Bury, fill in, set the house skillfully and plan the outdoor area so that as little as possible has to be removed. That is why I would have set the house further forward.
Your budget is nowhere near enough. Recently, someone even had a terraced house with about 2,500 euros per sqm in Ingolstadt. Without any special nice-to-haves.
Your budget needs to go up significantly and you have to build significantly smaller.