Renting, ownership of a condominium, or just building after all?

Hello everyone!
The following situation applies to us:

I am 46 years young, earn €2400 net - my 40-year-old girlfriend is at €1800, but it could increase to €2200 in one/two years - still open.

So initially €4200 - no children.
Cash assets €30000.

We are considering building a small 122 sqm prefabricated city villa on a 388 sqm plot.

The land price is €90000,
the house €210000 turnkey - we would have to do the groundwork for the foundation ourselves. And inside the house the flooring, plastering and painting the walls.

The plot is empty, fully developed and lies about 50-80 cm lower than the newly built neighboring plots. So raising, compacting and done - I have no idea yet what the preparation will cost.

But before buying (if we should build) I will have a soil analysis done to avoid surprises.

The garden size is manageable and we will do it too - along with the terrace.

Financing is planned with a €1200 payment + an annual special repayment of €3000 - so total = €1450/month.

We also roughly calculate €300 monthly incidental costs.

Our financial advisor calculated the following model:

Required total financing = €365000 - equity capital = €335000

KFW €100000, 10 years 2.06% effective annual interest rate

KFW €10000, 10 years, 1.66% effective annual interest rate

Risk with these two amounts:
After 10 years follow-up financing, the interest rates will certainly be higher then.

Construction loan €225000, 10 years, 1.32% effective annual interest rate - then allocation into a home savings contract until 2043 at 2.52% annual interest rate. This is the safest option.

At my retirement in 20 years, about €73000 would still be outstanding - monthly expense then €1180 for five years, then another four years €340 until zero.

My pension will be around €1300, together with the salary (still seven years) of my girlfriend we will then be somewhere around €3100.

Conclusion: It is possible, but will there still be enough breathing room or quality of life?!

At 46 and 40 years old to take out a €335000 loan with €4200 or possibly €4600 - yes or no?!

We have been doubting for weeks and constantly fluctuating between yes and no. For the later small pension, ownership is of course great. Rents are backward and keep rising. But without buying a house, the current and future quality of life is higher.

In parallel we have already looked at several condominiums.

But the price/performance ratio is currently terribly bad.

Where is the journey headed?!

Sorry for the long text, I just had to put my thoughts in writing - sometimes helps me with certain decisions....

Best regards, Marc

Short and to the point, personally I wouldn't do it. I would leave the special repayments aside and calculate with the rate of €1200. That would roughly be €1500 including additional costs with a net income of €4200. Roughly 30% of the net income excluding heating costs. I think that's reasonable and manageable. What bothers me is the still relatively high remaining debt at retirement. Does the bank even allow that? What would personally bother me the most, however, is that in case of a separation I would no longer be able to afford the house and would therefore be forced to sell. Just my personal opinion.

Build smaller and cheaper. Two people need a bedroom, living room, guest room, kitchen, bathroom, optionally guest WC. That would be around max. 100 sqm.

fully developed

Land price is 90,000€,
the house is 210,000€ turnkey

the house is 210,000€ turnkey - we would have to do the ground preparation for the foundation ourselves. And inside the house, the floor coverings, plastering and painting the walls.

The garden size is manageable and we will also do it - together with the terrace.

And then suddenly it is:

Required total financing = 365,000€

Would you maybe like to break down your costs better?
Perhaps we are talking about completely wrong assumptions. At first glance, I suspect one or another thing forgotten. Then I would also say something about your financing side.

Who actually plasters the walls?

Hi everyone!
Thanks in advance for the answers.
The total sum breaks down as follows:
Purchase price of the land: €92,000
Additional purchase costs: approx. €13,000 (broker, notary, court, property transfer tax)
House with foundation slab: €210,000 (incl. technology, underfloor heating, electric shutters)
Material for interior work in own effort: €15,000 (laminate, tiles, wall paint, accessories)
Additional house costs approx.: €35,000
Buffer: €5,000
Total: €370,000, minus cash assets = €340,000.
"Muscle mortgage" is stated as €25,000.

I will plaster the walls (inside) and paint, tiles will be laid together with friends.
But everything is still completely open – the special repayment will probably be included as a monthly repayment.
Then about €1500/month – so with additional costs €1800. With a net income of €4200 – later probably €4600 net – a big chunk, but doable?!

A city villa makes sense because the plot allows two stories – and 122 sqm because no basement... something a bit smaller might also work.
It is difficult...
With skill, I might be able to negotiate €10,000 off the land – but that is completely open...

Cheers!

Take a look at Scanhaus Marlow Marlow, the SHB 80B plus 40. It starts at about 140k. With a slab foundation. The basement issue is solved by the plus 40. If you are short on money, in my opinion it is sufficient for 2 people.