Construction in the Munich district, realistic?

If one knew again that the 900,000-euro property had already been purchased by the OP and fully paid off, it would look different again (cash flow), but something tells me that's not the case.

Our equity is around €900,000 in the form of a property, which we are currently still living in ourselves and thus would have to finance in between.

If it is equity, then it must be paid off.

The property is debt-free, yes, but has the [TE] also fully paid for it ("from scratch")? If it comes from inheritance/gift, you can't assume that 900,000 EUR can be paid off in, let's say, about ten years; otherwise, yes.

You have already read that this is the most expensive city in Germany, haven't you?

I have read that it is Munich, whether it is the most expensive city in Germany I do not know, honestly I don't care. I am just amazed at who can afford such property prices. Of course there are expensive residential areas everywhere, such prices always blow me away!

What reminds me again of a lecturer from Munich, who 25 years ago was fascinated by the Siegerland because here almost everyone owns their own house with their own plot of land, mind you at apartment prices in Munich.

Good morning everyone,

Thanks already for your answers.
I’ll try to answer all the questions.

Yes, the plot alone costs €1,220,000. Unfortunately, this is absolutely usual here and definitely not the most expensive offer.
However, the owner yesterday said we will see where we can come to an agreement. So maybe we still have a minimal scope for negotiation downwards.
But of course, that does not change the rough calculation.

The equity of 900k is a paid-off 4-room apartment, ground floor with garden.
It belongs to my parents and they would contribute it 100% in the form of a gift to my sister and me.
As said, we currently still live there, so it would have to be temporarily financed.

There is theoretically a second security for the bank, namely my parents’ house (large plot in the Munich city area, value over 2 million). My sister and I are co-owners there, together with our cousins. However, our parents have usufruct on it. But they would guarantee it.

The loan of 650k per family is already clarified with the bank, we could actually both get up to 800k, but we would prefer not to be so heavily in debt.
That’s why the question was whether you consider the sum of about 880k for a semi-detached house (living area about 140 sqm per half) + garage + incidental building costs as feasible.

Maybe briefly about our income.
We are three employees in the public service (all in the higher service). And my brother-in-law is self-employed in advertising film production.
My parents (should they guarantee) are also both still fully employed and both in the public service as well.

The equity of 900k is a fully paid off 4-room apartment, ground floor with garden.
It belongs to my parents and they would contribute it 100% in the form of a gift to my sister and me.

But that means in turn that you have 0 euros yourselves or contribute nothing?
Fine, financing is one issue, but it already fails due to the costs/volume.

There is theoretically a second security for the bank, namely my parents' house (large plot in Munich city area, value over 2 million). My sister and I are co-owners there, together with our cousins. However, our parents have usufruct on it. But they would guarantee with it.

You better don’t even mention that. Why do your cousins have co-ownership there? Because it originally belonged to the grandparents?
If you and your cousins are the owners, then your parents cannot guarantee with it because it does not belong to them. It belongs to you. If the house is to serve as collateral, then your parents would have to subordinate their usufruct to the mortgage. Otherwise, it will be worthless to the bank. But even then your cousins would have to agree. Because they would have to guarantee with their ownership.
But also the issue of financing.

That’s why the question was whether you find the sum of about 880k for a semi-detached house (living area about 140 sqm per half) + garage + incidental building costs feasible.

As already written:

In my opinion, in Munich at least 3000/sqm.

House 140*3000= 420,000
Basement = ? Perhaps 100k cheaper in a semi-detached house??
Garage = 30,000
Incidental building costs = 80,000 (15% of the above amounts)
Fittings = 50,000 (kitchen, furniture, lighting, painting, etc.)

That makes 680k per half.

You can discuss each item... but that is miles away from the estimated budget. Unfortunately.

I consider that quite realistic. Land is of course very expensive in Munich. But the construction itself should not be that expensive; you can hire craftsmen from outside. With 2500 per m2, a lot can already be done. You can omit the basement. And then you are absolutely realistic.

Whether you build in the village or right in the city makes no difference in price.