House purchase - What can we afford?

ok then one should also talk to the bank about what they count as equity, or is the 120k value of the property?

I have understood it like this now, property value 120k.

For the financing:

The best option is to set the repayment lower now and increase it later.
For example, by suspending repayments on the KFW loan and 2% on all other financing components. Important: save the remaining money aside so that the remaining debt does not catch you out badly.

Another, somewhat better way would be to build a single-family house with a granny flat or a duplex right away (if the roof allows it, otherwise with a granny flat). Every square meter that you can rent out helps you repay the loans. In addition, a second residential unit allows you to apply for KFW funds at preferential interest rates twice.

What do you think about it ?

Hi, sorry I expressed myself incorrectly, the house is to be demolished and rebuilt. Everything except the roof is to be removed. The current financing payments are 700 per month with me and about 300 with my wife, but they will expire soon. I earn 2300 net, my wife 1700.

Which tax class are you? I assume 4/4. I would then switch to 3/5, which would be about 2600 net plus 164 child benefit. In the first year, there is still parental allowance anyway.

We are currently tax class 4/4, but we will then switch to 3/5. My wife will continue to work from home, initially part-time, then as soon as possible full-time again. Yes, we have already thought about the [einliegerwohnung]. Space-wise, that would not be a problem; I currently have about 250 sqm, if the attic is used as another apartment, that's about 100 sqm more +/-. Our monthly expenses are relatively low. The car costs me about 70 euros including insurance, as I usually walk to work. For my wife, the costs will also be very low once she eventually works from home.

Evening everyone, I currently have the same or a similar topic in another thread.

Isn't it totally irrelevant which tax class you have since at the end of the year or with the tax return [4/4] is applied?

It is not about the tax return, but about the calculation of [Elterngeld]. By the way, [Elterngeld] is subject to the progression clause, so be careful!

It's not about the tax return, but about the calculation of parental allowance.

By the way, parental allowance is subject to the progression proviso, so be careful!

Correct! Therefore, it may be worthwhile to have the parental allowance paid out in halves. In our case, it even amounted to a four-digit sum that we saved. Of course, it also depends on whether half the money is sufficient and how work is planned during that time.