We plan to build a house

or can we afford the following project?:

My girlfriend (25) and I (26) are thinking about building a house in the near future (1-2 years). We live in Cologne and would like to focus on the right bank area towards Bergisches Land, Leverkusen, Rösrath, Odenthal, etc. From the first research on the internet and here in the forum, it quickly becomes clear that in the current situation (especially in and around Cologne) building a house including purchasing land with a budget under €500,000 is difficult to impossible. For this reason, I would like to describe our current situation and our ideas regarding the property in order to estimate whether we will ever be able to afford building a house (the way we imagine it):

The house should be around 150-180m², divided into living-dining-cooking area, guest room, 2 children's rooms, bedroom. A garage/carport should also be included, preferably with direct access to the house. In terms of style, we really like the modern half-timbered houses ala KD, HUF, Davinci, etc.

We are both employed as federal civil servants (civil servants for life/irrevocable) and each earn about €2,100 net/month (with an upward trend due to promotions and inflation-related salary increases, but not predictable).
We currently have about €150,000 in equity available. Furthermore, we both have a Riester pension running (conversion to Wohnriester?!) and a total of 5 small building savings contracts between €7,500 and €10,000 that will mature in the next 1-2 years.

Two children are planned within the next 5 years.
We currently have one car and one motorcycle. A second car is not necessary at the moment.

After deducting all additional costs such as rent, insurance, groceries, cars, entertainment, etc., we currently have about €1,500-2,000 left over. Depending on expenses incurred, although we do not pay much attention and currently basically "buy whatever we feel like." Further restrictions in favor of a construction loan are therefore possible. We have only partially kept a household budget listing expenses in the past. Fixed expenses such as rent, insurance, car taxes, grocery shopping have already been documented. Starting immediately, we will begin to record all expenses, including visits to restaurants, pubs, clothing purchases, etc. A corresponding app has already been downloaded and set up :)

Furthermore, there are 1 single-family house and 2 multi-family houses in close family ownership (all not owner-occupied). These could potentially serve as collateral for the financing. However, I have not yet spoken to my family about this and would therefore initially exclude these from consideration of the current situation. Only if financing without involving the aforementioned houses is not or only difficultly possible or if the houses as collateral would enable significantly cheaper financing, would I consider this option.

Is it realistic to finance our desired dream house with the existing possibilities?

I know that such general questions are difficult to answer, but unfortunately I do not have more detailed data and a tendency should be recognizable to experienced people.

Tips/opinions regarding the above-mentioned developers and the building style are also welcome.

Thanks and best regards

Chris

My girlfriend (25) and I (26) are considering building a house in the near future (1-2 years). We live in Cologne and would like to focus on the right bank area of the Rhine towards the Bergisches Land, Leverkusen, Rösrath, Odenthal, etc. From the initial research on the internet and here in the forum, it quickly becomes clear that in the current situation (especially in and around Cologne), building a house including purchasing land with a budget under €500,000 is hardly or not at all feasible.

I’m not familiar with the area, but I’ve been told that there is a desirable and a less desirable "living side" of the Rhine in Cologne. I assume this is the desirable side. I can’t say much about the amount. Presumably, the land would take up a large part of the budget.

The house should be around 150-180m², divided into living-dining-cooking area, guest room, 2 children’s rooms, bedroom. A garage/carport should also be included, preferably with direct access to the house. We really like the style of modern half-timbered houses like KD, HUF, Davinci, etc.

Davinci is that glass palace, as I have seen – to each their own. I prefer a bit more privacy ;). Please keep in mind that all "special features" always cost "extra money." Whether it’s a glass front or the layout (bay window, dormers, etc.) or others. You should not only focus on what looks nice but also what is practical.

We are both federal civil servants (tenured/irremovable) and each earn about €2,100 net/month (with an increasing trend due to promotions and inflation-based salary increases, but not predictable). Currently, we have about €150,000 in equity available. Furthermore, we both have a Riester pension running (conversion to Wohnriester?!) and a total of five small building savings contracts between €7,500 and €10,000, for which the saving period will end in the next 1–2 years.

Currently, we have one car and one motorcycle. A second car is not necessary at the moment. After deducting all additional costs such as rent, insurance, groceries, cars, entertainment, etc., we currently have about €1,500–2,000 left. Depending on expenses ...

