What is possible? :) (another one)

Hello,

My wife and I intend to build or buy a house in the foreseeable future.
For some time now, I have been reading in various forums about how high the costs for an owner-occupied home are.
This raises the question for me of what we can actually afford.
We are still quite young (I think), in our early 30s and have no children so far.
I had a very long education and have only been working "properly" for a short time (previously research). :)
Our net income is divided as follows:

Me - 3200 €/month (net)
Her - 2100 €/month (net)
Total: 5300 €/month (net)

At the moment our salary is quite good (double income - no kids). Currently, we have a fixed savings rate of 3500 €/month.
In addition, we have equity of 300,000 € available.
So we are doing quite well.

If we have children, my wife will certainly not work for the first 3 years. After those 3 years, part-time.
Accordingly, the monthly installment should only be financed from my salary.

Of course, I cannot predict my salary development, but it is quite certain that it will increase accordingly.
I currently have a 35-hour week and the salary was my starting salary.

We expect construction costs in the range of 620,000 to 670,000 €.
My question: does anyone have similar key data and can share their experiences regarding monthly burden etc. with me?

Thank you!

Why are the planned construction costs set so high? High land prices? Or are you planning to build exceptionally large?

Our situation is similar and we realized a home for just under €400,000. (Grundstückspreis bei 130 €/qm) However, we did not build a basement, and not much has happened outside yet. With your income and your equity, I don't see any difficulties. If you want or have to finance €300,000, expect a monthly burden of €1,500.

Really €300,000 equity? Or is there an extra zero slipped in?

Construction costs are already very high, of course it could also be due to expensive land prices.

But with the equity in relation to the construction costs, there should be good conditions.

Why are the planned construction costs set so high? High land prices? Or are you planning to build unusually large?

Our situation is similar and we realized a home for just under €400,000. (Land price at €130/sqm) However, we didn't build a basement, and not much has happened outside yet. With your income and your equity, I don't see any difficulties. If you want or have to finance €300,000, expect a monthly burden of €1,500.

Thanks for your post. What exactly does "similar" situation mean? Would you like to say something about that – it would help me a bit more.

We would like a plot of land with at least 1600 sqm. Ideally 2000 sqm. It's not so easy to find a "large" plot. But the costs are not that high – around €150,000 excluding agent, notary, ... . Based on forum posts and conversations with acquaintances, I estimate construction costs of €430,000. If the costs are added up, that comes to just under €590k. But then I have not included furnishings or reserves yet.

Am I off with the cost estimate? I would of course be happy if so. ;) What’s important to me is that we pay off the loan as quickly as possible.

Best regards Otto.Motor

Really €300,000 equity? Or is there an extra zero in there?

Construction costs are already very high, of course it could also be due to expensive land prices.

But with the equity in relation to construction costs, there should be good conditions.

Hello backbone23,

it is €300,000. With €30,000 equity I wouldn’t even think about building or would think about it on a completely different scale.

Apparently my cost estimate for the house is too high. Land price about €150k without realtor, notary, ... .
Are there also good conditions if I have to borrow €300,000?

@DerDa: Do you also pay about €1500?
The addition to the family worries me a bit because I can’t really assess the monetary "impact".
Does anyone have data on this?

Regards
Otto.Motor

No one can tell you if your cost estimate is too high, since we don’t know your plans/wishes. :)

All the promotional offers for financing usually refer to a loan-to-value ratio of 60% at the specified interest rate. With a €300,000 loan, you are still below that. ;) So there will still be very good conditions (provided that you are “clean” ;)).