Construction financing without equity as an option?

Of course, it also has something to do with my own fears, but in my assessment, the security that homeownership (especially with a child) provides is hard to outweigh.

However, one could also argue the opposite. Nothing weighs as heavily in uncertain times as half a million in debt. A tight financing (keyword: last-minute panic) combined with job loss combined with falling property prices (due to crisis) is a recipe for personal bankruptcy, especially with financing without equity. One must always be clear that the risks are not independent but come as a package. When many people lose their jobs, many will no longer be able to pay their installments and will have to sell. At the same time, there are fewer buyers, so prices will fall accordingly. The last few years were not normal; prices usually go down in crises, not even faster up.

Tenant protection in Germany is very good; the security of a home is primarily a feeling. Of course, there are problems in some regions with an completely overcrowded rental market, but it is rather even worse there for owner-occupied properties. In addition, the owner bears the risk of a politically desired but uneconomical renovation.

Debt with still low interest rates and higher inflation is not bad;)

I always wonder when I read something like this: How much salary for how much installment? For you, very high installment. How old? Age fits. Costs realistic? Rather not for a KFW renovation. Does the equity match the target installment? Never, and that is the final crux. Sure, life doesn’t run straight, through studies, children, etc., you have higher expenses. But your equity is what you have to pay in installments in just one year. And you have to pay this installment for decades. Consider for yourselves whether you can do that. I would say no. Otherwise, you would have more equity.

When making the payment, I see this as the smaller problem. The household net income is quite high, so you can afford to allocate more for the home if you want to. I see the problem more on the cost side - purchase at this amount + incidental costs + renovation, I believe your calculation doesn’t cover that. We have heard from friends who have done energy-efficient renovations that realistically you have to expect more like 300-450k instead of 100k. Lastly, I don’t know how you secured the terms, but if you have financing for the conditions (570k, 1.87% for 15 years and without significant equity) in writing, that would surely be a good option. Honestly, given the current market conditions, I can’t imagine that.

Debt at still low interest rates and higher inflation is not bad;)

Only if you actually achieve that net. And that’s the catch. A 7% net increase is easily double-digit gross. I don’t know anyone currently who achieves that.
And as long as the house is not renovated, the project is also at high risk of the costs getting out of control. In the coming years, an incredible number of old buildings will be compulsorily renovated, so I absolutely do not expect any relief regarding craftsmen and materials. And slowly the risks are only adding up for this project: financing that does not match the saved equity, consumer credit for incidental costs, possible additional financing.

Only if you also achieve that net. And that's the crux of the matter. A 7% net increase translates easily into double digits gross. I don't currently know anyone who achieves that. And as long as the building is not renovated, the project is also at high risk of costs getting out of control. In the next few years, an incredible number of old buildings will be compulsorily renovated, so I absolutely do not expect any relief with craftsmen and materials. And slowly the risks are only adding up for this project: financing that doesn't match the saved equity, consumer credit for incidental costs, possible additional financing

Aren't many buildings also being foreclosed at the same time or not even taking place in the first place?