Construction financing over 700k - Is the offer okay?

If you still have 100k debt left in your early 60s, you can sell the house and maybe still have enough surplus for a nice retirement in a small apartment. Often the house is much too big at that age anyway. That happened recently in my circle of acquaintances...

That can only come from someone who has barely lived 30 years. Why should a personal claim no longer exist at 60? The house doesn’t get bigger as you get older. 150 sqm remain 150 sqm. Of course, if you plan many placeholder rooms or even a full-basement area, then I agree with you. So plan your house size as you envision it, as long as it’s affordable and meets your needs. Children’s rooms often later serve as grandchild and hobby rooms – hobbies you didn’t have with children. The personal claim usually only changes with frailty, and nowadays age of around 60 has no causal relation to that. Knee and back problems already start in the mid-thirties, and when the kids have left the house, you finally have the house for yourself and can let loose.

That can only come from someone who has just lived 30 years.
Why should a personal claim no longer exist at 60?

The right house for every stage of life. I know enough people who at the end of their 50s build once again appropriately or buy a condominium. It is paid for in cash from the old and too large house. I find that plausible.
I myself am also financing at the end of my 40s with a term of 40 years. And that as a banker.

I also preach that one should not be done with financing by retirement. A manageable remaining debt is irrelevant and leads to the fact that one can also live well while working towards retirement.

The right house for every stage of life.

That's how it is. But the comrade recommends a small hut. And that is unrealistic, which should be corrected.

When you are in your early 60s ... in a small apartment.

I stick to my point: with 500,000€ for the house, the house size is definitely not adapted to the salary!

I stick to my opinion: with €500,000 for the house, the house size is definitely not adjusted to the income!

Hmm, or the house prices have simply exceeded reasonable and unreasonable limits. I think 145m² for 4 people is not unreasonable - otherwise quite average. Actually, today one would place that in the range of 160-170m². If we calculate with rough estimates for Bavaria and the current construction development, then €2800 per m² construction costs are probably not entirely unrealistic? That would quickly be €406,000, plus additional construction costs (15%?) and kitchen.

So your calculation of the total costs fits, I think the 700K are realistic. I’m more surprised: You both earn so well and are in your early 30s, why is there only 55K equity? Oh right because you’re “artificially” holding back another 50K...

Then your house doesn’t fit either... Either you put everything into a property which then builds up your capital and when you’ve made progress with that you can do ETFs...

Or your place gets smaller

Somehow that doesn’t add up.

We have a similar situation with house price and salary but much more equity and I was already worried about it...

If in 10 years you have to refinance the first loan and your ETFs aren’t performing well at that time... then you’ll be sleeping badly for 2 years

If I were you, I would also liquidate the portfolio first and put it into the house - it would let me sleep more peacefully. The rate goes down and you are off the loan-to-value ratio. I myself sold all the stocks with a really big profit - that helps now with the house construction. You move in, then let 5-6 years pass and you will know again where you stand financially and how to proceed. At 35, you can start again to increase your [ETF portfolio] and still have an investment horizon of 30 years until retirement...