Save, build or buy?

Hello @ everyone!

For a long time, the question has been bothering me: what is more sensible for our situation? "Free" consultation talks with "independent" financial advisors don’t really help me. Therefore, I ask for your help!

Situation:
Man (31) - employed engineer, frequently on the road; no construction experience
Woman (27) Bachelor of Arts in social sciences without a job or homemaker with a toddler;
Child (1 year), no more children planned;

Gross income: 2.2K EUR plus child benefit 184 EUR minus Wohn-Riester (for 2 years) 175 EUR

Equity: 20K EUR + up to 40K EUR possible to borrow from relatives.
Currently cold rent + additional costs + gas + electricity = approx. 400 EUR, only the apartment is small and the neighbors are too ****.
Land prices in the area: approx. 65K EUR without additional costs.

Questions:
Is it enough for building a house? Or rather for continuing to live in a house under loan burden + additional costs + insurance, etc. For a mini-house without a basement, without a garage?

If it is enough:
Loan up to max. what amount? For how long max.?
Use Wohnriester or better to completely get rid of it?
Is KfW construction loan (55, 70) conceivable with the money?

I will be glad for any opinion! Will gladly provide more info if necessary.

Hello,

For a long time I have been wondering what makes more sense for our situation? "Free" consultation talks with "independent" financial advisors don't really get me anywhere. That's why I'm asking for your help!

Did they all advise against it?

Even if you might have confused "gross" with "net" in your figures – how do you want to finance the purchase of land and the construction of a house from this income (whether gross or actually net)?

I am somewhat sorry that you are bearing the brunt of this on behalf of all others now: but I am fed up with this "strange" social mindset. You can only afford to buy a single-family home with land if you put the community 100% on the hook. What is so bad about living in a rental? To look for another rental apartment – as in the case you described? Even private/social housing must pay off at some point, meet people who use this offer! You should know that, since you studied sociology.

Our society does not always have to pay for the demands based on wishful thinking of a social upbringing model – admittedly instilled by history on the one hand and social government on the other :confused:

Just my 2 coins ...

Still, best regards

What you earn is a little less than my worst-case scenario.... So the case that my wife (Dr. Inform) does not return to work after the baby break. However, I have to say that our equity was significantly higher, and we have a financial safety net for the worst-case scenario. So we are building without risk. In your situation, I wouldn’t dare. Can you pay all bills and expenses with 500 € per month? I don’t think so.

Sorry!!! Income NET: 2.2K EUR

Sorry!!! Income NET: 2.2TEUR

Building a house will cost you about €1500 net per month... including electricity/gas/garbage/property tax and reserves. That will probably be enough for a small house, likely without a basement.

Construction expert, thank you for your response and opinion! Actually, I confused net with gross. I find living in a rental quite okay, especially in such an affordable apartment like now. Well, we are forced to look for another, larger apartment. An example: 3 rooms, kitchen, bath, 80 sqm – 485 EUR cold rent + 150 utilities + gas + electricity. Wouldn't it be better to buy such an apartment for 100,000 EUR through a loan? Or a house for 200,000 EUR? A friend of mine is just starting to build a house: 3 children, wife takes care of the children, gross 2,900 EUR, net 2,300(?). I doubt that it can work out well…