Sole earner with a desire to build a house

Hello everyone,

after years of silently reading along, I am now also speaking up because our dream of building a house could come a little closer due to a new development area - provided we can afford it.

My wife (32), our daughter (8 months), and I (32) plan to buy a plot (approx. 700-800 m2, 110 €/m2) next year or the year after and build a city villa (approx. 150 m2, solid construction, without a basement, brick-faced) with a double garage or alternatively a single garage + carport.

Costs: approx. 500k€

[*]100k land
[*]300k house
[*]100k garage + additional costs

Monthly income (net): 4600€

[*]He: 4000 (software developer, IG Metall, ~14 salaries)
[*]She: 400 (parental allowance plus, still about 1 year, then open, another child planned in about 2 years)
[*]Baby: 200 (child benefit)

Our equity currently amounts to 220k (savings rate of at least 2000€ monthly over the last 3.5 years)


Monthly expenses: 4570€

[*]1100 rent (800 cold, 120 additional costs, 80 gas, 50 electricity, 50 parking space)
[*]400 groceries, drugstore
[*]150 canteen
[*]80 insurance (household contents, liability, legal protection, my too small disability insurance (20€ -> 400€ pension))
[*]80 internet + 2 mobile contracts
[*]50 sports club
[*]30 broadcasting, Netflix, Prime
[*]70 eating out
[*]200 car (family station wagon, 3 years old, bought cash as an annual car for 25k, saving for later replacement is part of savings), 100 fuel, per year: 400 insurance, 250 tax, 50 inspection + emissions test, 500 service including wear parts = 100/month
[*]300 vacation
[*]100 miscellaneous (clothing, shoes, …)
[*]2000 savings

Thus, in theory, 30€ remain per month with a savings rate of 2000€.
However, due to special payments (performance bonus, relocation allowance, holiday pay, Christmas bonus) and costs that only occur once a year, there is usually more left over. This is mostly saved as well, so the somewhat underestimated monthly car costs do not cause problems.

Our goal is to contribute 200k equity and some own work (father-in-law can do the electrics and + experience from building his own house).
Thus we would have to finance 300k. Equity will continue to grow until construction begins, but will probably be eaten up again by rising costs.
We had planned a monthly rate of 1100€. The savings rate would then probably drop to 1000€ due to higher additional costs and a second car needed.

Do you think this is realistic?

Regards Falk

Do you think this whole thing is realistic?

Quite easy. You don't need to discuss it for long. Your current cold rent already corresponds to an annuity of 3.2%, which would be sufficient for financing (but I would advise you to choose a higher repayment).

With your conditions, definitely do it. Try to push the whole project forward, if possible, before the CO2 tax and the next version of the energy saving ordinance come.

But please make sure to increase your BU!! You explain that you are the sole breadwinner and secure a whole 400 euros... if your ability to work fails, you can figure out for yourself what will happen.

Realistic cost overview, good earnings and solid equity. You are THE house builder par excellence. You can cancel BU, it’s no use at that level.

Thank you for your feedback so far.

I will take the topic BU with me.
In addition, I will look for a risk life insurance when closing the loan, so that my wife and child are covered in case of emergency.