When to build a house? Interest rate / equity ratio

Morning folks,

I, just turned 31, am planning to build a house on a plot of land owned by my parents. The land is technically located in an outlying area (2 km away from a town of 42,000 inhabitants in Lower Saxony), but it can be built on due to a municipal decision, as long as you are a direct descendant of the landowners.

What a thing. Personally, I would submit a building inquiry to check this. Don’t want the district office to pull the plug on this.

Hello, have you already found out what a dream house might cost for you? Since the plot of land is equity, I don't see it so negatively. In another thread, someone is financing 450k with 2,450€ net income...

Considerations regarding the price would be the next step. I haven't read the other thread, but I probably won't be able/willing to finance in such a relation.

Are you building alone, or both of you together? Then the typical things begin with gifting, distribution of shares in the land register, etc. How much is the plot worth? That counts as additional equity. Your girlfriend is still studying. Is your dream also her dream? Does she like living far away from infrastructure in the countryside? Personally, I find it extremely lonely about 2 km BEFORE the city. Can she work nearby? If your girlfriend wants to join, I would maybe wait until the end of her studies, then she will have an income. The bank only counts the current actual situation. An inheritance doesn’t count at all.

I have no idea how much the plot is worth. I was not aware that it counts as equity. I will find out. Yes, we have the same dream. By bike it takes about 15-20 minutes, by car 10, and you reach a bunch of schools. It is not as remote as you make it sound. Thanks for the hint regarding the situation. So you don’t think that speculation on rising construction costs in the future is justified. It does not belong to me, it would be a gift from my parents (tax-free under 400k [?]). Regarding the land register and the distribution: there will surely be a thread about that.

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Okay, it seems to get tight with income. I note that and thank you for the insights.

There's all kinds of things. Personally, I would submit a preliminary building inquiry to check that. Not that the district office pulls the plug here.

I or my family were completely baffled too. I suspect (!) that the explosion of land prices triggered something due to the immediate vicinity to VW. Yes, of course formalities will be taken care of beforehand.

How certain is it that your girlfriend and you will also be deployed near your property?

Due to our combination of subjects plus school type, very high. If necessary (in case I do not apply for promotion or it is not granted) I would, for example, commute 30 km to my current position. But I am confident about that.

I think that's doable. 350K€ for a house (140sqm) with garage and additional construction costs without a basement should be possible. This amount should also be financeable with the income and civil servant status. Equity with the [Grundstück] and the 20K€ is already available. I would start immediately if the requirements are not too high.

I am just gathering ideas:

Being active - as a teacher (!) - I guess the big city is Pisa