Construction financing over 700k - Is the offer okay?

20 years would be enough for us, only paying half the amount over 10 years is too risky for us.

Even our pension would ensure continued financing

Yes, it is already evident that a peak has simply been reached. Even a double A13 teacher couple like here is now slowly falling out of the range of possible buyers – unless generous equity donations are available.

As DINKs, one would just still be within the limits here – with maybe €7000 net (after PKV deductions) you can still manage a €700,000 loan – barely. With no large equity, low repayment, and the attempt to quickly secure the "safe" return through ETF&Co. on the side, you notice what will probably happen here in 10 years if interest rates rise significantly. Then even civil servant status won’t help if the installments increase and today’s book values melt away.

Therefore – calculate and see if you can get your project done today with today’s conditions + fixed interest rates. You have to have almost everything done in 20-25 years. Large amounts of residual debt at certainly higher interest rates are not very nice if you have also paid peak prices for land and construction. Don’t forget, real estate prices are time-dependent on interest rates.

I completely understand your arguments; we have the same considerations, of course. Briefly about our current situation: Right now, we pay around 1500 euros rent warm, without a garden, without parking options within a 10-minute radius, and the children are not supposed to grow up in the city either.

Exactly because of these concerns (monthly rate almost half of the income), it is important to us to keep this under 2000 euros and possibly make regular special repayments. We have also already financed the land flexibly and have a construction obligation within the next five years – with rising house prices and interest rates, the time window in which the project is still somewhat manageable is small. Our retirement income would indeed ensure further financing, and starting in the early 30s is certainly better than in the late 30s. We are aware that the returns from ETFs (or, in our case, carefully selected individual stocks based on several reliable parameters) are not "safe," but even during sideways phases, the portfolio performs much more lucratively than repaying a loan as quickly as possible.