(Unfounded) fear of monthly burden?

Hello

During the planning and execution phase, one already starts to think about things. I will report to you about the move-in from autumn!

By the way, a vacation for this year has been canceled since yesterday.

I only wrote about the vacation metaphorically

... My problem is that, first of all, I can hardly estimate what financial means are needed to build a single-family house with about 170 sqm (medium equipment) and I don't want to rush into an adventure.

For that, you can wonderfully read up here in the forum

... I would also be interested to know if you also made so many thoughts at the beginning (planning phase) and whether (after some time...) these "worries" were rather unfounded.?

Of course you think about it. I am also a little safety fanatic* and am reluctant to plunge into cost-intensive projects.
*Probably that’s why I ended up in the public sector
But precisely this situation and my husband’s tenure provide huge mental security and thus minimize some future worries.
Additionally, I have been in the professional and salary situation for over 20 years, so by now I can estimate how expensive life is and what is doable monthly without looking at the bank statement.

If you look at the key data of other prospective builders in other "financing threads," you will see that your fear with the existing equity + excellent salary + additional income wife + civil servant status is completely groundless.

In this sense: Helau

Hello,

I don’t like to be the spoilsport. Of course, you can look at what I get on the market for a 1000 € installment. But I wouldn’t adapt the building size to the loan; instead, I would analyze what space / features I need. You should never primarily be driven by money.

I see it differently - due to my profession - and in this point I agree with the user "Dirk Grafe"; I would even go so far as to say that this is the only viable way.

Am I really too cautious?

No, in my view rather not. However, 170 sqm of living space is also quite a number that needs to be paid for. That raises the question for me whether it really has to be that much; and whether you have an idea of what 170 sqm/Living Space means. In this point "HilfeHilfe" is right again; clarifying the room program provides relief.

I would like to strongly recommend you have a conversation with an independent financing broker you trust and talk to him about the maximum you / you all can bear. When you have this number, deduct a part of it that really should be reserved for emergencies. Then subtract the costs of the plot as well as the typical additional construction costs, and then you know exactly what your dream house may cost.

This recommendation:

... defensively calculated including equity approx. 450,000 €. From this sum you deduct 10-15% as a buffer and tell the architect that you want/can spend 375,000-400,000 € including the plot.

should not lead you to assume that architects or house sellers are stupid people. They are definitely not; I do not know any architect or seller who is not aware of this approach by potential home builders. This ultimately leads to plans often being made larger - and thus also the price in the bottom right, because the architect / seller acts according to the motto "he has more money available than he wants me to believe". This is an endless spiral and I by no means tend to place the blame - if you want to call it that - exclusively on the side of the architect / seller.

I always appreciate an open conversation. When a prospect comes to me and says, "this and that" is my idea, "this" is my budget, and "that" is my iron reserve, I know where I stand and can plan accordingly. I also have no problem talking a prospect out of some things that I know he cannot handle; which might be economically nonsense. But for that, a basis of trust must exist, otherwise I can save myself the effort. That does not necessarily mean that I can also win this prospect as my customer - I am rarely the only contact person; but it makes the talks more pleasant and leads to the goal. Nothing is worse than that unconfirmed gut feeling "I am being lied to"; that silently degrades me to the willing idiot who is unfortunately needed for house building. A temporary partnership on equal footing looks different, because that is what building a house means.

Ownership also means a form of restricting the quality of life.

I fully agree with that.

Rhenish greetings

Hello Hausmeister13,

I know the described problems well. So first the positive side: of course you can build with the available income and can afford the construction. Regarding the procedure, as I recommend to my clients:

[*]Take your time. This is probably the biggest investment of your life and you don’t want to buy a book or a tie, but you want to have a house built in which you, if all goes well, which I sincerely wish for you, will live for the next 50 – 60 years. During this time your children will leave the house, perhaps come back, start their own families and visit, but most of the time you will live there alone with your wife.
[*]Carefully consider how much space you need. This is the first and most important step. You write that you live rent-free in your parents’ house, but the situation there is now borderline too tight. So think about how much space you currently have and how much more space you actually need. Here you should under no circumstances be guided by colorful brochures with huge living rooms and bathroom landscapes, be honest with yourself. Building a house is not wishful thinking, it’s how it is!
[*]Once you have determined how much space you actually need, consider how large the plot must be. This is already done with you, 650 m2 I find in any case sufficient for children and your own needs.
[*]Once this is done and you are clear about your own needs over the usage period of the building (please consider that your children will leave the house again in a few years), then go and talk to the bank you trust. Afterwards, of course, also with other lenders. Until you have clarity about the amount to be financed.
[*]When this is done, think about the equipment of the building. A PVC plank floor in the living room, for example, is much cheaper than real wood planks. A hollow core door is simply cheaper than a solid wood door. Be honest with yourself here as well and if possible do not let colorful pictures guide you, but insights gained through non-destructive reflection.
[*]Now find an architect who implements your ideas without wanting to realize themselves. Remember, it is your money. For planning costs, the fee structure for architects and engineers applies as a billing basis; this is binding price law in Germany, so you can assume that the choice of planners should primarily be determined by the quality of the planners.
[*]And when you ask how much a house costs, I ask: how much does a car cost?

And another piece of advice: keep records of your expenses from the start and do not be dazzled at the beginning by the large amount of financing and the many smaller expenses; in the end the money is gone. And if you exceed your set budget on individual trades and services, you must try to compensate for the shortfall elsewhere. A house is, in most cases, more expensive than planned and this is not always due to irresponsible planners and contractors exploiting poor clients and taking advantage of them. But often also due to the naivety and lack of information of the clients.

A very important point, which is massively underestimated again and again in budget planning, is the exterior facilities. They are not free, not even in own labor.

But your published finances will definitely be enough to fulfill your wish for your own house. Good luck with that.

Expenses usually increase linearly with income. For us, it was even disproportionate. Unfortunately.... We lived very well. The kitchen often stayed cold at home... and at least once a year a big vacation (Hawaii/USA/Bali) etc. In addition, skiing, sometimes a weekend away. That already costs money. So, from a large net income, not as much is left as there could actually be... But the positive thing: When it was decided that we wanted to build, it released a lot of "energy." And you wouldn't believe how fast the equity increases or how "easy" a payment of 1.5 thousand euros or more actually is. Without major restrictions. Vacation is still possible. Only no longer in business but economy class. And not 5 stars etc. So really keep a household budget and then it works.

Yes, it is quite astonishing what you suddenly don’t need. And which sweater or pair of shoes will suddenly last another season.

We were amazed at what you can do without and still not feel like it’s impossible without this or that.

Sylvia