We want to build .... is that possible?

Hello dear forum users,

I am new here and have already been diligently reading the forum for the past few days. It’s great that so many of you share your experiences and also bring to light all the negative aspects of building. That has helped me take off the rose-colored glasses a bit and engage more concretely with the idea of building.

Briefly about the situation: we are a household of 3 people.
Our dream is to have our own home. Due to the current interest rate situation, we would like to implement our plan and build.

Now the key data:
I hope that if I write this, some of you will still keep reading and give us a bit of courage that we can realize our dream. So we have found a plot of land for 55 T€.
Our total budget is 250 T€.
That leaves 195 T€ for the house.
With this, we want to cover everything. By everything I mean turnkey including incidental building costs, etc.
The only extras would be floors and wallpapers. Everything else should be covered by that.
Our idea is 135 sqm with 5 rooms.

We have not yet taken care of financing, as these are, as mentioned, the first steps in that direction. There is no equity. Based on our creditworthiness, I would say we are very well positioned. I think we can afford a monthly rate of 900€ if you then plan operating costs of 250€. This with 1% repayment. We would increase this to 2% after 5 years.

1.) My first question to you: is our budget far too tight to build? Can we even afford to build? Should we rather go for an old used house?

2.) Financing completely without equity? Does the bank even agree to that? Are things like incidental building costs and bricks also financed?

Many thanks for all your answers! I am very excited and hope our dream does not completely burst. Thank you!!!

Hmm. At 1.00% repayment, you will be paying for 40 years and longer.. In my opinion, your budget is set too low. You still have to pay property transfer taxes, notary fees, etc. Take a look at the breakdown of additional costs from [Bauexperte]. And of course, the bank will ask: .....why haven’t you saved any equity so far? If a 900,- EUR installment would be possible....

The budget is really very tight. Something like that can work, but it can also go badly wrong.. We only have a budget of €270,000. However, the key data must fit. Very important, what will come up for you with the plot of land. We have an earthworks specialist in the family who took care of everything. We had to build up over a meter. That was then at a special family price. Then we decided on a small house. 118 sqm of living space. That is enough for us. I am very particular about budget limits, etc. So far, we have not exceeded the plan on any item. Everything is going very well so far. But we had the advantage of being able to plan with the company for 6 months without signing anything. That means that we pretty much picked everything from sanitary to electrical to doors, windows, and and and before signing the contract. That provides more security. I see your monthly budget a bit more critically than the previous speakers. I think €1100 per month for repayment should be it.. you see, it’s all quite complex. So it is possible to build a house with a small budget. Only then you have to plan and calculate all the more.

Hello,
kitchen, fixtures, notary (land register etc.) and real estate agent are not financed. So all this has to be paid out of your own pocket.
100% financing almost only works for civil servants. But just ask your house bank and make an appointment. Then you will know more.
Good luck!

1150 is the total budget for everything per month.
195k without equity does not get you below 4%, with 1% repayment (which is anything but healthy) that makes 9750 euros annually, thus 812.50 euros monthly.
however the house may effectively cost....can we manage with 1150 euros.
BUT: without equity, 1% repayment at low interest rates. NO WAY

The term is somewhere around 40 years.....if the interest rates, I assume a term of 10 years here, at follow-up financing, which is likely, are higher....good night.
there is almost nothing repaid, around 10% of the loan amount, and the follow-up financing will then be expensive.

let's say the remaining debt is 175k and the interest rates are at the average of the last 10 years, thus 6%, then the cost (again 1% repayment):
1021 euros plus then applicable incidental costs, let's say 400 euros.....1421 euros

that will be a problem.....at the latest with temporary unemployment or a child.

at today's interest rates, I would not do any financing below at least 2% repayment.
from day 1. Extra repayments on top.

I can only agree with the previous speakers regarding the repayment etc. But concerning the total costs, it might be helpful to know where he wants to build. Differences have to be made here. And what kind of house. In S-H, for example, it should definitely be possible to build a house for 250 TEUR. (quite certain even)