Existing purchase plan: Financing possible?

Hello everyone,

I have been reading along here diligently for a long time and have already picked up many tips from you!

With my girlfriend and me, things are actually becoming a bit more concrete now, and we have found a potentially suitable property.
The viewing is already next Tuesday, Monday we want to deal with the construction financing and would therefore be happy to receive your feedback!

General information about you:

[*]Who are you? Couple, unmarried
[*]How old are you? She: 30, He: 30
[*]Are there children? No
[*]Are children planned? Yes, one, probably in 2-4 years
[*]What do you do professionally? She: employee, He: employee with collective agreement
[*]How many hours do you work? Each full time, 40 and 38 hours

Income and asset situation:

[*]What income do you have (net)? She: 2100 EUR net minus company car 1800 EUR net; He 2600 EUR net + 13th salary
[*]How much equity do you have? 135,000 EUR
[*]How much equity do you want to invest in the house project? 80,000. 20,000 should be kept back for a car in case the company car is no longer available.

Expense situation:

Housing costs:

[*]Current warm rent: 760 EUR
[*]Electricity: 65 EUR
[*]Gas: included in warm rent
[*]Water, wastewater: included
[*]Phone, internet, mobile phone: 40 EUR for landline + internet, 50 EUR for both mobiles, 10 EUR for Netflix

Mobility costs:

[*]Monthly ticket for bus and train (also for children!) - not available
[*]Car loan (or saving rate for a new car) - not available; She has a company car - already deducted from net income
[*]Insurance: approx. 30 EUR per month for a car
[*]Fuel: approx. 60 EUR, much home office also in the future. Mostly driving with the company car

Insurance costs:

[*]Private health insurance (also supplementary insurance, daily sickness allowance etc.) - no
[*]Liability insurance: approx. 7 EUR per month
[*]Capital or term life insurance: no
[*]Pension insurance (also Riester, Rürup, etc.): no
[*]Occupational disability insurance: He: 70 EUR per month, She: 30 EUR per month
[*]Accident insurance: no
[*]Household insurance: no
[*]Legal expenses insurance: no
[*]Other insurances (e.g. travel insurance, funeral expenses insurance): no

Living expenses:

[*]Groceries: 150 EUR per month, we eat a lot from leftover food at work
[*]Care/drugstore: included in the 150 EUR
[*]Pets (food, vet, medication, stable costs): no
[*]Medication: no
[*]Clothing: 50 EUR per month
[*]Furniture: 50 per month
[*]Club fees/gym: He: 50 EUR
[*]Miscellaneous: excursions, smaller purchases, "fun expenses": 400 EUR per month (??)

Savings:

[*]Vacation: She: 150 EUR per month, He: 200 EUR per month
[*]Retirement provision: He: additional provision via collective agreement
[*]General: She: 700 EUR; He: 850 EUR

Other expenses:

[*]No other expenses, no consumer loans etc.
[*]Vacation (based on the last three years): 2000 EUR per year, roughly 170 EUR per month

Income and expense totals:

[*]Total income: 4400 EUR plus 1x 13th salary.
[*]Total expenses: 2320 EUR
[*]Balance: 2080 EUR
[*]Of which cold rent and dispensable savings (e.g. savings rate for house): 560 EUR cold rent

General information about the property:

We imagine living in the property for the first few years and gradually undertaking the renovation/refurbishment over the next years. Much can be done by ourselves.

[*]How large is the plot? 260m2
[*]New build, old building (year built), house type? Old building; 1913
[*]Garage? Parking space in the yard
[*]How big is the house? (living area / usable area); 120m2 + 40m2 usable area

Construction or purchase costs:

[*]Acquisition incidental costs (notary, court, property transfer tax, broker): 53,000 EUR
[*]Purchase price: 480,000 EUR
[*]Renovation and/or refurbishment costs: approx. 100,000 EUR. The house should be renovated in the future, not immediately.
[*]Total costs: 633,000 EUR

Other costs:

[*]Kitchen costs: 10,000 EUR
[*]Furniture, lamps, decoration: available and initially not necessary.

Cost summary:

[*]Total costs: 643,000; but initially only the 480,000 credit is to be taken. Renovation then gradually over the next years.
[*]Deductible equity: 80,000
[*]Financing amount: 533k purchase price including incidental costs minus 80k equity = 453,000 EUR

We aim for a maximum annuity of 1350 EUR, plus approx. 400 incidental costs for the future house.

What do you think, is financing possible for us without headaches?
Thank you in advance for your feedback!

Where do you buy? Unrenovated, towel property and half a million??

Purchase price suggests an expensive area. But that doesn't fit with only 750€ warm rent.

I think it could just about work for you. With children it will be tight, but you're still young and have plenty of time to pay it off.

Yes, indeed, prices have also exploded in the wider commuter belt of Frankfurt a.M.… You can be glad if there is even a viewing. The affordable rent including utilities is only because the landlord knows us very well. Therefore, no adjustment has been made in recent years. It could be tight with children, that's true, but I think there will still be some development in the job here as well.

Total costs: 643,000; but initially only the 480,000 loan is to be taken. Renovation then gradually over the next few years.

Renovation and/or refurbishment costs: approx. 100,000 EUR.

So where does the 100,000€ for the renovation come from then? You won't generate that. That means a second loan. I don't know if that's so wise.

So, have you actually spoken concretely with a bank yet?

What is the general condition of the building? Is it basically habitable? I somehow cannot imagine that a bank would support such a project under those conditions. The building itself probably hardly has any value given the year it was built. The renovation costs seem to me to be set too low for such an age, although of course that always depends on one's own standards.

Renovating gradually will also be difficult, you won't get an additional 100k loan now if you want to draw the money only in 3 years. Then you might as well renovate everything at once now instead of starting over and over again.

As I said, the biggest problem will be finding a bank that finances the entire project. I only know of such projects in the scenario where either a very high income is present or a lot of equity is contributed, because the risk for the bank is quite high.