Slowly but doubt about financing

Hello everyone,

my girlfriend and I are planning to build a house soon. Until now, we were firmly convinced that the project is definitely feasible. However, after reading many topics here, I am slowly starting to have doubts. Many users were rather advised against it under roughly the same conditions...

Here are the key data:

Total volume: €600,000
- €130,000 for land (€250-€300 per m², fully developed) in the Munich suburbs
- €350,000 pure house construction (after many talks with friends and builders, we arrived at roughly this amount, planned are 180-200 m² of living space with a basement)
- €70,000 additional costs (planning, taxes, insurance, etc.)
- €50,000 buffer

Equity: €100,000 (in an emergency, we can also manage to get €120,000 together)

Income €4,500
- She approx. €1,300/month net (plus €450 part-time job, but I don’t want to include that in the calculation, rather use it as extra income for saving)
- I €3,200 (fixed) + on average €400 commission (but I also don’t want to include this as mentioned above)

Expenses €1,700
All expenses combined (living expenses, additional costs, insurance, etc.). We save on 1.5 cars because she only drives max. 5,000 km and I have a company car.

Other
I already own my parents’ house (worth approx. €400,000, debt-free), in which my parents have lifelong usufruct rights (both 70 years old)
My girlfriend already owns a condominium (worth approx. €120,000, still burdened with approx. €15,000), in which her mother (56 years old) still has usufruct rights.
My father has built up a stock/fund portfolio currently worth approx. €350,000.

What do you think about these circumstances? Does the planned project make sense? Can one include the inheritance assets expected at some point as security (later approx. €1,700 rent as extra money) or should a new build be considered completely separately?

I would appreciate feedback and input.

Best regards,
der gnom

If you can handle a rate of something over 2000 euros, I don't see a problem there. Otherwise, I would simply consider one size smaller.

Hello,

ok, children come, cost money. Income is good (not very good) considering the loan amount (I assume 500K).

Big plus, OK sounds morbid, but if the parents die, there are assets that could be liquidated.... The question is how the banks assess this. Normally not at all

180-200 plus or including basement?

I personally would have a problem planning for the assets of living people. This is not meant in a bad way, but you surely wish your parents to live to a very old age, just like your girlfriend wishes for her 56-year-old mother. Then you might have to manage without these assets for 15, 20 or more years. If you have managed your finances until then, you probably won’t need them anymore. So, it’s best to disregard them right away.

Big plus, OK sounds macabre, but if the parents die, there are assets that could be liquidated.... The question is how banks evaluate this. Normally not at all

From my point of view, as a bank, this cannot be taken seriously into the calculation, since the parents could both change their will (unlikely) and also become a severe care case with corresponding follow-up costs...