We are thinking about buying a plot of land

Our equity currently amounts to 82,000 euros. We save at least 1,000 euros per month, usually more. Our bank advisor said that for about 220,000 euros we would have to cover a rate of 800 euros. Which is not much, since we currently have a cold rent of 951 euros. So for house + land + ancillary building costs 300,000 euros. Best regards

Hi Yaso, I can only write briefly now and will currently refer to the few data you received from your bank. 800 euros per month for 220,000 results in a monthly annuity of 4.37% (interest + repayment). Surely KFW funds have also been included here. However, with a 4.37% annuity, I can't shake the feeling that you 1. will have a short fixed interest period (10 years) and 2. a very long term. My assumption regarding the term is 35 years for Kfw and > 40 years for the remaining loan. You should rather work with a long fixed interest rate, so that in e.g. 10 years you do not risk having to pay significantly higher interest rates. Also, you want to eventually be finished at some point. Therefore, the term should remain manageable (as far as one can say that for a house financing). That means if you choose an annuity of about 6.00% (the often mentioned 500 euros monthly rate per 100,000 here), you would be at about 25 years term. For 220,000 this should be about 1,100 euros monthly burden. With your monthly free means of 950 euros cold rent + 1,000 savings rate this would be easily manageable. However, you should have a precise calculation of how much you need for house construction + ancillary costs. It also seems a bit too little to me (just taking the rule of thumb 1,500 euros per sqm with medium equipment = 130 * 1,500 = 195,000 without ancillary costs, outdoor facilities, painting and flooring work, etc.). Regards f-pNo

Hello everyone,

I had mentioned that I would at least share what came out of the offers.
I don't want to withhold these from you, even though it was a while ago :)

Back then, we requested 2 offers, where we had all special requests included. So really everything, except for a garage... (which was supposed to cost just under 18,000 euros for both)

The first offer was for a 125 sqm house, turnkey, including special requests, it was supposed to cost just under 189,000 euros.
Excluding land, acquisition costs, ancillary construction costs, and landscaping.

The second offer was a sort of city villa, about 132 sqm living space, 225,000 euros. Again without the mentioned ancillary construction costs.

All in all, the construction would have ultimately cost us about 360,000 euros. Which was personally too much for us.

In addition, the land was not 100% load-bearing and we would have had to invest around 8,000 euros for that.

In the end, we decided to lower our demands a bit and buy a house that does not strain us financially too much and still allows us a "good" life. Now we have bought one (built in 2007) and will move in a few months :)

Fortunately for us, the interest rates have gone down again and we secured good conditions for 15 years!

Good luck to you all with your building projects!!