Construction financing - What is possible regarding credit limits?

Dear dream plot and compromises on the house rather than the other way around (as long as it doesn't get extreme). Of course, it is difficult when many plots are excluded due to the development plan. Possibly rethink and not build "modern" or find loopholes with a clever architect. Then you can save a lot of money on the plot.

I would be happy if someone could also address the topic of financing and remaining debt, or has tips on that.

You have good equity, so even with an expensive house you can get reasonable conditions. So why not just go with the simplest option of a 20-year fixed interest term? Intuitively, with a 4000 payment, you should be able to fully repay a 600,000€ loan in 20 years.

Everything is relaxed, as long as your job is secure. Personally, I would be afraid that in the event of a necessary job change - for whatever reason - salary cuts would be the result. May I ask what you do for a living?

Regarding Munich, I can only unfortunately mention that even the previously mentioned costs might be tight. Unfortunately, absolute madness...

2500 per m2 is a good estimate. Then the additional costs are about 100k. House price around 700,000 euros. Land extra.

You are at about one million.

My current plan envisages a 20-year fixed interest period with full repayment within this timeframe. According to the calculators, this allows for the 800k credit limit. Possibly, this could be extended somewhat to 25 years binding and repayment. Judging by your assessments, my assumptions are within range. Against this background, it is also worthwhile to make more concrete inquiries with the banks.

Fortunately, we do not live in the Munich area. There, our budget would probably only be enough for a towel-sized plot with a prefabricated house. Completely absurd prices, I wonder who can still afford all that.

As for the risk: If I myself were to fail, the loan would default. Unfortunately, it cannot be otherwise, since the partner's income hardly covers living expenses. Therefore, we have to swallow this bitter pill anyway. However, the risk of failure due to job loss or change is low. I am employed in a large DAX corporation, at a location with almost 10k employees. Additionally, in a fairly secure leadership position. Of course, you never know, but probably the only thing safer is civil service...

I always find 20 years full repayment somewhat nonsensical, unless you simply don't know what to do with all your money or are approaching 50.