Single-family house + land (purchase or leasehold) with high interest rates

With a leasehold, the bank can realize the house less effectively because the landowner must approve the sale

In a foreclosure (and the bank does not realize it any other way) no one needs to be asked. Just auction it off and that's it.

I do not have an offer for the purchase of the property yet, as the purchase property only appeared quite recently. The advantage of the leasehold property would be the slightly better location. The purchase property is somewhat on the edge of the village and on a slope, which shouldn't be much of a problem with a basement.

And I always thought that €3200 net wouldn't be so bad as earnings :) how times change.

Thank you very much for the many responses. I will reconsider my financial plan and possibly consult an advisor + [KFW- Beratung].

And I always thought €3200 net wouldn't be too bad as an income :) how times change.

Just calculate €1200 installment, €400 incidental costs (since as an owner-occupier you have to pay everything yourself) and half is gone. Then there are €1600 left for car, insurance, cinema, sports club, food and clothes of course. That's not really a lot and retirement provision tends to fall by the wayside then.

And I always thought €3200 net wouldn't be so bad as an income :)

They aren't. But keeping the wife at home and building a house, that doesn't go together. Especially not with the fixed-term contract.

Just calculate 1200€ installment, 400€ additional costs (since as a self-user you have to pay everything yourself) and half is already gone. Then there are still 1600€ left for car, insurance, cinema, sports club, food and clothes of course. It’s not really a lot and retirement provision tends to be neglected in this case

You forgot the 250 euros ground lease. The installment for the land would probably be similar.

That leaves only 1350 euros for all expenses and reserves. Plus 438 euros child benefit.

3200 euros net for you alone is not bad. But as household income in the home-building area, it’s quite little.

My alarm bells are ringing. In the neighboring thread, it is already being said that additional costs will come your way. Also, it gives the impression that you hope the subsidy will pay for the high KfW standard (and possibly the granny flat?). That is not the case. Both make building more expensive. Was it initially your mother-in-law’s wish to move into the basement (expensive!) or was the granny flat planned first?

The radiators won’t make up for that anymore.

I urgently ask you to realistically calculate your project and then take another look to see if it can be financed.