Desirable property affordable? Experiences?

Hello dear community,

we have the opportunity to purchase our dream property in a dream location. The purchase price is significantly below a realistic market price (in my opinion), as the seller values sympathy/neighborhood more than profit maximization. For us, this is almost a "once in a lifetime" opportunity.

Financially, it will unfortunately be really tight, especially in the first few years. Through salary increases and cost discipline, it could become much more manageable again in 5-10 years. Considering that the land should probably be worth more than the purchase price, we at least want to consider it and get your opinion.

How would you proceed here? Quickly say goodbye to this project or somehow make this dream come true? Where do you see (if at all) potential?

Key data property

Year built: 1965

Plot size: 1285 sqm

Living area: 179 sqm

[Pipe-stem plot]

Neighborhood quiet and single-family house development

Standard land value: approx. €600-650

Fully basemented

Old oil heating

Condition: maintained but in need of renovation

Purchase price: €620,000

Additional costs: 11.07% = €69,000

Total: approx. €690,000

New heating system: €20,000

Renovation work: €50,000

Total: €760,000

Key data about us:

Married (31, 31), two children (1, 3), third child planned

Income husband = €4,800 net + approx. €18,000 gross special payments per year, not performance-dependent (not considered in planning)

Child benefit = €500

Income wife = currently €0, possibly parental allowance again soon or approx. €1,000 in part-time (depending on success with 3rd child)

Total income: currently €5,300; prospectively €6,300

Expenses (household account): approx. €4,800 (of which €2,050 rent)

Available for installment: approx. €2,500 (cold rent + savings rate) up to max. €3,500 (considering wife's salary), + future buffer through bonus payments and further salary increases

Equity approx. €75,000

At 3.75% interest and 15 years term with 2% amortization, I arrive at an installment of approx. €3,300

I’ll say it without any nice words around it: Forget it, this is not tight, but one (or two) sizes too big for you.

Or in other words: Financial suicide

For God's sake, no - you shouldn't put yourself through that ...

I'll say it without any sugarcoating: Forget it, this is not tight, but one (or two) sizes too big for you.

Or in other words: Financial suicide

For God's sake, no - you shouldn't put yourselves through that...

Many thanks for the quick and honest assessment.
Out of interest: What rate do you consider reasonable given our starting situation?

The property is huge, is it possible to partition off and sell a part of it?

If you generously round up your household income to €5,000 and also factor in the special payment of about €750 net, I would come to €5,750. I would exclude [Kindergeld] from the calculation. Then the part-time income of the woman with €1,000 - we would be at €6,750. If you want to go to the extreme, simply taking 45% for the installment... I would see around €3,050 as an absolute maximum rate. A significantly healthier amount would probably be about €2,500.