New single-family house 140 - Is it financially feasible like this?

Hello dear ones,

we also need your opinion on the planned construction project of a single-family house, as it is quite a huge amount.

General information about you:

[*]How old are you? M:32 and F: 27
[*]Are there children? no
[*]Are children planned? yes 2 children in the next 1-3 years
[*]What do you do professionally? M: self-employed F: permanently employed in IT sector (IG Metall)
[*]How many hours do you work? M: 50h F: 40h

Income and asset situation:

[*]What income do you have (gross/net)? M: 3800€ M: 2950€ + Christmas and holiday pay (BAV already deducted)
[*]How much equity do you have? 100,000
[*]How much of this equity do you want to invest in the house project? 100,000 (since about 30,000€ will still be saved until construction)

Expense situation:

Housing costs:

[*]current cold rent 650€
[*]current warm rent 845€
[*]electricity + water included in rent
[*]garbage fees 9€
[*]telephone, internet, mobile 80€

Mobility costs:

[*]car loan (or savings rate for new car) both cars paid off and relatively new (2 years and 5 years)
[*]insurance 120€
[*]taxes 13€
[*]fuel 300€
[*]repairs 50€

Insurance costs:

[*]private health insurance 450€
[*]liability insurance 0€ (co-insured as managing director)
[*]pension insurance (also Riester, Rürup, etc...) 330€
[*]accident insurance 44€
[*]household insurance 19€
[*]legal expenses insurance 0€ (co-insured as managing director)

Living expenses:

[*]groceries + drugstore 600€
[*]club fees / gym / streaming 140€
[*]leisure: 250€
[*]miscellaneous 300€

Savings contributions:

[*]holiday 200€
[*]miscellaneous about 3000€ (left over each month, currently even more)

Income and expense totals:

[*]total income approx. 6800€
[*]total expenses approx. 3800€
[*]balance approx. 3000€
[*]of which sum of cold rent and dispensable savings contributions (e.g. savings rate for house) 3650

General information about the property:

[*]How large is the plot? 570 sqm
[*]What is the standard land value? 95€/sqm
[*]New building, old building (year built), house type? new build single-family house Kfw 40+ with basement without slope location
[*]Garages? double garage
[*]How big is the house? (living area / usable area) about 140 sqm + basement

Construction or purchase costs:

[*]land costs incl. development and KNF: approx. 61,000€
[*]additional construction costs incl. notary, earthworks, connections and fees 65,000€
[*]outdoor facilities material 15,000€

other costs:

[*]kitchen costs 15,000€
[*]furniture, lamps, decoration, miscellaneous 14,000€

Cost summary:

[*]total costs 610,000€
[*]deductible equity 100,000€
[*]financing amount 510,000€
[*]savings potential through EL: approx. 15,000€ not yet considered

Thank you in advance!

Best regards

You work 50h / week? Almost exactly like me. In the first half of the year, I did over 100 overtime hours on a 42.5h/week contract. Whereas the overtime hours are not included in the financing. How long do you want to do this, especially when there are children?

Otherwise, I find everything very safe and trouble-free.

No, she works 40h/week as an employee. The self-employed partner works 50h. It doesn't look so bad at first. How long has the self-employment existed and how stable is the surplus?

We also need your opinion on the planned construction project of a single-family house, as it is quite an insane amount.

What opinion? You have almost €7k net monthly income and you are worried about a mini financing (in relation to your income)? We are talking about maybe a €1,500 installment.
Do you mean that the remaining €5.5k is not enough to live on? Of course, it will get a bit tighter when children come. But I would like to have those worries ;)

as it is quite an insane amount.

Have you ever thought on the other hand about what an incredible asset you will then have? A house worth €600k belongs to you!!! The debts against it are directly balanced again. So you are not even highly indebted, but rather have a surplus in assets.

I know, at your age and without experience, that is quite something for your gut feeling. But if you try to switch off your gut and don’t just look at the debts, you quickly realize that absolutely nothing changes in your current situation. At least not financially. Of course, in terms of quality of life, quite drastically.

P.S. I have it easy to say, since we regularly finance real estate that has at least two more zeros on the price. But in the end, it’s all the same.

You work 50 hours a week? Almost exactly like me. In the first half of the year, with a contract of 42.5 hours/week, I worked over 100 overtime hours. Although the overtime is not included in the pay. How long do you want to do that, especially when there are children? Otherwise, I find everything very secure and trouble-free.

My husband works that much indeed, since he is self-employed :)

No, she works 40 hours/week as an employee. The self-employed partner does the 50 hours. It doesn't look so bad at first. How long has the self-employment existed and how stable is the surplus?

I mean him. Or is the child supposed to know the father only from photos? The man is self-employed. Then the loan becomes more interesting :-)