What loan amount is realistic for house construction?

Hello,

My girlfriend (24) and I (27) wanted to know roughly what we can afford according to your assessment.

Net basic salary combined 3800 euros net (both holiday and Christmas bonuses (full 13th month) not included in this sum)

I have 2350 net – due to a family situation, the house can on paper only be built/financed by one person/me. She is officially not allowed to own any assets. (Support for parents) I don’t want to go into detail about this, it just is that way.

Her net income will not increase much in the next few years – mine, however, will, but it is hard to estimate – probably around 2600-2800 net in 3-5 years. (Same tax class)

My girlfriend would like to contribute with a separate loan/savings contract currently with 1,000 euros balance with about 25,000 euros. This should be possible without specifying the exact reason. (Planned for interior finishing)

We have 2 plots of land in close consideration: one approx. 900 sqm / 70,000 euros (incl. tax, notary, land register entry) and the other 1000 sqm / 100,000 euros (incl. everything – fantastic location) – location Bavaria near a small town.

Currently, we have 40,000 euros liquid equity – our expenses together are 1500-1700 euros per month for regular expenses. (Determined over 14 months, phone, insurance, fuel, rent etc.) In case it matters, we pay 400 euros rent including utilities – which are already included in the 1500-1700 euros.

Current savings rate on average 1500 euros – we currently live well – no children – vacation twice a year – occasionally treat ourselves – other purchases (tires, wear parts) for the car and repairs I do myself as I originally trained as a mechanic.

We are aware that when a house build is due, we can only go on vacation every 2-3 years and generally have to cut back a bit. We are both very disciplined and this is worth it to us for our own home!

The plan is a single-family house of 150 sqm with a spacious garage of 70-80 sqm with an attic for storage – no basement.

Is it sensible to start building only once we have paid off the land, which depending on the plot could take a while, or could we theoretically start already next year? I am a bit torn on this.

So we would like to pay off about 1000 euros/month in installments so that including additional costs we can plan very generously for the house 1500 euros/month. (Current savings rate 1500 euros – the 300 euros rent would then also be saved and can be set aside as reserves)

I think the house will cost us 300-320 thousand euros – we don’t want luxury fittings – simple electricity (no smart home) and heating. (Wood stove living room + gas or oil)

In addition, I only want to have the shell construction done including roof and windows/doors – the rest we want to do ourselves. (My father added to/doubled his house in the last few years almost entirely by himself)

You can do financing for max 30 years, right? I want to keep financing as low as possible and make better use of special repayments. (I know it’s easier said than done)

What loan amount would I roughly get with my net income? (Please exclude my girlfriend completely)

Thanks and best regards
Michael

2350 net? That’s absolutely nothing..

Single-family house 150sqm with a spacious garage 70-80sqm for 320k? Also: Never..

And from which money is the land supposed to be paid?

Have an offer for the shell construction including windows and roof for 220k euros. Friends built in the same city for a similar price with the same construction company one year ago.

We have 3800 euros net - however, for the calculation of the loan installments we can unfortunately only take my salary - which is the maximum possible...

2350 net? That's not nearly enough..

The bank will deduct about €1,400 from that for living expenses. The rest remains for the installment. The house you planned will not be financially feasible with that.

P.S. Why can't your girlfriend be brought on board? Support for the parents can't play a role, as there are sufficient allowances (for example, owner-occupied property). Besides, as a co-owner, she doesn't have any assets; it will be a zero-sum game against the financing. With a bit of luck, she might even be worse off than now. You should clarify this in advance, because you won't manage it alone.

We have an offer for the shell construction including windows and roof for 220k euros.

+ Plot + additional costs + interior finishing (there are only electrical, sanitary, heating, screed, plaster, floors + walls, bathrooms left...)

The bank will deduct about €1,400 from that for living expenses. The remainder is left for the installment. The house you are planning will not be financeable with that.

P.S. Why can’t your girlfriend be brought on board? Support for the parents cannot play a role, since there are sufficient exemptions (such as owner-occupied property). Besides, as a co-owner, she has no assets; with the financing against it, it will be a zero-sum game. With a bit of luck, she might even be worse off than now. You should clarify this in advance, because you won’t manage it alone.

That roughly fits if about 1,400 is deducted from my 2,350 — then I would have to get a loan of nearly €1,000 alone — and my girlfriend is supposed to be left out — once the house is counted, it is her asset and she might have to give some of it away under certain circumstances — we never want to consider/come into that situation.