What house construction options are available under these conditions?

Hello everyone,

I have been quietly following along here for some time (without an account) since my wife and I recently got married and are now slowly moving towards further planning. Although you read many hints about other people's situations in the forum, I find it difficult to apply that to us in order to assess what is possible / reasonable for us. I'll work my way through this questionnaire a bit ( )

Oh yes, maybe interesting to know beforehand: We plan to build / buy a house. A condominium would also be an alternative, but in my opinion - based on what I have already read - there is not too much of a cost difference between a house and an apartment. And the difference that does exist is offset by the fact that I won’t have to "deal with" other parties in the building. So you could see it as an investment in our mental health. But let’s get started...

General information about you:

[*]Who are you: Married couple, recently married.
[*]How old are you: 31 (m) / 30 (f)
[*]Are there children? No
[*]Are children planned? Yes, 1-2. Still uncertain but also in the near future <2-3 years
[*]What do you do for a living? IT (m), team lead (f)
[*]Are you employed, self-employed...: Both employed
[*]How many hours do you work? Variable but fixed income (m), 40 hours (f)

Income and asset situation:

[*]What income do you have (gross/net)? I’ll stick to net: ~3600 (m), ~2200 (f). It should be noted that my wife receives a very variable bonus twice a year and may get a salary increase soon (to about 2700). However, the calculation should be based on the current and monthly figures.
[*]How much child benefit do you receive? No children, no money
[*]Other transfer payments such as parental allowance, sick pay, etc.? None
[*]How much equity do you have? About 45k immediately accessible, about 12k in ETFs and another approx. 7-8k in tax refunds that we have been postponing for years
[*]How much equity do you want to put into the house project? That’s already the problem, no idea. As much as necessary to get the optimum financing and as little as possible to keep a buffer.

I’ll shorten the entire expense list as follows:

912 (m), 850 (f) - however, this also includes (in total) 400 euros savings into ETFs, 475 euros warm rent and 69 euros electricity. It would be possible to reduce the Riester pension (if needed) (a house is also a form of retirement provision?), the current total contribution being 350.

Now the question: what makes sense, how much would a bank lend us at optimal conditions, how much equity would be necessary. How much of our net income should we plan at most for this (interest + repayment + incidental costs)? Please excuse me if elementary information is missing, feel free to ask, I’ll provide it immediately.

Best regards & many thanks in advance
vertigo

How much equity do you want to put into the house project? That's where it starts, no idea. As much as necessary to get the optimum in financing, as little as possible to have a buffer.

Equity is important, so right away the question, how much equity is available? That decides the interest rate. Will it be a 100%, 80%, or 60% financing.
Otherwise, the salaries are good/excellent. But often it is the case that in such areas the plots have their price. So, how does it look with plots?

Regards

Well, I would do it differently. What does a house or condominium cost in the region? And then break down what equity I have, what the loan costs me.

Equity is important, so here’s the question right away: how much equity is available? That decides the interest rate. Will it be a 100%, 80% or 60% financing.
Otherwise, the salaries are good/great. But often, in such areas, the plots have their price. So, what about the plots?

Regards

I’ll quote myself:

[*]How much equity do you have? About 45k immediately available, about 12k in ETFs and about 7-8k in tax refunds that we’ve been postponing for years
[*]How much equity do you want to put into the house project? That’s where it starts, no idea. As much as necessary to get the optimum for financing, as little as possible to keep a buffer.

Regarding the plot prices, I think you can reckon with 300 euros per m² (fully developed). That was at least the price set by the city for a current new development area – but that was not an option for us because the development plan only allowed semi-detached and terraced houses. By "not an option" I mean building ourselves, since we would first have to find a second family for that.

Then I'll build a fantasy house now, okay?
Plot 500sqm * 300€ + additional costs = 160k€
House 170sqm * 2000€ = 340k€
Large garage OR basement = 40k / 60k ~ 50k
Additional building costs + ceiling + floors + buffer + exterior = 40 + 15 + 15 + 20 + 20 = 110k€
Total = 660k€
To finance 610k€

With a 20-year fixed interest rate it comes to:
2.11%/year
2100€/month
+ 350€ additional costs
= 2450€/month

And after 20 years there is still a residual debt of 300k!

1/3 of your monthly income = 1933€
And from here it hurts.
Personally, I would save until you break the 80% threshold and then build.

Hope I could help a bit
(everything subjective - there will be people who say "this is all calculated too expensively" etc.)

At 600k with the income before family planning, it is tight. What helps you if the bank says 500k without pain and you cannot build