Problems finding an appropriate financing budget limit

Until a few days ago, I had not the slightest idea which types of costs would arise. At T-C I had an initial figure at hand, and basically we really like the floor plan!

Does the house price come from the homepage, or has a concrete offer already been planned with your wishes? One should also not overestimate the ancillary building costs. Depending on the soil conditions, a soil replacement may be necessary. That quickly amounts to five figures.

Very important for the financing of the land (if through a bank) to take a variable interest rate so that you can redeem the land during the house construction and the bank financing the house receives the first rank in the land register.

About 3.5 years ago we bought the land for €40 / sqm (40km south of Berlin). Meanwhile, the standard land value is €100 / sqm. We are allowed to use the difference as equity, so that the interest rate is accordingly lower.

Thanks for the tip!

And thanks for the experience report. I will then simply address our house bank very openly.

Maybe our plan is to buy the land directly from equity, then state this as equity for the construction financing and save new equity until the start of construction.

In addition, we would already move in with my parents-in-law during the construction period (house with >200sqm living space): a) to save costs b) to be closer to the construction site (as the crow flies 1km)

And here in the countryside without proper bus connection or supermarket we currently pay €650 / sqm. I am almost jealous of your prices!

Absolutely. In our current place, 600sqm plots are also going for €300,000, so we had basically closed the topic of building and were orienting ourselves towards 60s houses in the distant outskirts – but even for those you pay at least €350,000 + renovation, and live far off the beaten track.

Is the house price from the homepage or has a concrete offer already been planned according to your wishes here?
Also, one should not underestimate the incidental construction costs. Depending on soil conditions, a soil replacement may be necessary. That quickly becomes five-digit.

The pure house price is the homepage price for the district!
The building land is flat and has no special soil conditions (friends of my wife built in the first part of the area).
I know 400m as the crow flies the soil can look different, but I do not at least expect any extra costs because of slope or the like.

Some thoughts need to be set straight:

Earthworks incl. (the building plot is perfectly level)

The building land is perfectly level and has no special ground conditions (my wife’s friends have built in the first part of the area).

Perfectly level does not automatically mean unproblematic. Clay or swamp would have to be replaced. Even stony soil can cause additional costs.
Even if none of this applies: GCs have earthworks in their scope of work, yes. But only up to 20 or 30 cm. You would be the first where nothing would add on.
GC and scope of work concern the house, but not the land. For example, downpipes have to be connected to the sewage system, rainwater has to go somewhere... that costs your money, not the GC’s!

As said:
sqm land: 50,- EUR
+ 30,- EUR for connection costs etc.

That is called development costs.
Your utility connections also come into play in the incidental construction costs – your responsibility, by you... below 30,000€ you can no longer reckon with incidental construction costs!

Additionally, during the construction period we would already move in with my parents-in-law (house with >200sqm living space): a) to save costs b) to be closer to the construction site (1 km as the crow flies)

That is very good! That saves on kitchen, lamps and furniture :)

I spoke this morning with the responsible caseworker from the city.
The allocation will definitely be funny:
A total of 900 applications so far, of which 400 are excluded because, as outsiders, they have no "points."
Based on experience, every third person drops out because they no longer realize they are still on the applicant list. (In a village like this, apparently children are often put on the applicant list by their parents without their knowledge) :-D
Additionally, at the end, every second person declines because the costs are too high, the desired plot is no longer available, divorced, bought elsewhere, etc.

She told me that with our points we have a 50:50 chance.
She kindly gave me the contact details of the previous owners of the building plots, who also privately market additional plots.

And this morning the news came that the allocation is postponed to winter – that means there will be a standstill until December for now, and by summer 2022 at the latest we will know whether we can get a building plot. Then all contracts should be signed.

Some thoughts need to be set straight right now:

Being flat does not automatically mean unproblematic. Clay or swamp would have to be replaced. Also, a stony soil can cause additional costs.
Even if none of that applies: General contractors have earthworks in their construction performance description, yes. But only up to 20 or 30 cm. You would be the first for whom nothing would be added.
The general contractor and construction performance description concern the house, but not the land. For example, the downpipes must be connected to the sewer system, rainwater has to go somewhere... that costs your money, not the GC’s!

This is called development costs.
Your utility connections are also included in the incidental construction costs – on the builder’s side, by you... below €30,000 you can no longer expect incidental construction costs!

This is very good! That saves on the kitchen, lamps, and furniture :)

At least I (according to my feeling) factored in the connections: :-)
Gas connection €2,500.00
House electricity connection €2,000.00
Water / sewage connection €3,000.00
Telephone €2,000.00

Phew, painting 1000€? You can't even buy the paint for that. Flooring 2000€? Do you want laminate everywhere for 10€/sqm? (Ab)water connection 3000€? I alone paid 1000€ so that the municipal utilities would lay the water pipe from the connection point already on the property into the house, and I had to dig the trench (=pay for it!). Electricity is the same, by the way. The handover shafts for wastewater and possibly rainwater already cost more than 3000€. Only the gas connection might be realistic. Telekom 799€ fixed.

Phew, painting €1000? You can't even buy the paint for that. Flooring €2000? Do you want laminate everywhere for €10/sqm?
(Waste)water connection €3000? I alone forked out €1000 so that the municipal utilities would lay the water pipe from the connection right onto the property and into the house, and I had to dig the trench (=pay for it!). Electricity is the same, by the way. The transfer shafts for wastewater and possibly rainwater cost more than €3000. Only the gas connection might be realistic. Telekom €799 fixed.

As I said: I have no clue yet, these are conditions that I have come across while Googling. I very much appreciate your input! :-)