(Unfounded) fear of monthly burden?

Hello,

I have a family of four (2 children, 4 and 1 year old) and we would like to fulfill the dream of owning a single-family house. We have now found a plot of land and have been crunching numbers for some time. I would simply like to hear a few opinions on the planned project - my wife always says I’m seeing everything negatively.....?!?

Key data:
I am a civil servant and earn about €4000 net per month (into the account, child benefits are already included...). We want to calculate exclusively with this income and see everything else as possible additional payments etc....
We have estimated the construction costs including the plot at about €500K - we have about €250K in equity (own work not included...) - i.e., we have a financing need of about €250K.
The own work is not included but could be somewhat larger since I am a trained craftsman and have good contacts (this is supposed to act as a kind of buffer in the financing...).

I have added up my fixed costs, variable costs, etc. in tables and compared them with the income; this leaves a maximum of €900 for a loan installment. On the other hand, I think that with an income of €4000 (which will still rise), at least €1200 installment should be possible.

We live in Bavaria but in a not very expensive region (plot €160 per sqm).

What do you think - I would be very interested in your opinions and experiences. Did you also have worries at the beginning and still took a “risk”? Or am I not seeing things so negatively and building just isn’t possible with this income???

Many thanks for reading and responding!

Honestly, you are in a luxury situation with 4,000 EUR net (and then also with such a secure civil servant job). But you also seem to live accordingly, since only 900 EUR is left for a loan installment. What do you do with all the money? Please don't take this the wrong way, but you don't have an income problem, you have an expense problem. With 4,000 EUR net, I would have rather guessed a relaxed installment of 1,500 EUR.

Hello

if I calculate with 3% interest & 2% repayment, I come to a monthly burden of about €1050 / month. Then there are the additional costs for a house (tax, garbage, insurance, etc).

Basically, the financing should be representable like this. How about your wife? Does she work?

No one will take away your fear here.

I unfortunately have to agree with nordanney on this.
Where do you have these high expenses?
Other loans running?

For the €250,000 loan, you can expect to pay about €1,000 monthly. Possibly even less. But with a net income of €4,000, you should have at least €2,000 left each month. If your wife also earns something, or you already know that your salary is guaranteed to increase, then why the fear?

Ha, I can only laugh at that. As a civil servant with that salary, I would just lean back relaxed. And then there's the equity.

I also see the problem more on the expenditure side. Blowing 3000,-€ every month - that's already hefty. Ok, Bavaria - you probably can't get by that cheaply there, but it's still intense.

If you have such bumblebees, maybe you can build a bit smaller, or is that not an option? How are the 500T euros split up?

Before I join the chorus of nordanney and Der Da, just to be sure, one more question:

Are the 900 euros that remain including the rent currently being paid or is this a pure savings contribution? I can't explain what you pay 3,100 p.m. for. For us (4 people - children 3 and 1) the income situation is similar including child benefit and parental allowance - but despite > 900 euros cold rent we are usually able to save between 500 and 700 euros.

Therefore, I suspect that you have not taken your previous rental expenses into account in the 900 euros.