House construction financing: okay or better to make cuts?

Of course, no one knows our expenses, but I’m more interested in an objective opinion on this.

For this section here, most participants—including myself—only bring the qualification of hobby astrologers anyway. Objectively, however, you have already made objective opinions impossible by the fact that we only know this one side of your balance sheet. Therefore, I mischievously assume that you have already taken out the bag of chips yourself and are being entertained by our "nonetheless expressed" opinions ;-)

Oh yes, we are 35 and 37. Unfortunately, editing didn’t work with the phone.

Editing, on the other hand, doesn’t work for an objective, albeit stupid reason beyond your control: namely a (in my opinion, mis-)configuration of the editing time to four minutes. That would reportedly be too short even for the Transrapid from ZMU to MUC ;-) Accordingly, I withhold any assessment of your income figures. What I can generally tell you, however, is this: the best time to build a house of your own is "now" (because the option "yesterday" is no longer available, and uncertainty remains the only certain characteristic of all futures). As a family, you are in the best age to someday enjoy more home ownership as a benefit for your living conditions than you do now. Both under 40 and the children still small, it doesn’t get better than that to still have twenty years ahead with the second house, so go for the first one now without hesitation. Even just the question of whether you lean toward the upper or lower end of the range from 110 to 140 sqm helps to regulate the financing pressure very well. Tiles sized 30 x 30 are a floor covering—even if people often talk about them as if they were a stigma, but real life is not Marienhof, GZSZ, or the like. For Schloss Guldenburg your circumstances may not suffice, but for "getting out of renting," definitely. Better vacation and occasional extra repayments than floor-to-ceiling corner windows in the golden guest WC. A roof over your head, without Peter Zwegat’s phone number under your pillow, is a fine thing ;-)

Thank you for your very helpful contributions. With such a long-term decision, it really helps to hear different opinions. We have relatively little equity because over the past 10 years we have paid a total of 45k for Bafög and student loans. Additionally, we financed two cars which we both need and are not luxury vehicles. Also, a wedding and a nursery, stroller, etc. We are both in professions where there is still quite some potential for growth. If my wife works full-time again someday, we would have around 7700 including child benefit. In my profession, the average net income is actually significantly higher, but I have focused more on family than career. I pay into a pension scheme which can be advantageous and my wife will have her pension later, which we also keep in mind. It would probably be doable, but this figure for the monthly rate is not insignificant. It would be more relaxed if it were a bit less, but at the moment, with the high costs and interest rates, it is simply difficult to save significantly more. I will think about it for a few more days and probably calculate everything for the 11th and 12th time. Thank you all!

Also a wedding and nursery, stroller, etc. We are both in professions where there is still a lot of room to grow.

It is as it is.
You are still at the beginning… others only think about building a house when there is much more in the pockets than just taken out.

Additionally, two cars financed which we both need, they are not luxury cars either.

Remember that a car comes around again every x years. And in the meantime, it also causes a lot of expenses. This is not a one-time investment, but an ongoing one.

Children’s room stroller

It doesn’t have to be expensive, there are plenty of used options here. Everything gets scratched up after a short time anyway ;)
But I think it’s too late now.

We are both in professions where there is still a lot of potential for advancement

Calculations based on eggs not yet laid are risky. And civil servants are not exactly known for big career advancements. The question is also why your wife is working reduced hours and not you, financially that would probably make more sense.

Purely based on income, the installment is doable, what is the planned term of the loan? But I also see the problem that with this income, significantly more equity should be available.

Have you ever looked into state funding programs? Depending on the federal state, quite a lot is possible.

For civil servants, there is an automatic step increase, which means you can definitely plan for certain raises. Depending on the employer, child allowances will also be increased in the near future. Just find out.

But these are often not such big jumps or, although they are then planable, it remains as it is.

Moreover, two cars financed which we both need, they are not luxury cars either. Also a wedding and nursery, stroller, etc. We are both in professions where there is still quite a bit of potential upwards. If my wife works full time again at some point, we would come to about 7700 including child benefits. In my profession, the average net income is actually considerably higher, but I have focused more on family than career. I pay into a pension scheme which can be advantageous, and my wife will have her pension later, which we also keep somewhat in mind.

Remember, it always goes on like this. Eventually, the first repairs come, the children also always need something new again, and if you have not been buying second-hand until now, you may possibly not do so in the future either (that's what I mean by "being honest with yourself").
And if it's not that, then it's something else. Life is expensive when you are used to a certain standard, and giving that up is very difficult in reality. The enthusiasm for home ownership might not last long enough for you to willingly tighten your belt for the next 20 years.

How about this idea: just try it out in the new month of November and set aside the difference between your current warm rent and [Rate + operating costs + additional ancillary costs]. Then you will see if that is even imaginable for you. Especially November is, with a view to Christmas and the associated strong advertising and constant temptations, a good month for such an experiment.