Problems finding an appropriate financing budget limit

Wow, there’s some spice in here :)

Please don’t take everything as given – I’m still at the very beginning; these are all the first signposts I’ve gathered. I am fully aware that not everything fits yet – even Town & Country isn’t even planned – it also serves me as the first “lighthouse” on a stormy voyage :)

My thought in the back of my mind: if I rent a mid-terrace house with 110 sqm in the current town, I pay at least 1,400 EUR cold rent. = A fortune by retirement.
In the neighboring town maybe still 1,200.

I currently live in my apartment way too cheaply: my landlord could easily get 3-4 EUR/sqm more (100 sqm).

Let’s just take the painting. With a living area of about 130 sqm, you have wall surfaces of around 300 sqm plus 130 sqm ceilings (all roughly estimated).
Then you buy a good painter’s paint, for example Indeko Plus. Costs about 80-90€ for 12.5 liters. Each bucket is enough for two coats on 50 sqm. So you already need 800€ just for paint. Please prime beforehand and buy materials like paint rollers etc. Then you end up at your +/- 1,000€.
Who’s going to do the painting then? Who sands the walls so finely beforehand (or fills them in) that you can paint directly? Who alternatively installs painter’s fleece and pays for the material?

It’s true that 1,000€ for paint fits. But then without all other work, as DIY and only the pure material “paint.”
In reality, you will have to spend significantly more before the walls are nice.

Thanks for the price assessment, that helps me with the work :)
I’ve practiced sanding walls, painting, etc., to death during my brother-in-law’s renovation!

Is that somewhere in the coal region? People always say NRW is so ugly there, nobody wants to live there :D. Could this be a reason for the cheap prices because everyone moves away from there?

Otherwise, you must not forget that craftsmen are cheaper where the land is cheap.

And do you really need such expensive paint for a cheap house? Aldi or hardware store emulsion paint is more than enough. That bucket costs 20 euros, not 80!

Nope, northern end of NRW, a very wealthy area. (among others Dr. Oetker, Miele, Claas, Bertelsmann, Benteler, DMG Mori etc. are located around here)
Both infrastructure-wise and landscape-wise very nice!

Don’t make it so hard for yourself and calculate 2,500 euros per sqm for the house -> You can figure it out. (Example for 150 sqm = 375k euros)

Then take about 15% additional construction costs from this amount -> You can calculate it.
(Example for 375k euros = 56,250 euros)

Then add the outdoor facilities with about 5% of the house price -> you can calculate it
(Example for 375k euros = 18,750)

Then add a carport flat rate 15k or a double garage with 30k -> you can calculate

Then add the plot -> you can calculate

It won’t be cheaper, this is the MINIMUM.

Edit: just keep your hands off Town & Country. Franchise system – not trustworthy

Except for the last sentence, I take everything gladly. For the last one see the top paragraph :)

With an interest rate of 1.2% and a starting repayment of 2.5% I get about a possible budget of 400k plus equity for your mentioned 1200€. If you raise to about 1500€, then 500k plus equity is also possible.

Thanks a lot :)
I want to repay at least 3%!

The late award fits perfectly. Now massively save every cent to absolutely increase equity.
Sell everything that can bring money and is not needed. Really give it your all.
Then inspect Town & Country very closely and deal with the minimum. Sometimes the standard catalog house is enough. You can live in that too.
No carport. Driveway and parking place with gravel. That also works. Terrace in ready-mix concrete with concrete slabs.
Simply deviate downwards from the alleged standard in this forum. Here is absolutely contact person no. 1. Pragmatic and free of sensitivities. Then it can work.

Regarding T+C as said, see above :)
Honestly, I am quite surprised how critically salary and loan amount are viewed – in threads I have read so far, it is often about double sums, with maybe 1-2,000 EUR more salary – but also higher living costs. Salary increases will definitely occur – for both my wife and me, but since these are currently not fixed, they remain only in the back of the mind.

We will definitely build more equity – the goal is clearly a home.

We miss nothing with our lifestyle: We simply are not big consumers. We buy most groceries directly from the surrounding farms and from the organic discounter Lidl :-D, have little clothing in the closets, but good stuff. We take long and nice vacations: but not in the Caribbean, rather in beautiful holiday homes/apartments in Denmark, on Texel or Fehmarn.
We do not artificially restrict ourselves for the dream of homeownership – we live like this. And we would live like this even if we had 3,000 EUR more per month :)

If after expenses and repayment rate I still have 1,200 EUR per month (+ special repayments), then I live very relaxed.
If I have to take up more and only have 1,000 EUR per month (+ special repayments), then too, but maybe unconsciously eat one less egg per week ;-)

I think, on the one hand, the total costs are set far too low, even for a standard house... although I really do wish you luck in snagging such a plot with the BRW for the great price... but if I have read it correctly, you currently have a household income of around 2700 euros, and monthly fixed costs of over 2100 euros... your low equity capital is then used up rather quickly, before you can or should even consider a loan of the required amount... or am I the only one who sees it that way? Greetings & good luck nonetheless!

