Budget 600-800k with approx. 10k net household income?

Thank you very much for the great answer. Those are many of my thoughts and it motivates me that you have/had similar thoughts.

Here is a general update:

Hello everyone,

I have been a bit off the radar. But not because the topic doesn’t concern me. On the contrary, I have gone a bit deeper into the numbers again and have also looked at "higher-priced" properties.
I also need to clarify again that the examples and sums shown were mostly the "outliers" in the real estate market and usually had a catch. So, 600k in a B location is basically the lower end of the B location (maybe not a very nice street, very small garden, etc.) and 800k in an A location likewise. What I want to say: maybe with a lot of luck you can find something for 600 or 800k in the desired locations. But if I want to buy "off the cuff," I have to add at least 100 to 150k on top.

Now I found a property, namely a new build, which actually covers almost everything for us (especially "large location" and "microlocation," etc.). I will try to summarize:

[*]Great district (a bit further out but very popular with families)
[*](For us) great location because a very large new development area. I would hope that children play on the street there, ride their bikes and find many children to play with
[*]Many clubs etc. in the immediate vicinity
[*]New build (completion end of 2026)

Not ideal:

[*]End terrace house (basically no problem at all but given the sum, see below, again questionable)
[*]No basement
[*]Over budget and there are still costs (garden etc.)

Here are the (financial) key data:

[*]Purchase price: 880k, without painting and flooring work, without garden (but terrace etc.)
[*]Approx. 130 sqm living space
[*]Turnkey, KFW 40 QNG (photovoltaics, heat pump, etc.)
[*]Subsidized: about 2.8% via KFW 297 and NRW.Bank "Sustainable Living"
[*]Location = We would be very happy and surely a great foundation for our long-term "family future"
[*]We are not keen on the KFW 40 and QNG topic. The main driver would be the location.

I roughly tried to calculate:

Financing:
(Assuming a total requirement of approx. €960,000 including incidentals)

• Equity: €250,000

Loan (total €710,000):

• KfW 297: €150,000 at 2.8% (35 years term) -> installment: approx. €760/month
• NRW.Bank: €260,000 (maximum subsidy amount, 35 years term) -> installment: approx. €992/month
• Bank loan: €300,000 (assumed 3.7–4.0%) -> installment: approx. €1,535/month

• Total installment: approx. €3,287/month

That would be manageable. Also, you have 1-2 years of repayment-free time with the subsidized loans. At the same time, in the long term, nothing must go wrong. It’s a lot of money, and after 10 years you still have 400-500k debt.

My consideration was, calculated optimistically:

Monthly saving/investing (for repayment after X years): €3,000
Bonus payments per year to invest/save/prepay: €10,000

My calculations are certainly wrong or too optimistic. I am doing a lot at night right now and it wouldn’t surprise me if I am overlooking something.

As for the equity, we would be relatively "empty" then. Of course, in 2026 I might save something and at least build up an emergency fund and also assume that I will get a good bonus in 2026. Possibly I can still get a (small) private loan from family. Maybe 50k off the top of my head. If that even helps at all. But I would like to avoid that.

Unfortunately, I am absolutely inexperienced when it comes to new builds. We always assumed buying an existing property (and that was already a lot for me, since it was never a big topic for us). What am I overlooking? How do you see it? Too expensive? How does the release and use of the equity actually work? Do I call up the loans/sums according to the completion of the house and the loan only starts then? Or is the repayment-free time probably for this? I have to research all that again. But I primarily wonder, am I getting carried away here and are we overshooting the target with the above sum?

I think you "forgot" the costs for painters and flooring. Add at least 40k, then you're at 1 million. And that's for a terraced house?

Unfortunately, the same here. Suitable offers are scarce, and in my opinion, most existing properties are heavily overpriced. I think they are still hoping to find a "fool".

Unfortunately, it's the same with us. Suitable offers are rare and most existing properties are, in my opinion, heavily overpriced. (...)