End-terraced house 485,000€ credit loan. Is house purchase financeable?

That does not add up at all.

The net household income is too low. You have €4,000 per month.
After deducting the mortgage payment of €1,360, food etc. €2,000, and additional costs (heating, water, property tax, etc.) of about €500 at least, there is hardly anything left.

I have estimated €2,000 per month for food, leisure, etc. We have one child ourselves and it adds up month by month.

If a washing machine or something else breaks down, you have nothing left for that each month. Not to mention vacations, car purchases, etc.

Moreover, the installment is too low. With €485,000 and an interest rate of about 1.50%, you certainly have a repayment rate of only 2%. Too little to avoid running into trouble with a higher interest rate after 10 or 15 years.

We are currently looking for a house ourselves and will probably take out a loan of €600,000. However, at the end of the month, there is still a good €1,500 left as a safety buffer. Just plan in your calculations that the house should be paid off by retirement and that at least €500 remain after all costs are deducted. And I would not plan any income increases through further training at all. Unless these are fixed tariff level increases.

Honestly, there is a lack of 500-1000€ income or 50-100k equity.

Yep. At least an extra 450 Euro job even if it's difficult. Until the woman can work again. Do you have support from your parents, in terms of childcare or also through monetary gifts or loans? How much do you currently pay for cold rent?

The fixed interest period is 20 years, spread over several components. The interest rate for a €350,000 loan is 1.66. €100,000 from the L-Bank and the rest financed through KFW. Our current cold rent is €580. I don’t see the additional costs as that high since it is a KFW50 house.

Just yesterday, I read on an economic news portal that there will be no real estate bubble in Germany, as according to the financial institutions only solid loans are granted here. :D

I agree with the majority opinion, that is clearly too little income for the loan amount.

What exactly did you take as the repayment rate for the loans? 2% repayment?

Honestly, it is not quite clear to me how you then arrive at a total monthly installment of 1,360€. If you had taken 2% repayment on the 350,000 €, then at an interest rate of 1.66% the installment would already be 1,068 €. The KFW loan 55 always has one year without repayment and with a term of 20 years a rate with repayment of 563 €.

You have a difference of 800 euros between the installment and the current rent. Utility costs are higher than for an apartment, let's say a total difference of 900 euros - could you spare this additional amount month by month, even if your wife stayed at home for 2 years? Please calculate honestly and also consider larger expenses such as a new car, major repairs, or a child's communion. If yes, why have you only saved on utility costs so far, and what would you need to change in your expenses in the future? Could you sustain this during the parental leave and afterwards for more than 10 years?