Planning a construction project - What is financially feasible?

Dear forum members,

we would like to have an assessment from you on the topic of house.

There is no explicit building or purchase project yet. Land prices here around 150k for 500 sqm, 15 km further about 80k.

What we wish for:

[*]about 140 sqm living space
[*]500 sqm or preferably more land
[*]double garage
[*]basement (nice but not a must)

We are not unskilled in craftsmanship and have friends/family for own work.

Planned own work:

[*]electrics (electrician master available)
[*]flooring/wall coverings (except tiles)
[*]insulation/drywall roof structure
[*]outdoor areas

Our concern is the time when we have a child. There will be parental allowance, but it may be necessary to plan a period without your income or part-time.

Therefore, we would prefer to work with special repayments instead of a high monthly rate. We are both still at the beginning of our careers, so we will regularly advance in experience levels and promotions are usual (however, we do not include these in the budget).

We have built up the equity capital in a little over two years after finishing training/studies.

General about you:

[*]How old are you?
[*]He: 26 years She: 23 years (unmarried)
[*]Are there children?
[*]No
[*]Are children planned?
[*]Yes one child/possibly two
[*]What do you do professionally?
[*]He: civil servant (A7, middle service)
[*]She: civil servant (A9, upper service)
[*]How many hours do you work?
[*]He: full-time
[*]She: full-time

Income and asset situation:

[*]What income do you have (gross/net)
[*]He: 2296 euros net
[*]She: 2466 euros net
[*]How much equity capital do you have?
[*]55,000 €
[*]Additional income
[*]He: multi-family house: 1849 euros (minus tax and reserves)

Housing costs:

[*]Rent costs: 760 euros / month (500 euros cold)
[*]Electricity: 64 euros / month
[*]Telephone, internet, mobile: 81 euros / month

Mobility costs:

[*]Insurance
[*]Car 1: 48 euros / month
Car 2: 55 euros / month
[*]Taxes:
[*]Together: about 34 euros
[*]Fuel
[*]Car 1: 170 euros
Car 2: 70 euros

Insurance costs:

[*]Private health insurance
[*]He: 238 euros / month (She: free health care)
[*]Disability insurance
[*]-
[*]Other insurances:
[*]60 euros / month
[*]Legal protection insurance
[*]Member in unions: 29 euros / month

Living costs:

[*]Daily needs
[*]about 300 euros / month
[*]Animals
[*]Dog: 50 euros / month
Horse: 600 euros / month
[*]Other
[*]about 300 euros / month

Savings:

[*]2000 € / extra account / month
[*]733 € / rental account (until 12/22, then 766€ more)

Other expenses:

[*]Loans?
[*]Multi-family house: 766 euros / month (remaining: about 35k)
[*]Taxes: about 350€

Income and expense totals:

[*]Total income
[*]6611 euros / month
[*]Total expenses
[*]3625 euros / month
[*]Balance
[*]2986 euros / month

Thank you very much for your assessment.

Free healthcare means Bundeswehr? Does she "have to" go to another employer at some point and possibly pay for private health insurance herself? Can you live with that if you take part-time because she earns more and there should probably be one or two promotions coming up?

No, she is a state official.

Therefore, a change of employer is out of the question. Part-time work would also be an option for me, the question is how sensible that is.

At the moment I work in day service, long-term the 24-hour service is planned. There is then more free time available.

Well, first of all I would get rid of the loan (766 monthly) or 35K from your equity...

I have thought about that too. However, prepayment penalties here are almost as high as the interest rate (3.5%).

Therefore, the whole thing will run until the end of the fixed interest period (12/20). Then there will be about €23,000 remaining.

I would let the loan run. Otherwise, you do have leverage with the Hobbits (Pferd). Yes, part-time work and children are always an issue, also a cost factor. You can see that with the Pferd. This massive price difference with the property, how does it come about and how realistic is it to get the lower price?