Construction financing: Is building a house possible? Please provide an assessment

Exactly that is the problem. You are making assumptions here that are completely obvious to you. Absolute nonsense. For what reason does one have to furnish everything completely new immediately?! I still understand the kitchen, but it doesn't have to cost 10k. You apparently absolutely did not understand what I wrote, and that exactly reflects the fundamental opinion here! Everything has to be new and everything has to be equally upscale!!! I have already seen that the OP only wants to build in 3-4 years... but what qualifies you to make such a prognosis here? Construction costs have increased in recent years, that's true. But interest rates have also fallen at the same time... what happens if interest rates rise again (as is currently slowly the case)!

Ok, I’ll try to be objective...

Everyone here is making assumptions, you too. Who says they don’t have to furnish everything new?

The OP asked for assessments. That was mine. It is based partly on professional experience, personal experience, and also on what has been read here. What the OP takes from it is his own business.

The OP provided some information and that is what I oriented myself on. And I at least tried to present that in a comprehensible way. Since we don’t know more, I always assume an average case. And the average does not take the kitchen with it, buys some furniture and has a few other expenses.

200,000 property + 5% property transfer tax = €10,000

Equity gone. Not even paid the notary yet.

Do a counter calculation as you think, how the OP builds a house with the stated conditions and €10,000 equity.

Well, once again I was right about the tax classes, well, they are freshly finished. But let’s be honest, 700k financing with part-time work and a child is a no-go. Even 500k would give me stomach aches. The question is what existing properties cost in BW. The burden is simply calculated. 500k at 4.5% interest and repayment (optimistic calculation) with a high remaining debt at the end... That would already be 1875€ annuity per month alone... can one want and can one do that? I’d say rather not

I am with the invoice with you, however, there is no property yet, so still some time to save. One really doesn’t need to discuss the 1.5% notary fees now. By the way, the kitchen is also not an item that is immediately due. The only question the OP should ask themselves is whether they can afford 500+ k or want to tie themselves down. Even if it was unobjective from me. Such a forecast can be both pessimistic and optimistic – maybe the OP will find a newly founded reputable company that seeks contracts “cheaply.” Furthermore, they might also find a property for slightly less than 200k.

In your place, I would first consider exactly how the family planning should look. That is, who will stay at home for how long and how much income will still be available to you. This must form the basis for financing. After parental leave, one could then plan to increase the annuity. But please plan carefully, for example, I don't know anyone who hasn't stayed at home longer than originally planned. Everyone extended because they really couldn't bring themselves to put the child in daycare at 12/18 months. Or the planned 30 hours with a daycare child were unimaginable and they started again with only 15/20 hours. You simply cannot estimate this in advance, so don't plan too optimistically.

You would be willing to stay at home. Would your wife be willing to forgo that?? My husband would have done the same - earlier I found the idea quite charming. When I became pregnant, however, it was completely unthinkable to go back to work after 8 weeks. I really don't know any woman for whom that would have been an option. And there are quite a few for whom it would have made more financial sense the other way around.

No matter whether one believes it is financially feasible or not: If even two decent salaries are no longer enough to put up a house in a rural area, then something has gone seriously wrong in this country and a little construction child allowance won't be able to fix that anymore! If this isn't a bubble, then I don't know what is...

(I sometimes wonder how my displaced (= 0.00 equity) grandfather, as the sole earner working in a factory band with a wife and 5 children, managed to afford his 150 sqm own home with a full basement and garage on an 800 sqm plot and what he would roughly need net today for the same undertaking...)

Whether one agrees that it is financially feasible or not: if even two decent salaries are no longer enough to put up a house in a rural area, then something has seriously gone wrong in this country and you won’t be able to fix it with just a bit of child construction allowance! If this isn’t a bubble, then I don’t know what is...

(Sometimes I wonder how my displaced from home (= 0.00 equity) grandfather, as the sole breadwinner bandworker with a wife and 5 children, managed to get his 150 sqm home with full basement and garage on 800 sqm of land and what he would roughly have to net today for the same undertaking...)

Off topic and I don’t know from which time we are talking about but just a few points:
Post-war period = land cost nothing and also provided a lot more
Building often meant spending 1-2 years every minute you were not at work, or sleeping on the construction site.
Everyone you knew helped
No energy saving regulations
Different lifestyle, different definition of basic needs
During the economic miracle in Germany, you got a decent salary increase and every overtime hour was paid...