Hi, that is indeed the case, since my daughter was born in 03/2020, but daycare only starts in 08/2021 (fixed date once a year). Therefore, from the beginning, we have built up an additional buffer of 500 euros per month, as my wife stays home - meaning we currently have 3,200 available! This has all been planned this way from the start :) Fixed costs are 4,219 euros from September (+ special payments). Depending on my negotiation skills in the upcoming employee meeting, it could be 200-300 euros more from summer :) PS: in the 2,100 euros are all expenses included, i.e. we currently still have a good surplus of 1,000 euros ;-)

Honestly, I am quite surprised how critically salary and loan amount are viewed – in threads I have read so far, it often involves double the amounts, with maybe 1-2,000 EUR more salary – but also higher living costs.

That might be because your costs are not yet clear. I would now estimate for you:

60k land (really all additional costs included? Notary, property transfer tax, sewage fees)
315k (140sqm at about 2250€ in year 2022)
30k construction additional costs without basement
20k outdoor facilities, carport
10k kitchen
5k furniture, moving....
=440k

With 60k equity until then, that would still leave 380k financing.

What you can still get next year for 2250€/sqm is questionable or you have to be that modest first.
But for a "simpler" smaller house, I also don't see a problem now.

And the city awards 200 of these gifted building lots or are there a total of 200 lots and the city awards a part. These are huge new development areas. And the price is really incredible... Even in the 300-inhabitant cow village near us, the municipality wants 300€/sqm + 150€ development fees and then you have to live in it yourself for 15 years....

However, at sixty, not a landlubber, not a first-time builder as a client, and also professionally experienced in real estate. So with rather moderate prerequisites for the average forum builder to "recognize themselves" in him ;-)
Just a boat rearranges the conviction of how much land one "needs," and probably also regarding the storage space for ballast.

I wasn't at all concerned with recognition, but rather with the pragmatic way Karsten shows when it comes to avoiding costs. Especially when it comes to costs for alleged must-haves. In reality, there aren't that many must-haves.. And I don't know anyone here who can put it better :-)

That may be because your costs are not clear yet. I would now estimate for you:

60k land (really all additional costs included? Notary, property transfer tax, sewage fee) 315k (140sqm at about 2250€ in 2022) 30k additional construction costs without basement 20k landscaping, carport 10k kitchen 5k furniture, moving.... =440k

With 60k equity by then, there would still be 380k financing left.

What you can still get next year for 2250€/sqm is questionable or you have to be that modest first. But for a "simpler" smaller house I don't see a problem now.

And the city allocates 200 of these gifted building plots or are there a total of 200 plots and the city allocates a part. Those are huge new development areas. And the price is really incredible... Even in the 300-inhabitant cow village here, the municipality wants 300€/sqm + 150€ development fees and then you have to live in it yourself for 15 years....

Thank you very much, your breakdown sounds plausible! Yes, assuming 600sqm * 80€ + property transfer etc. = approx. 60,000€.

After the conversation with the city today, I know that there are about 150 plots from the city, in three development areas. In development areas 2+3, however, the square meter does not cost 80€ but 50€. The city's information is that this is intended to enable people without six-figure annual incomes to own a house.

I spoke this morning with the responsible caseworker at the city. The allocation will definitely be funny: So far, a total of 900 applications, 400 of which are excluded because as outsiders they have no "points." Based on experience, every third person drops out because they don’t even remember anymore that 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 cancels again 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 former owners of the building plots, who also privately market additional plots.

And this morning came the news that the allocation is postponed until winter – i.e., there will be a standstill until December and by summer 2022 at the latest we will know whether we snag a building plot. Then all contracts are supposed to be signed.

At least I (according to my feeling) have worked in the connections: :) Gas connection2,500.00 € House power connection2,000.00 € Water / sewer connection3,000.00 € Telephone2,000.00 €

The question is what for the gas connection? Gas is getting more and more expensive. And just because of the gas stove it’s an expensive pleasure. We decided against it, although a gas connection would be possible. Think it over.