Realistic monthly rate

Thank you very much for your suggestions, we have an appointment with the architect on Friday.
20 sqm less living space corresponds to about 40,000 euros less construction costs. In addition, changes in the equipment amounting to 20,000-25,000 euros, then we would be at 60,000 less.
I already have ideas for both, otherwise I will certainly post more in the [Ideenfindung] thread.

Together with a possibly available [Erbpacht] (interest 1.5%), a total amount of roughly 350,000 instead of 480,000 would be calculated in the end.
For the financing, of course, the [Erbpacht] would have to be calculated, but financing expenses of about 300,000 sound at least more realistic to me than 430,000, but let's see if it really is.

If you don't know people personally, you should be careful with terms like "squander". And fictional income is somewhat modestly phrased for an existing employment relationship that is currently paused due to parental leave. Thanks anyway for your opinion.

Sorry, "consumed" you are 37 & 40, I only see installment loans that still have to be paid off with what I consider a very good income. The woman certainly earned before the child as well, and full-time (?).

Where is the equity then? Sorry, then the financing of over 400k just doesn't fit. To undertake such a project without equity, you have to look in the mirror and ask "can we manage this in the long run". At your age, despite the interest rate level, you will be financing until retirement. Nothing must change whatsoever on the income side or interest side (refinancing).

Even if you don't like that now

Equity buildup was not possible in the past due to private matters, all debts (approx. 5000 euros) except for installment loan (last installment May 2017) have been repaid in the last four years.

Is the 5000 still outstanding, or have you only repaid 5000 in the last 4 years?

monthly, 25 years fixed interest rate, approx. 100,000 euros remaining debt. However, I will already be 62 then, and that does not seem entirely optimal to me.

And would that already be approved by a bank? If that were feasible, the bank should have already considered pension income.

Who and how made these "offers"?

Equity is conversion of Riester plus subsidy from parents-in-law

Are you aware of issues like housing promotion account and deferred taxation? In particular, this does not fit together if the financing itself already runs into retirement age.

have an appointment with the architect on Friday.

Is it the first or a follow-up appointment?

Is the 5000 still outstanding, or have you only repaid 5000 in the last 4 years?



And would a bank really consider that acceptable? If that were feasible, the bank would already have had to assess the pension.

Who and how made these "offers"?



Are you aware of topics like the housing promotion account and deferred taxation? In particular, this does not fit together if the financing itself already extends into retirement.



Is this the first or a follow-up appointment?

The 5000 have been paid off plus a safety reserve has been built up, which should not be used for the house construction. Outstanding is an installment loan with five remaining payments. I myself do not find the financing good, which is why I refrained from having the Interhyp broker obtain an offer from the bank. I am aware of the Riester issue.

2..3 months' salaries are not safety reserves for a single-family home owner/payer. That is pocket money for a major car repair or simply so you can sleep well (if you can't pay for a broken washing machine out of your monthly income, you shouldn't build a house anyway). Safety reserves are when you have money to cover all fixed costs for 1..2 years.

I had overlooked your age at the beginning. Having no equity at the end of your 30s completely speaks against the idea of building a house. I already had a nice amount of equity saved by the end of my 20s, even without a huge income. Because I already knew in my mid-20s that I wanted to build in 10 years. Now 10 years later, I am putting that into action. That would be the recommended approach.

I have to admit, I am really curious. Are you also going to present your house here?

I have already written several times.. that we build quite "down-to-earth". Certainly not small and in a very good location for our standards. But without golden faucets.

There probably won’t be any pictures from me here, at least none where the house itself is recognizable. Why? I have publicly mentioned certain numbers (construction costs, income) several times here and prefer anonymity, especially due to my income combined with being the father of a small daughter. Call me paranoid if you want. I can live with that.

Greetings, Steffen