Consideration and feasibility of buying or constructing a property

What do plots of land cost with you? Maybe you also have access to cheap state loans (in Bavaria, for example, the Labo).

Our house with medium features and KfW 55 at 130m2, including ancillary building costs + garage, cost around €300,000.

In addition, there was the kitchen with just under 10,
and now the outdoor facilities with just under 20 and, of course, the plot of land with around 100k.

The starting point for us is similar – at the end of 2016, at the time of taking out the loan, interest rates were at an absolute low, and we were able to secure a large part of our loan long-term and relatively cheaply:
100k KfW for 20 years at 1.5%
140k Labo for 30 years at 1.75% as a full repayment
40k Labo for 15 years at 0.5%
60k Commerzbank at 1.1% for 10 years

All in all, we now pay about €1200 monthly in installments with a similar family income.

Since you want/have to build bigger, I imagine that is quite ambitious.

You do realize that interest rates for both KFW and regular bank loans are currently higher? The KfW with 20 years fixed interest rate and 30 years term is currently just under 3% :-)
The note about state funding is good!
But you yourself are already at €430k for one housing unit.
And the original poster needs 2 units.

The prerequisites simply aren’t given. Grudgingly and with a lot of worries, maybe one housing unit.

You don't have to rush to buy a property at all costs. Wait at least 5 more years, then the fixed interest periods will slowly expire. Then you can buy good existing properties that have fallen into the interest trap with even more equity.

You do realize that the interest rates for both KfW and regular bank loans are currently higher? The KfW loan with a 20-year fixed interest rate and a 30-year term is currently available at just under 3% :-)
The note about the state subsidy is good!
But you're already at 430k€ for one residential unit.
And the OP needs 2 units.

The conditions simply aren't met. Gritting teeth and with a lot of hesitation, maybe one residential unit.

I did mention that it was the absolute low point for interest rates here.

I'm also aware that interest rates have risen quite a bit by now.

However, since the Labo goes into the second rank, the bank financing in the first rank should still be able to offer good conditions.

I just wanted to give a practical example.

We have already built quite cheaply. And with your salary, I would really have concerns. If I were you, I would calmly look at existing properties. If something good comes up, then grab it. Otherwise, keep saving for now and see how things go with the second child. If you then find a nice house in 5 years, you might have saved a total of €100k by then. That makes financing much more relaxed, and you will know where you really stand financially.

An existing property does not have to be priced at 500,000€. Admittedly, we live in a relatively small district, where there is a kindergarten but no school or shopping facilities. However, these are located about 3 km away, and there is a dedicated school bus. It takes me about 20 minutes by car and 45 minutes by bus to get to the state capital. The standard land value was 125€ at the time of purchase, so quite affordable. We bought a house there with little to no renovation needed, which is well below 500,000€. For 2 separate living units, the layout is somewhat inconvenient, but with 220 m² plus a basement, it should also be suitable for 5 people. Unfortunately, your budget will probably still not be sufficient for this.

We also looked at many properties, including houses that were significantly cheaper but in need of renovation. We even shortlisted 2 of them but ultimately decided against them because we couldn’t manage it time-wise. If I had more free time at work and my wife weren’t absolutely against it, we probably would have gone for it and certainly ended up below 300,000€. There is, of course, a certain risk involved, and you have to be willing and able to work on the house for 1-2 years. With a child, however, I imagine that would be very difficult. Unfortunately, nowadays it is very hard to get a fully renovated house for less than 350,000€.

Super, thank you very much for the many tips and opinions.

We are currently in a really difficult time and somehow also in a bit of a dilemma.

Let's see what the future holds for us