Planning to build, is it realistic? Young + Equity

Hello everyone, I have been following the forum for a while and have now registered.

I have been thinking for a long time about building a house according to my wishes. Unfortunately, the purchase offer does not say anything at all, so building something is the only option left.

About me, I am nearly 24 and a half years old and work in the IT sector. My net income currently amounts to about €2,000 per month but will steadily increase. My girlfriend earns about the same. However, I would like to finance the house on my own. Simply so that in case of emergency it belongs to me alone. Now here it comes, I have a bit of equity that I am contributing because my father has already bequeathed me some "assets" in view of gift and inheritance tax. I would contribute equity of €350,000.

My ideas for the house are around 160 sqm living space, 1 1/2 stories, with a usable basement (WU). Normal equipment, maybe with a bit of home automation included. It should also have KFW 55 or 40. I also imagine a nice double garage.

I have been looking for a plot for a long time, so far unfortunately without success. I would then pay for that from the equity and calculate about €100,000 for 800-1000 sqm fully developed with notary and tax etc. That would leave €250,000 equity remaining. Of course, you don't get a house for that. I was then thinking of a loan of about €150,000-200,000.

The question now is, is all this feasible, what would you do?

Is it feasible: Whether you are worthy in the eyes of a bank, with a net income of 2000 euros, to take out a loan of up to 200,000 euros, I cannot say. I have my doubts, though; calculate with a 5% annuity, then you would have 1166 euros/month left for living expenses, including maintenance of the house. Additionally, there might be rental income from your girlfriend, but that already gets complicated...

What would I do: I would -- I say this today, a few years older than you -- not thoughtlessly consume this advanced inheritance/gift. I would choose a secure investment form and only then build/buy a house once my family situation has settled somewhat (girlfriend ==> wife, children). My main focus would be on my professional advancement; you can still build a house at 30.

Certainly possible. However, you should only undertake it if you are sure that you will continue to live there - selling quickly is rare; renting out such a property depending on the location is also not profitable. You might also want to check the relationship with your girlfriend. Too unequal ownership shares can lead to trouble with certain personality types (both sides).

Hi,

Of course, you can't get a house for that.

Yes, you can get houses at that price. It just doesn't fit your personal preferences, but they are houses nonetheless.

Kermit

Hmm, so for 200,000 you get a great house, even with kitchen and everything already finished. For 250,000, there are even some extras like a garage or something included. But even if you needed an extra 100,000 (whatever you want to spend that on), at your age that's no problem. Don't really understand the question.

Thanks already for your answers. So the money will definitely not be wasted or spent on useless stuff. It is currently in the stock portfolio, as it actually always has been.

I am sure that I want to continue living here. I have family, friends, and work here, and hopefully that will stay that way. Whether my relationship with my girlfriend continues or not should have nothing to do with the house for now.

@Kermit I meant a house with my ideas.