Risk house financing or not?

Hello, I just wanted to quickly get some honest opinions on whether our ideas about financing a house are realistic. Since our experience with the subject of house construction and financing is zero.

A little about us:

Man, 25 years old, income: approx. €4000 net
Woman, 24 years old, income: currently none
Child, 2.5 years old ----------------------------

We thought of financing an amount of about €400,000. However, this would include:
The house, the plot of land, the kitchen, the incidental building costs, the outdoor facilities.

We have not saved any equity so far. There is currently a leasing contract for our car running. And a second one for furniture etc. Both will be paid off in about 2 years.

Does a bank even finance all the "incidental costs" or only the pure house value?

We currently pay a warm rent of approximately €1200 for a 4-room apartment. After the two loans mentioned above are paid off, we would have a "rate" of about €1700 available. Is that even realistic? Unfortunately, we have no relatives who would gift us a plot of land or anything like that. That means we would have to cover everything ourselves completely. We would also have to build turnkey since we both have two left hands and don’t really know anything about it. Also, there is not really anyone in the family who could help us save costs and assist with the construction.

What would you say? Is it theoretically possible to manage a house financing with this income, so pursue the building project, and that without equity? Or would that be too risky and we should wait longer? Our child will also soon be going to kindergarten. I could at least work half days, which would add about €600 more to the household budget.

Please don’t forget that we are still quite young and haven’t really had much time to save capital.

Thanks for the feedback, best regards

Actually good net income, but to start with 400,000 fully financed at 100% is nothing. If you want to convert your rent amount into a loan, you could finance about 250,000 or a bit more. But not 400,000. In addition, you should first get rid of the two installment loans, which are, if I have calculated correctly, 1100 every month. And urgently save up equity.

Hello

So you won’t get more than 250,000, if not less because of your [Leasingvertrag]. My wife and I also earn about 4300 net per month and we also have no equity and I was at the bank yesterday, so I can tell you that. My bank also does not pay ancillary costs but only the house value.

Every financing is something individual. Every bank acts differently. Just because you get a loan doesn’t mean it is also good for yourself. If you don’t get the loan, the bank may have its reasons for that. So it is hardly possible to generalize.

Incidental construction costs are usually covered by the banks, but if only the house value is financed with you, then the problem probably lies with the estimated total costs and the loan.

@ L.W. I probably read too quickly yesterday. You write that if the loans were paid off, you would have a rate of 1700 left. Does that mean in reverse that you need 2300 € per month for living expenses besides the rent? That is, to put it mildly, very generous, and you should make a household budget once to see where the money disappears.
If you were to get an interest rate of around 3.5% from the bank without equity, then theoretically you could service a loan with the 1700 €. However, with a 1% repayment, you would still have almost 270,000 € in residual debt after 20 years. So it is best to save for a few more years. Then build.

Darn, I just see it now: You are from Switzerland. That obviously puts the net income and your monthly expenses into perspective. Since I know how expensive a simple apartment is in the vicinity of Winterthur, I dare not make a prediction on the subject of house construction in Switzerland. Sorry (Meine Tante hat eine 2 Zimmer Wohnung dort, mit ca 70 qm und die hat einen Wert von fast 500 000 Franken, je nach Wechselkurs ist das ne Menge Euro... )

I have also already wondered which job pays 4000 net at the age of 25...

the question now is: Does your boyfriend commute and you live in Germany? Or do you live in [Switzerland]? The cost of living is somewhat different there....