Slowly but doubt about financing

Overall, huge amounts of money are at play. The house is really expensive (definitely well over 1 million Marks!), the equity is good, but rather weak for this size of house. A 500,000€ loan with a 5k household income is more than ambitious, when the usual average income household with 4000€ normally borrows a maximum of about ~250,000€ (1000€ installment/month). It's hardly possible to ever repay 500,000€ that way (the interest is already enormous). So it is being coldly speculated that the parents will leave a substantial inheritance. That is quite risky and also has a macabre note. They have already transferred the house to you, which means nothing at all. Your parents still have a hefty sum of money saved up. If both now become in need of care, which more or less happens to everyone eventually, the money will be gone in no time. Once the money is gone, the house will be liquidated. The state will then come to you and demand the difference between pension and costs from you. You can of course pay in cash or sell the house. Furthermore, some spry retirees also like to treat themselves to something from their lifelong savings. With 350,000€ you could also travel wonderfully for a few years, buy a sports car, or whatever... In the end, the money is gone, you pay for care for 10 years because "the old simply don’t want to die," and you go bankrupt. And all just because you simply cannot wait and already want to spend your money now. You have a condominium that is practically paid off (15,000€ remaining debt with 100,000€ equity haha...). How old are you that you can't wait another 10 years? If your parents have died and the house and also a large part of the money is still there, you could pay for the new house in cash from the sale of the condominium! Or you move into the already transferred house and renovate it thoroughly. If it's about the land: buy it today (without a loan!) and then leave it lying. In a good location, the piece will sell like hotcakes in 10 years if needed.

Good day,

- €350,000 pure house construction (after many discussions with friends and builders, we have come to approximately this amount, planned are 180-200 m² of living space with basement)

I don’t know what you discussed with friends/builders, realistically €350k for 180 sqm living area only covers the standard; also only conventional construction methods. Besides painting and flooring, for example, neither ventilation, nor electric shutters, or other nice-to-have features are covered, which homeowners nowadays usually want installed.

- €70,000 ancillary costs (planning, taxes, insurance, etc.)

Is soil replacement necessary or how do you come up with this amount?

The potential care of the parents (or the costs) hang over every house builder like the sword of Damocles (this is also macabre).

Why macabre, what do you mean by that?

Best regards from the Rhineland

Before one is called upon for the care or costs of parents, one must already earn a decent income. There remains a very high personal allowance that one must first overcome.

Before you are called upon for care or costs for parents, you have to earn a decent income. There is a very high personal allowance that you first have to get over.

I can only confirm that, especially since homeownership is protected anyway

On the other hand: The potential care of the parents (or the costs) hangs over every home builder like the sword of Damocles (this is also macabre).

Why macabre, what do you mean by that?

Well – on the one hand, it is a reality that future care of parents can "wreck the best financing," but the term sword of Damocles carries a negative connotation in my view. I think that the care of the parents, to whom I owe a lot (in my case), combined with the word "sword of Damocles" has a negative undertone (socially/ethically speaking).

Nevertheless, the occurrence of this case can also affect us deeply and possibly push us to our limits, which is why I still used this term.

PS: I have not dealt with the income limits on this issue so far – so maybe it's not as bad as it sounds.

So a 500 k€ loan with about 4500.- income seems very ambitious, we have "only" 270 k€ with almost the same income and already find that a lot. I would rather tighten the purse strings again when it comes to the size of the house, even if you now say it MUST be that big. What if you get older and the children move out? I see it every day that many older people then have to sell their house with a heavy heart because it is simply too big and too expensive as well as too much work. Especially with a basement, 160 m² is also spacious if you choose the layout well, and fortunately you can choose that freely in a new build. Additional costs and buffer are also quite high (better than too small, the outdoor area also costs a lot), but I would build one size or at least half a size smaller, and then the concerns and doubts are significantly less.