Assessment of financing for the purchase of a single-family home

Dear community,

finally the time has come. We have found our dream house. Unfortunately, we cannot get a Z15 because we own an apartment and it is slightly too large. Now we have the following financing plan and would be grateful for comments and critical opinions.

We intend to purchase a single-family house built in 1960, 170 sqm living space, 616 sqm plot. Cost 547 thousand euros, approx. 605 thousand including incidental acquisition costs. We plan 55 thousand euros for maintenance. The house is very well maintained and in excellent condition for its age. Necessary maintenance was always carried out immediately, heating and windows are new. We are renovating 2 bathrooms (not included in the maintenance budget, will be done through gifts and own work). The 55 thousand is planned for painting, new floors, some electrical work, new radiators. Essentially nothing needs to be done, one could move in very well at the moment. What we are doing is all "taste-related" measures.

The capital requirement is therefore around 660 thousand euros, we bring in 260 thousand in equity as the apartment will be sold, 400 thousand is to be financed.

The conditions: he is the sole earner in a managerial position, secure job, prospect of power of attorney within the next 2-3 years, 34 years old, salary 13 times €3,800 net, +2.5% annual collective wage adjustment.
She, 32, mini-job €230 net, + 3 times child benefit
Ages of the children: 3.5 and 7 years.

Planning possibly a 4th child soon. Therefore, we want to keep the annuity as low as possible.

Offer:

€325,000 fixed for 30 years at 2.50%, 1% repayment
€50,000 KfW for 10 years at 1.35%, 3.5% repayment
€25,000 for 10 years at 1.50%, 2% repayment
Annuity €1,223

We want to be absolutely flexible, we are not putting all our equity into the financing, keeping €30,000 back for emergencies. 2 cars are paid off.
We want to repay the remaining amounts of the two small loans immediately after 10 years.
The large loan offers special repayment options of 10% annually as well as adjustments of repayment from 1 up to a maximum of 5%.

We want to focus on raising the children first, we do not have the absolute goal to repay the sum within 20-30 years. In the worst case, we will downsize again after 30 years although we do not expect that; residual debt without early repayment of the large loan would still be €180,000 after 30 years. Currently only one of us works. In the long term, at least €1,000 net from her will be added. An inheritance is also to be expected during the term. Parents on both sides are wealthy.
I think the key point is our good equity, otherwise the plan would rather be discouraged, or what do you think?

Thank you very much for your opinions!!

Phew, 660 for 1960. Can't you build new for that instead? Karsten

10% special repayments really cost money and are BS. When will you have 40 kilos in a year? Even 20 kilos per year (so 5%) per year you first have to manage.

Sometimes I wonder how people come up with the idea to do something like that.

We have been searching intensively for 2 years. Applications for plots are only receiving rejections. The location is prime. Mid-elevation right in the city. Plots on the outskirts start at 300 euros per sqm. In the city easily 500 euros per sqm but there is nothing! The house was originally built by the then head of the city building authority (architect + engineer), his widow is now selling it to us. We had an architect with us during the viewing, he was impressed by the condition, he said he had never seen anything from this period in such excellent condition. His assessment as well as the location were decisive for our decision.

Nothing has been done yet. The special repayment would probably be automatically included at 5%, and there would be the option to "exchange" this to 10% provided that no special repayments are made within the first 5 years. If this choice basically offers around that, then I will also make use of it. Can one then also say in reverse that 2.50% over 30 years is bad, "really costs money"?

You are not going to repay 40,000 euros early in life...(to one)