Finance big, wait, or think smaller?

We decided on exactly your Option A due to tax advantages, and now we have a relatively low rate thanks to tenants who help pay it off.
https://www.hausbau-forum.de/threads/kaufberatung-finanzbewertung-50er-jahre-haus-mit-attr-grund.44573/

500k loan, €2350 rate, €740 rental income per month. I’m already looking forward to the tax return this year because hopefully some investments, e.g. new electrical wiring in the basement, will be partially reimbursed.
We live in the hillside house on the ground floor (100m²) and in the future in the basement if we have children (2 rooms are livably finished).
If we need more space, e.g. for children or parents, at some point we will stop renting out.

Advantage of older house: Larger and nicer plots, detached with enough distance and therefore very quiet.
Disadvantage: Costs quite a bit to renovate ;-), no longer completely free to design.

Do I want any tenant in the house? No.
So far it has gone happily for us, as the tenants even help us out and work in the garden, etc. (They are retirees).
You also don’t hear anything (I would check the ceilings beforehand to see how much you hear footsteps). On the other hand, in a two-family house with special termination rights, you can choose tenants very well.

After the renovation of the ground floor, we are super happy that we made this decision, but let’s see what investment costs the future will bring. All the tradesmen we had meanwhile agree that buying an older house can be worth it :).

What are you waiting for with almost 10,000 EUR net? Buy whatever you want, even a 3,500 EUR installment is no problem for you.

What always amazes me. 10,000 net and 500 EUR for groceries and drugstore items? 125 EUR per week? Why are Germans so incredibly stingy when it comes to food?

Villariba and Villabajo are the two villages from the dishwashing detergent commercial, where Villabajo always chooses the "clever" behavior, I remembered that correctly, didn't I?

Almost right – exactly the other way around, the people of Villariba are the ones who do it right.

But you rather advise us against waiting and seeing, if I understand the overall text correctly?

I advise you against betting on the future of a better construction market behind the seventeen mountains with the seven dwarfs, hence my motto "Build now." Better to have the interim house in hand than the perfect dream castle on the roof.

If I may ask one more question, to what extent do you refer to 2034/2035 here? Or should it be 2024/2025?

No, no typo. I am advising you to go for an interim house (Yvonne prefers to call it a "starter property"). You move in now, don’t grieve over the (for the time being) unexperienced "state of the art," but be a happy little family in a needs-based own home with many similar neighbors and children of playing-age friends. In 2034/35 you will be in your early forties, child 1 will be looking forward to secondary school, and you will have ten years of living experience in your own home behind you, which makes all stakeholders more competent for planning the better next house. The (in-law) parents will also already have experience with the consequences of the retiree phase of life. All residents of the second house will then know more precisely which needs they bring in. The financial situation will also be better: the money tied up in the first house will have developed its value over time; staying a renter with savings in the bank would not have done so. Meanwhile, Villabajo has borrowed a lot of money to put all the features into their first house out of pure FOMO, about half of which (in hindsight in ten years) will have turned out to be dispensable or worse. Cheers to that with a Dujardin. And now to the section where I suspect your impression of skepticism:

Look now for suitable developer projects* (in two threads it's currently about self-administration at / Hildmann, the market will clarify and consolidate) [...] *) whole baking trays full of semi-detached houses are constantly baked exactly for young families like you

In a situation comparable to yours, there are so many young families that an entire residential construction industry branch focuses on them as a target group and develops products for them, with which areas are equipped, at least one of which will be located in a place suitable for you (otherwise I am happy to advise you how to create such yourself for you). These providers are currently all struggling in the same way with the effects of what I call politically induced uncertainty (the same that makes some people wait for miracle recoveries in the construction market) and are consequently threatened by insolvency. One of these players currently has two threads here; it is called after its market niche "Traumhaus (AG)" and is vital enough to survive its insolvency. If you look here for my "usual suspects" ("Suspects" / "written by: 11ant"), you will find their competitors listed (without claim to completeness, mostly represented in this forum): Brale, Tecklenburg, Weisenburger, Wengerter, Werner, Wilma, and so on. Demand is more sustainable and stable than the current economic fluctuations. Should individual players stumble, have to merge, or the like, the supply of projects of this product type will not dry up. Further contributions by me on this topic you will find (where: see above in this post) titled "Developer offers: Caution with special requests" and "A semi-detached house has TWO halves."

The range of alternatives A to C also spans too many octaves in the good income situation. The Wolpertinger world salvation is a dream, answers your housing question in reality. This Austrian word for real estate is a "sign" ;-)

Between "staying renters," "only owner-occupied residential property," and "becoming a (small) landlord" lies a spectrum spread as wide as a straddle. Even with above-average good creditworthiness, you can hurt yourself there. Especially if you want to kill all flies with one swatter (optimize your own housing situation / accommodate relatives / please tenants / save taxes / gamble on high-performance & risky future bets). Wolpertinger are (fake) hybrid creatures inspired by the model of egg-laying wool-milk pigs. It is common (I am a humanist, went to school long before Pisa) that understanding my contributions requires a large package of general knowledge (or otherwise prompts googling).

Dear ,
we earn very well, but 10k net is only for one year, as long as my wife receives parental allowance.
After that, the planned 7,250 € more is the reality.

What always amazes me. 10,000 net and 500 EUR for groceries and drugstore? 125 EUR per week?

That’s how we were both raised and have kept it that way.

Dear ,

thank you very much for the time you took for my questions and the detailed answers!
I already knew that I would get a lot of valuable help here in the forum.

Dear ,

We decided on exactly your Option A due to tax advantages, we now have a relatively low rate because of tenants who partly pay it off.

Thank you for the message, I will read through the thread about your project, I am glad that someone with a similar concept to what we initially considered has done well.

Thanks of course also to everyone else!

Does she not want to work at all afterwards?
It’s not good for her, nor for her pension...

This stinginess is one of the reasons why farmers earn so little and end up on the street. Maybe use organic products or [Haltungsform 1] more often.
You can afford it...