Realistic construction financing

You, we are also currently building, even with the most detailed planning you will always exceed your budget, sometimes significantly. There are a multitude of costs that were not foreseeable beforehand and suddenly have to be paid. When calculating the house price, factor in about 30% for additional costs, etc., for example, the utility connections can easily reach 10-15,000 euros. And so on.

Plan generously. For construction financing, experts here can surely assist you.

In terms of financing, I can personally recommend using only one income as the basis for financing. Child benefits and a second income should preferably be considered on top, but not planned for. Everything else is too shaky and can quickly end in personal insolvency. The ancillary construction costs should be planned with €20,000 to €30,000. Only plan the self-performed work for what you really master. Also keep in mind that work and family also demand attention, and a project should not last longer than 6 to 12 months due to motivation. Riester contracts can indeed be used for Wohn-Riestern, but keep in mind that you will receive a letter from the tax office at the latest upon retirement and will have to release new funds immediately or in installments...

Hello Ollyeden

now I have to ask why do you set the incidental construction costs so high?

If the banks you visited apply the flat-rate living costs, it will be tight. You need at least 180,000 euros in credit. That would be about 750 euros payment. However, there are additional costs for the house. These cannot be compared with the apartment. What I miss in all calculations is setting aside reserves for later. Eventually, costs will arise again.

Hello Ollyeden

now I have to ask why do you set the incidental construction costs so high?

high? I consider these to be underestimated!
30k minimum, but without furniture, kitchen or any other luxury!
I'm going to sit on the terrace now, which has no tiles and only an empty beer crate as a seat, because the incidental costs were too low oh yes, the lawn is missing too

Hello Ollyeden

now I have to ask why do you set the incidental construction costs so high?

The incidental construction costs vary greatly by region and have nothing to do with equipment details. While I got all house connections (gas, water, electricity, telecom, Kabel Deutschland) together for just under €6,000, others quickly pay twice as much elsewhere.

The construction road, soil replacement, the installation of rainwater and sewage pipes, etc., are further cost items.

The recommended €20,000-30,000 do not include paving stones and work, nor equipment details (paint, flooring, kitchen).
This amount refers solely to constructing and connecting the house as an object.

Making it habitable with kitchen, paint, etc., may cause additional tens of thousands of euros depending on preference. Granite floors or upscale equipment details (better insulated windows, lockable window handles, etc.) are further cost drivers.