I don’t know which area you work in for the federal government – but could job-related relocations be expected (which are common in the federal military, for example)? Your savings rate is sensational (with a total net of €4,200 monthly) – especially considering you afford everything you want. How much do you pay in cold rent?

We have only kept a household book with the listing of expenses partially in the past. Fixed expenses like rent, insurance, vehicle taxes, groceries have already been documented. From now on, we will start recording all expenses, including visits to restaurants, pubs, clothes shopping, etc. A suitable app has already been downloaded and set up :)

Very good

Is it realistic to finance our desired dream house with the available means?

Based on the initial data, I see the matter quite optimistically. €500,000 total budget - €150,000 equity = €350,000

By the time you want to build, at least 12 months should pass = approx. €20,000 additionally saved = €330,000. The balance in the building savings contracts will also be about €20,000 in a year (keep it in reserve for kitchen or similar).

Financing €330,000 with an annuity of 6% (interest + repayment) = €1,650 per month. You are currently saving this amount and also have the cold rent in reserve.

Now comes the catch:

Two children are planned in the next 5 years.

This will significantly change both your income situation and your expense situation. Please do not underestimate this.

Normally, people say - at least for rental apartments - that the left bank in Cologne is more popular. It might be different for plots of land. No idea...

We are not in the Bundeswehr. Transfers against our will are not to be feared.

Our cold rent is (still) 390€. Including additional costs 680€. But this will change on 1.10 (we do not yet have our primary residence in Cologne, hence the cheap rent). Then the rent will be considerably more expensive.

I also don’t know how we will manage somehow there is always a lot left at the end of the month. That suits me fine.

The children are of course a big and above all hard to plan cost factor... that is clear.
My girlfriend wants to work again pretty quickly. Part-time and telecommuting are possibly options.

Hello Chris,

others shall and will respond regarding the financial possibilities; in any case, I recommend you have a conversation with an independent financing broker. But

We live in Cologne and would like to look in the right-rhine area towards the Bergisches Land,

Cheaper land price, but high likelihood of additional foundation costs due to the terrain.

Leverkusen,

Works, provided the GSe come from the city of Leverkusen itself. Have a look at their site; even though they mostly sell by bidding, you can save the broker fee this way.

Rösrath, Odenthal etc orient.

Two of the most sought-after locations; which - honestly - I don’t always fully understand. But it means you will spend a lot of money on the land! Rösrath is actually only available somewhat in connection with existing properties; meaning the demolition costs come into play.

... building a house including purchasing land with a budget under €500,000 is difficult to nearly impossible ... The house should have around 150-180 sqm, divided into living-dining-cooking area, guest room, 2 children's rooms, bedroom. A garage/carport should also be included, preferably with direct access to the house.

The surrounding area has beautiful "kids" ;-)

Maybe in the first step you should consider whether it really should be 180 sqm of pure living space. Compared to 150 sqm, we are talking about roughly EUR 45K for solid construction; for the below-mentioned prefabricated house providers, rather EUR 60K and up.

We really like the modern half-timbered houses a la KD, HUF, Davinci, etc.

I can say nothing about KD; I haven’t been able to review their documents yet. The other two belong, however, to the best in their industry and thus also to the most expensive ;)

Rhine regards

An independent person is never wrong and will - in due time - definitely be consulted. Thanks for the tip.

I think the desirability comes from the location. It would also be perfect for us regarding the mix of connection to work and the little house in the countryside.

It certainly doesn't have to be 180. Maybe/probably you can't afford that anyway and adjust the size during the "real" planning. I first wrote down my idea. Without considering whether it is within my means.

That's why [KD]. I don't know (yet) any detailed prices but pictures suggest/fear that the two providers are not within my budget.
But asking costs nothing ;)

Best regards
Chris

Hello,

purely from the financing side, you are top-notch debtors. Civil servants, good net income, high equity that also fits the 500k acquisition.

What no one will accept is a life plan (purely financially) from the birth of the children. You will need private health insurance, daycare spots, and the wife usually only works 50%.

Here you should perhaps run a scenario calculation. But I also suspect that it will work financially.