New Single-Family House Construction - Feasibility Assessment

Hello everyone,

We would like to hear your opinion on the feasibility of our construction project for a single-family house.
One note: it is planned that certain personal contributions (electrical work, painting, flooring, etc.) will be carried out, but these are not included in the calculation and are somewhat of a buffer.

We look forward to your comments and assessments.

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General information about you:

[*
Who are you? He, 26, She, 25, unmarried,
[*]How old are you? He, 26, She, 25
[*]Do you have children? No children
[*]Are children planned? Yes, 2 children in =>4 years
[*]What do you do for a living?
[LIST]
[*]He, employed, engineer
[*]She, office clerk, from summer '22 district inspector candidate (i.e. a dual study program over 3 years, during this time civil servant on revocation in the higher service)


[*]Are you employed, self-employed, retired, housewife, househusband, etc.? Currently both employed, from summer '22 she will be a civil servant on revocation
[*]How many hours do you work? Both 40h

Income and asset situation:

[*
What income do you have (gross/net)?
[LIST]
[*]He: 77k annual gross --> €3650 net per month
[*]She: currently 38k annual gross --> €2000 net per month
[LIST]
[*]from summer '22: €1300 net (as candidate)
[*]from 2025: ~ €2400 net minus ~ €300 private health insurance

[*

How much child benefit do you receive? -
[*]Other transfer payments such as parental allowance, sickness benefit, etc.? -
[*]How much equity do you have? He: ~170k (large parts of it in stocks), She: ~60k, gifts from parents ~50k --> 280k
[*]How much equity do you want to invest in the house project? ~min. 200k

Expense situation:

Housing costs: ~€600 per month

[*]current cold rent: €400
[*]current warm rent: €490
[*]electricity: €35
[*]gas: -
[*]water, sewage, waste fees, street cleaning: -
[*]telephone, internet, mobile: €35
[*]broadcasting fee: €18

Mobility costs (for his car): €2790 per year --> €232.50 per month

[*]car loan (or saving rate for new car): €1200 p.a.
[*]insurance: €300 p.a.
[*]taxes: €190 p.a.
[*]fuel: €600 p.a.
[*]repairs €500 p.a.
[*]other

Mobility costs (for her car): €4240 per year --> €353 per month

[*]car loan (or saving rate for new car): €2000 p.a., sufficient reserves for new purchase available
[*]insurance: €350 p.a.
[*]taxes: €190 p.a.
[*]fuel: €1200 p.a.
[*]repairs: €500 p.a.
[*]other

Insurance costs: €200 per month

[*]private health insurance (including supplementary health insurance, daily sickness allowance etc.): -
[*]liability insurance (including pets): €20
[*]disability insurance: €130 per month for both
[*]other insurances: €50

Living costs: €1270 per month

[*]groceries: €500 per month
[*]restaurants: €100 per month
[*]personal care/pharmacy: €50 per month
[*]clothing: €150 per month
[*]furniture: €50 per month
[*]vacation: €150 per month
[*]club memberships/gym: €120 per month
[*]fun and leisure: €150

Savings contributions: His saving rate: €2100 per month, Her saving rate: €9000 per month, her saving rate from summer '22: €200 per month

[*]vacation: already included in living costs
[*]house
[*]retirement provision
[*]hobbies/gifts
[*]other

Other expenses: -

[*]maintenance payments?
[*]loans?
[*]other?
[*]Was anything forgotten? Then please specify here at the latest!

Income and expense totals:

[*]total income: currently €5650, from summer '22: €4850, from summer '25: €5650
[*]total expenses: €2655
[*]balance: currently: €3000, from summer '22: €2155, from summer '25: €3000
[*]of which total cold rent and non-essential savings (e.g. saving rate for house): €400

General information about the property:

[*]How large is the plot? 600 sqm
[*]What are its dimensions?
[*]What is the standard land value? €170/sqm
[*]New building, old building (year built), house type? New single-family house
[*]Garages? Still open
[*]How large is the house? (living area / usable area): planned 140 sqm
[*]What market value do the land and house have after completion? €700,000 (?)

Construction or purchase costs:

[*]land costs: ~€120,000
[*]development costs
[*]incidental acquisition costs (notary, court, real estate transfer tax, broker)
[*]construction or purchase costs (including architect, structural engineer): €420,000 (€3000 per sqm) + €80,000 basement
[*]renovation and/or refurbishment costs
[*]additional construction costs (e.g. house connections, soil surveyor, construction power, etc.): €45,000
[*]garage: €30,000
[*]outdoor facilities/terrace, paths, garden design, fences etc.: €25,000
[*]financing costs (e.g. fees or commitment interest)
[*]total costs: ~€730,000

Other costs:

[*]kitchen costs: €20,000

Cost summary:

[*]total costs: €750,000
[*]deductible equity: €200,000 - €250,000
[*]financing amount: €500,000 - €550,000 (depending on equity contribution)

Necessary loan details: (initial estimate from house bank, not an official offer)

[*]loan amount: €500,000
[*]loan type: annuity loan
[*]interest rate: 1.7%
[*]fixed interest period: 15 years
[*]remaining debt at end of fixed interest period: €243,915
[*]fictitious total term until full repayment: 26 years
[*]initial repayment rate: 3%
[*]monthly installment: €1950 per month

You are young and have really good equity for your age. With a net household income of €5500, there is definitely something possible. €750k all-in should actually be enough. At first glance, I don't see any problems.

Also remember that the stocks probably have a larger profit portion that needs to be taxed. Furthermore, I would sell them at the moment it becomes clear that they will be used as equity. Do not hold onto them and speculate on further appreciation.

If the numbers are correct in connection with your young age, I see no reason not to implement this project.

However, I believe that the numbers shown here regarding equity are made up and that this is therefore a troll post. He is 26 with equity of 170,000, which is obviously not a gift but a stock portfolio. Come on. Engineer and before that studies, how is that supposed to work time-wise.

A "rough skim" of your really detailed explanation is enough.

And yes - totally doable! You can handle it very well!

If the numbers are correct in connection with your young age, I see no reason not to implement this project.

However, I believe that the numbers shown here regarding equity are made up and that this is therefore a troll post. He is 26 with equity of 170,000, which is obviously not a gift but a stock portfolio. Come on. Engineer and before that studies – how is that supposed to work timewise.

Thank you for your comment. No, the numbers are not made up. The €170,000 equity is made up of €70k equity (supposed to be used with the parents’ €50k gift for purchasing the land) and €100,000 invested in ETFs. I have saved this amount over the past years. Through a dual study program and subsequent part-time Master’s degree, capital was built up since the age of 18. Also, there are some gifts from parents and relatives included here, which have accumulated over the years.

Our concern here is a realistic assessment of our project, especially since from summer on she will only receive a civil servant trainee salary of €1,300 net.

Realistic numbers on the expense side, nice to see such a thread where the OP doesn't lie to herself. ;) I think you are calculating living costs generously, have good incomes, good savings rates, and have built up solid equity. Everything seems consistent to me. I think with the "savings rate she" you have one zero too many? Otherwise, I would be very impressed. ;) With the insurances, some more will come with property (building insurance, household contents). Also, you should be able to set aside a certain savings amount monthly for house reserves. But I think this is currently not a problem with your incomes. If it temporarily drops for her, it should still work – then maybe for 2-3 years you just have to tighten your belt a bit. Overall, it looks solid to me.