House construction financing - What is possible and realistic for us?

We are basically almost in the exact same starting position. We borrowed €300,000 from the bank and pay an installment of €1,100. The house with 140sqm is still under construction, but I am optimistic that we will manage somehow. So it should work out.

I would only want to live in a way that the children have connections. Of course, having grandparents nearby is great, but you basically need friends to play with every day, and for the children, it is a completely different quality of life when they can arrange meetups easily.

for example through a new development area

Doesn't really help. The town center/old buildings are dying out and a small enclave on the outskirts continues to live. It would be better to close building gaps and promote renovation to make the village more attractive as a whole.

But let's leave that topic, it doesn’t help the OP anyway...

I would appreciate it if you could give feedback regarding the donation and division of the property.

The question of whether a village survives or not depends (also) directly on the internet connection.

Whether the town center dies out or not is another matter! In a village of 200 inhabitants, I don't really see a town center, at least in our case! A new housing development would already bring quite a bit here! But as already mentioned, that is almost impossible!

We ourselves are still undecided about how to proceed! Since having children is supposed to become serious soon and we still live in a small rental apartment, a decision needs to be made soon! Either moving to the next rental apartment or off to the adventure of building a house!

If there is any news, I'll report!

I would not build in such a small village. The loss in value is simply too severe. If you absolutely want to go there ([Vor/Nachteile wurden ja schon genannt]), I would rather look for an existing property and possibly renovate it.