Dream house or castle in the sky?

I also find it very borderline. We are talking about a 500,000 EUR loan and I am already having a hard time with it. However, we have 250,000 EUR in equity, still reserves, and significantly more income.

Regards, Steffen

Addendum: Keep in mind.. the principal must also be repaid. It's not just about interest and the monthly burden. Our 500,000 EUR plus 170,000 EUR interest means, with 30% (example) taxes, 870,000 EUR which must first be earned gross. I think this is often overlooked... it's always just about the monthly burden. We are not in our early 20s anymore. I am in my mid-30s and, for example, definitely notice health-wise that I am getting older :)

First of all, thank you very much for the answers.

I am currently calculating back and forth a lot. According to the household budget book, there would still be enough left with the proposed installment amount. In addition, we have secured the interest rate over the entire term at about 2.3% and should be done after 22 years. Personally, I do not intend to use the full €400,000. Furthermore, I try to include enough buffer in the household calculation, for example additional costs + reserves with €600 / month and remain well below 50% of the income. First, I will listen to various offers from the construction companies and then see what is possible and whether it makes sense for us.

Thank you and have a nice weekend in advance.

22 years at 2.2% interest without equity ??? Which bank is that? :)

Equity is indeed in the Riester and home savings contracts (approx. €30,000). With these contracts, we have also secured the interest. We had the conversation at the LBS

Sorry, but 30,000 on 400,000 is not really equity. You have to pay the notary, real estate transfer tax, moving, kitchen, etc. all from your own funds. It's about the loan-to-value ratio, and that would then be 100%. The bank does not include all that in the value of the house. The value is determined exclusively by the land + construction costs... possibly also exterior landscaping, but I'm not sure about that.

With such a high loan... and then without equity... I would steer clear. Just my opinion.

Regards, Steffen