Our dream of the house! How big can the dream be?

Hello first of all! I/We will probably be more active here from now on and our goal is not only to get help but also to try to provide assistance wherever possible.

But today we need help first!

The question is: How much can we borrow?
First of all, we have of course already been to the bank and made an inquiry. But we would also like to hear something independent.

Current income:
Man: Employee/permanent contract Net 1750 (in 10 years approx. 2100)
Woman: Teacher Net 1900 with potential to increase through civil servant status

That means: Monthly net income of €3650 at the start of construction in spring 2016

Equity is a 527m building plot purchased from the city for €52,000. (However, in the next 24 months, €500 per month must be paid back as a loan within the family)

Our wish is to borrow 270K for the house.
The 270K should be enough to move in directly (including kitchen and some interior furnishings)
We also want to contribute some work ourselves (dad is an electrician and will do the electrical work and we want to organize jobs like roofing ourselves, partly also laying floors in self-performance)

Do you think this would be doable?
And which type of financing would be suitable?

Hello Scratchi,

welcome to the forum.

First of all, you should answer a few more questions so that we can help you and be a bit more specific:
1. Do I understand correctly that the property belongs to you, but was purchased with a "family loan" and you therefore pay 500 € per month to the family? So, does it count as equity? Will the payment end when you want to start building the house?
2. What are your current monthly expenses? So everything included, also insurances that only occur once a year, car costs, vacation... calculated monthly?
3. How high is your cold rent? What can you save on the side, in addition to the 500 €?
4. Do you have any additional equity?

I agree with emer’s question.
What kind of house is it supposed to be? How big? Where do you want to build? Are you sure that 270 k will be enough including additional building costs, exterior work, special requests... or is there additional budget?

And an important question (once again :)):
What about family planning? Children desired/planned/already there? Will your wife go back to work immediately after parental leave, if yes, part-/full-time, childcare secured, etc.?

Maybe you can say something about that.

>>>@f-pNo: We crossed paths again. :-)

Hello,

No basement, as the property is located in an area with a low groundwater table.

Where is the property located?

Rhineland greetings

>>>@f-pNo: We crossed paths again. :)

I guess the lunch break phenomenon ;).

Wrong guess! For me, it's more the "parental leave and child's midday nap phenomenon" ;-)

Wrong guess! For me, it's more the "parental leave and children's afternoon nap phenomenon" ;-)

OK - I definitely would have guessed that second :D.