Often one is not even clear about what is possible or, conversely, what is not possible. After that, I would look further.

We have good savings and an additional net income of about 4,500 euros,

Your financial situation is not entirely clear to me – your husband earns nothing?! And you would have the 550,000 euros liquid? Or would that be your assumption that you have that available with credit?

The property is not given away for free either, but the heirs must be paid out.

I have not read anything about an inheritance case so far.

So far, I have not read anything about an inheritance case.

Here it is. And more…

After the conversation with my grandma, I talked with the potential heirs, i.e., with my father and my three uncles, and initially it did not seem to be a problem for any of them. However, at least one uncle seems to have underlying concerns, as he started talking with my grandma about her possible will (there isn’t one), which she did not find funny at all.

Regarding the inheritance case, my grandmother is still alive! However, after her offer, I directly asked her sons, meaning my father and his three brothers, for their blessing.

If grandma hands it over to you that easily, that’s good. But in my opinion, it won’t be completely free. (gift tax, property transfer tax, notary, land registry, development, etc.)

Gift tax should not apply, the property is probably below the exemption limit. The other points of course still apply, possibly also costs for an appraisal. There is of course the possibility that after my grandmother’s death, contrary to the statements of one or more of my uncles, the property might be claimed; then we would probably have to pay out proportional shares depending on the time since the gift.

Your financial situation is not entirely clear to me – your husband earns nothing?! And you would have the €550,000 liquid? Or would that be your assumption that you have that available through a loan?

Yes, my husband is a stay-at-home dad and yes, the 550,000 euros are assets available on short notice.

my husband is a homemaker and yes, the 550K euros are short-term available assets.

Hardly anyone here can show that much equity. Most people here take out that amount!!!
… and you have 4300€ available.

Okay, assuming you would initially get the plot as a gift (Plan B would be to buy the plot from grandma… for me, however, that is Plan A, because then you’re safe and can plan better)

What stops you from borrowing 150,000€ for under 1000€ and using your dad’s money for the granny flat to build the house?

thank you for your detailed post. Unfortunately, we do not have anyone in our family or circle of acquaintances who has built with an architect in the last twenty years. So far, I have picked out a lady in this regard,

What kind of lady – a client or an architect?

Regarding the construction companies: We live quite rurally here (Lower Bavaria), and if I look within a 20 km radius, the selection is already limited. Therefore, I first considered companies that were recommended to me by acquaintances and colleagues, even if they might be a few kilometers farther away.

Recommendations from first-degree acquaintances are valuable if they have built with the respective companies themselves – I had only feared from experience that you would have chosen the large radius to get as long a list as possible. Recommendations from distant acquaintances (friends of brothers-in-law of club members who also only went to school with one of the people working at the company) I would discard, regardless of how close they seem.