When is building a house worthwhile?

Hi André,

good grief, I knew geographers earn lousy wages but this lousy?!? That’s barely minimum wage level! The guys who sweep construction sites at our company get paid more…

15 km from Ingolstadt and the value of the land doesn’t sound bad either, you could always get rid of it in an emergency.

Only the house size I would still think about a bit. €400k is about the 200 sqm league. That’s quite something! 175 sqm and €350k will probably do as well.

Then there’s the question of when to build. Your problem will be that construction costs are currently continuing to rise steadily. In the housing league you want to build in, you can easily expect annual price increases of €10-20k for the same house. In other words, the additional equity you save up will largely be eaten up by increased construction costs. So additional saving doesn’t really help.

Therefore, you should act sooner rather than later.

Best regards,

Andreas

Hi,

the situation is obviously great as a computer scientist. But I also think 400k is way too high. Especially because you really can't count on your girlfriend's/wife's salary. I would recommend you take out a maximum of 250k credit, better 200k. You should definitely be able to pay the loan on your own and support your family.

Moreover, I think it would be better for you not to wait so long with the construction. No one can say how the interest rates will be in 2 years, but currently they are extremely low. And construction costs are always rising as well, for example next year, because then Kfw 70 will be the minimum standard that must be built. In 22 years, it could possibly be Kfw 55 then....