Timeframe and Feasibility Single-family House Construction

Hello dear forum members,

I have been dealing with the topic of house building/purchasing for a year now and came across this forum through this. I have been reading along here for a while and really like your quite critical assessments.
Basically, I was initially a bit shocked by the prices being asked for on the real estate market, but that is probably the reality.
I also see a property as a long-term investment, as I currently prefer not to invest my available capital solely in stocks & co.

Construction project:
Building/purchasing a single-family home with approx. 150m² + basement and approx. 600m² plot.
In my home community (edge of the Odenwald with approx. 45-60min simple driving distance to the Rhine-Neckar/Main area) a new development area is planned towards the end of the year. The development plan is in progress. We have put our names on a waiting list of interested parties for this. I estimate that the costs for the plot will amount to approx. 100k€.
Basically, an existing property is also an option.

In my possibly optimistic hope, I have imagined a cost framework up to max. 450k€.

General:
He (27) + She (25) in a relationship of several years, unmarried without children. Marriage in the near future is quite conceivable, the desire to have children is also present.

Income and asset situation:

[*
He (27) net salary 3,300€, from next year 3,400€ (tax class 1), larger salary jumps in the next 4-5 years rather not conceivable
[*]She (25) still studying (planned graduation this year), 450€ part-time income
[LIST]
[*]Due to the current economic situation and the outlook on the job market / my girlfriend’s expectations, I do not initially assume that a high salary is to be expected at the start. With 1,800€ net, she would already be doing well for now.


[*]Equity currently 70k€

Expenditure situation:

I list our cost blocks separately, since there is no joint household account yet. Most of the joint costs are borne by me.
Basically, it should be said that both of us are actually economical (except for a few exceptions). Variable cost blocks are calculated generously.

(He)
- Warm rent: 560€
- “Fixed costs”: 670€ (includes: electricity, telecommunications, insurances, calculated depreciation of car, fuel, subscriptions, GEZ [broadcasting fee], etc.)
- Variable costs: 550€ (includes: clothing, groceries, leisure, other technical purchases)

(She)
- Additionally with everything around 650€

There are no current loans.

Joint planned expenses therefore amount to 2,430€.

Savings contributions:

In the end, I currently have between 1,500€ and 2,000€ left per month. My variable calculated costs are therefore factored in quite generously, but I prefer to play it safe.

However, the following monthly savings installments/reserves still have to be deducted from this, which I would also like to continue committing to possible financing:
- Vacation 150€
- ETF portfolio 300€

My plan is to save 20,000€ per year including savings installments/reserves.

My planning:

I am now assuming the worst-case scenario. That would be that I, as the sole earner, have to be able to finance the house. A marriage would be necessary here purely for tax advantages.
It is still definitely planned that my girlfriend will work. But if children were to be added, of course, you cannot count on a fixed income.

+3,900€ net income
- 1,000€ “fixed costs”
- 850€ var. costs
= 2,050 surplus I
- 150€ savings rate vacation
- 300€ ETF portfolio
= 1,600€ surplus II

In total, 1,600€ would remain to cover financing, incidental costs and reserves. I would like to repay the financing with 1,000-1,200€ monthly.

I come to the conclusion myself that this will be a tight squeeze, especially if you assume that at some point children will also have to be financed.

So I would like to know from you whether our current plan makes sense.
- Is my calculation plausible?
- Is it advisable to buy a plot already during the course of next year?
- Is this plan financially feasible? If not, how large is the gap we would have to bridge?
- Given the factors: How much house can we actually afford?

Many thanks in advance for your effort and honest opinions!

You write about 100k land costs in the Odenwald (600 sqm). How realistic is that? The land prices are already higher there. Generally, calculate with higher costs of 500-550k. It will be tight with your income. I would advise you to build together and sign the loan together as well.

You write about 100k land costs in the Odenwald (600 sqm). How realistic is that? The land prices there are already going higher. Basically, calculate with higher costs of 500-550k. It will be tight with your income. I would advise you to also build together and sign loans together.

I am unfortunately not sure if it is really only 100k. The standard land values in the neighboring residential areas are around 120-150€/m². So I hope that 100k will be enough. If it is slightly over, that might still be okay, but I’m actually not willing to spend much more.

If my girlfriend also earned money, I am sure we could afford it, but I just feel better financially if I can cover it with only my salary. We would also build together, but unfortunately, it’s not the case that my girlfriend can contribute any significant equity.

Are 350k for a solid single-family house with a basement and standard equipment realistic? Or am I already on the wrong track here?

Thanks for your opinion.

Are 350k realistic for a solid single-family house with a basement and standard fittings?

No. Not for 150 m2. Without a basement and somewhat smaller, let's say 30k incidental costs and 20k exterior work, at best 300k remain for an upgraded house. Without any further buffer. That will already be tight at 150 m2!

A bare utility basement with 100 m2 floor area would already be at 50k plus earthworks --> Better invest brainpower in the roof and use the attic for heating, storage, and possibly a study/hobby room.

Better calculate with 400 to 450k for the house including outdoor facilities, garden fence, and all the pipapo. The land will be additional.

I estimate total costs of at least €500k