Home financing - low initial rates / rapid increase?

As I already said, advice can always be given, but I think if he wanted to discuss his "maturity" here, he would have formulated the question differently

Vanben, I do not want to contradict you, but I reluctantly take quotes from distant posts when the last one is similar in meaning.

Of course, Neu-Ling does not want to discuss his maturity, but I read great naivety and a bit of megalomania in the original post, so I am also gladly willing to put my neck on the line with direct words in the forum.
My direct words, on the other hand, are gladly accepted or gladly read.
Also by those affected—and sometimes an affected person is offended by the harsh words because they bring that person back down to reality.

I don’t quite understand the thing with the "quotes from removed posts" right now. "Removed" in the sense of "deleted," or "far away"? What do you mean by that?

I didn’t want to argue with you about this now and am basically on your side if you think a rather strong word that might be perceived as an attack is still better than always telling people what they want to hear.
My criticism, however, was primarily aimed at the "refusal attitude" of those responding here. There was a concrete question about possibilities to take future salary increases (or more generally put: future cash inflows) into account in the financing. You can start by answering that quite normally before pulling out the raised finger and starting the big "BUT."

This is not least interesting for the (silent) readers here who might have similar thoughts and currently don’t feel like justifying themselves for that. It may be that the OP left a "questionable" impression here, but not every "beginner professional" still lives with their mom and has no clue about life, and not every interested homebuyer who doesn’t act by the book is therefore "stupid/naive/reckless."

I have recently started working at a major German automobile manufacturer as a mechanical engineer. As is well known, the starting salary is relatively low (€2,800 net) compared to what it will be in the next 15-20 years (€4,000-5,000 net). In addition, there is my fiancée’s income (€1,500 net). Now the question for me is how the bank views this. My fear is that with the low starting salary I will only be able to buy a small plot of land and a small house and that in "old age" the money will just be sitting around. How can I best approach the whole thing? Can I also take out a high loan and pay only small installments at first and then increase the installment amount over the years?

€2,800 starting salary "relatively low" I guess I should have applied more in the south after all... Start at the other end: What kind of house would you like? How expensive is a plot of land that you like? Do you want children? Then you come to some figures and can calculate the corresponding minimum installment. Maybe it’s enough now already?

- If you want to increase your salary quickly and significantly, you should not build a house. Rather, flexibility is required, as a real increase is only possible with a change. You then have to set priorities: locally bound or career-oriented and globally flexible.

- The assumption that it would run as in the previous generation is more than naive (take to heart!). You can also quickly end up on the sidelines (the board decides to spin off/close business unit X. The employees end up in the company's internal dumping ground. The collective agreement may still apply there, but real increases no longer occur). I wouldn’t count on that.

- We all have the collectively agreed increase or inflation on our side. Most financing will be more or less "on the edge." You afford what you can afford today. That you can still send two children to university in 15 to 20 years alongside the house (plus 2 vacations per year, plus a new car, plus a Weber grill) depends only (!) on salary increases. After all, you pay the installment until the end ... (YMMV)

- In my opinion, nothing more needs to be done to benefit from inflation (= the collectively agreed increases). Almost every financing offers options for special repayments and the possibility to adjust the repayment rate. These two tools can be used in combination. And after 10 years, you can cancel anyway ...

Concrete advice:
- First wait and put effort into your job to really increase your salary.
- At the same time, have two or three children.
- Build the house in time for school enrollment (or rent if the career turns out to be enjoyable).

- And whoever is really optimistic about their salary development simply finances at the limit of what is feasible today with a term of > 30 years. And then enjoys being debt-free after 20 years. (You better not look at the total interest paid.)

No, of course, salary development is not guaranteed. But just the collective bargaining that takes place every 2 years causes the wage to increase from €2,800 to €3,400 after 20 years with a 2% raise. No salary increase is included in that.

This is not a wage increase, but an adjustment for inflation. As a rule, this results in approximately +/- 0 in real terms.

The 15-20 year forecast is quite a crystal ball gazing. Will there even be a significant automotive industry in Germany in 15-20 years? Currently, Asia (Japan and China in particular) and even France are clearly leading in the field of e-mobility, while I expect the first self-driving car rather from the USA (Google, Apple, ...).

And where do you want to build? Wolfsburg? As far as I know, land there is very cheap, but that's precisely because no one wants to live there. As soon as the economy there goes even slightly downhill, the house will probably be unsellable. I would be very cautious about buying/building in such locations.

I think that with version 2 I will save 2 years -> In 2 years around €60,000 + approx. €20,000 other assets (building savings/ inheritance) will make a nice amount of equity. The plot of land (€75,000) will most likely be purchased beforehand as it represents the perfect location for me.

In what kind of region do I move with the possible credit limit (plot of land + house)? I am assuming €80,000 equity as well as a net salary of €4,500.