House purchase: Financing (with/without equity)

... or a small used property like e.g. a terraced house

I would agree with that. Especially terraced houses in good condition can already be obtained for 200k - 250k€. You might then not have to live right in the center of a big city, but be willing to move to the outskirts. This way, however, you might make the dream of owning property possible.

I would agree with that. You can get terraced houses in good condition for 200k - 250k€. You might then not live in the center of a big city, but be willing to move to the outskirts.
This way, however, you might fulfill the dream of homeownership.

In Frankfurt (suburbs) you can at least double that value. Then you often still have to deal with ground lease or homeowners’ association crap (condominiums linked in a row). It probably won’t be much easier in Hanover (if he lives there directly).

200k - 250k€.

Nevertheless, for the OP, given the information he has provided, it is highly unrealistic at this point in time. Such a RH already costs 25-30k€ in ancillary acquisition costs.

:
Actually, only 3 things can help you:
1) become clear about where your money is going, and where you can save to build equity.
2) use the forum to find out what a property costs. (Not just when purchasing)
3) develop your family planning. Children cost a lot of money and usually always have an impact on income in the first few years.

In Frankfurt (outskirts) you can at least double the value. ... . It probably won’t be much easier in Hanover (if he lives there directly).

In the Hamburg area, you can definitely get something in that range, and Hamburg is definitely more expensive than Hanover. But that’s exactly why the note about the outskirts.

Still, for the OP with the information he has given, it’s highly unrealistic at this point. Such a terraced house already costs 25-30k€ in ancillary acquisition costs

It’s not like there are no banks that would do 110% financing. Or you could save the money in 2-3 years, possibly involving relatives.
Let’s assume a house including ancillary acquisition costs of 250,000€.
That means, with an interest rate of 3% and 2% repayment, we’re at about 1050€. Plus 400€ ancillary costs, so we’re just under 1500€. If the two plan with 2 children, there will hardly be a rental apartment below this amount in Hanover.

Edit: By the way, I didn’t mean to say that I would recommend this plan. However, I find it important to point out that children usually not only mean monthly costs and a change in income, but also generally a move to a larger rental apartment.
For a family of four, I can’t get a decent apartment in Hamburg for less than 1800€ monthly.

It's not like there are no banks that would do a 110% financing. Or just save the money in 2-3 years, possibly involve relatives. Let's assume a house including incidental purchase costs of €250,000. This means with an interest rate of 3% and 2% repayment, we're at about €1,050. Plus €400 incidental costs, we are just under €1,500. If the two are planning with 2 children, there will hardly be a rental apartment in Hannover below this amount.

Just calculate with an interest/repayment rate of >100% at 6%. The banks want to get out of the risk as quickly as possible. That would already put us at 1250+400=1650€

But 1500 or 1600; the bank will already resist with the net income that more/equal than 50% of net goes into the financing.

I don't know Hannover well but nice 4-room/110 sqm for warm ~1100€ or less I found several on Immoscout

In Frankfurt (suburb) you can at least double the value. Then you often still have ground lease or WEG nonsense (condominium set up in a row). It probably won't be much easier in Hannover (if he lives there directly).

I don't read anything about Frankfurt or Hamburg here! I read Hannover, and it's about building a nest, because the apartment is too small. Not enough capital for a new build house. And if it's a condominium according to WEG division, then it wouldn't be bad either, because you can start small. There's no nonsense if it fits the overall situation!