How expensive can the property be?

I don’t understand why some people want to build their own grave or prison at all costs.

If his wife brings home a few extra euros and the mother’s income is not in any absolute disproportion to the daycare fees, why shouldn’t they dare? They have almost €3500 household income including child benefit. If you think like that, you won’t get anywhere. Exactly for these reasons, Germany has such a low rate of home ownership; people no longer dare to do anything and rather pay €800 rent somewhere for nothing.

Just look around for existing properties from the ’50s or ’60s and renovate the thing with your own effort from scratch. In the end, a nice payment around €1100...€1200, we’re not even talking about the Rhine-Main area, and such a dream is achievable.

Of course, you should handle your income responsibly, but don’t let anyone tell you that homeownership is explicitly reserved for the academics of this country. You are a typical middle-class family and very much have the right to be excited about this topic; who else should be able to move into a home?

Keep a household budget, make a fair cost breakdown, preferably with a buffer, and calculate everything through. Then go to battle with the numbers and look at the different possibilities.

No one ever wants to hear it, but try saving €1000 per month for 2 years. If that works without problems, you can pay off a loan of €400,000 and then have just under €50,000 in equity. Then your wife might work again, and it sounds better.

If his wife brings a few more euros home and the mother's income is not in any absolute disproportion to the daycare fees, why shouldn't they dare? Including child benefit, they have almost €3500 household income. If you think like that, you won't get anywhere. Exactly for these reasons, Germany has such a low homeownership rate; people no longer dare, they prefer to pay €800 rent somewhere for nothing.

Just look around for existing properties, from the 50s...60s, and renovate the thing yourself from the ground up. In the end, a nice installment of about €1100..1200, we are also not talking about the Rhine-Main area here, and such a dream is achievable.

Of course, you should handle your income responsibly, but don't let anyone convince you that homeownership is exclusively reserved for the academics of this country. You are a typical middle-class family and certainly have the right to be enthusiastic about this topic, who else should be able to move into a home?

A homeownership per se no, but a new construction is of course completely unrealistic with this constellation. Even with a lot of personal effort, I don't see it here. There's a lack of income and especially equity. Unfortunately, the civil servant status doesn't change that.

If his wife brings home a few more euros and the mother's income is not in any absolute disproportion to the daycare fees, why shouldn't they dare? Including child benefit, they have almost €3500 household income.

Yes, which basically means they can handle a loan of around €350,000 at most. Their 300!! m² plot already costs €100,000 – it should be clear that neither building nor existing properties there are cheap. With €2000 per m² for maybe a 120 m² house plus additional costs, we are already in the red zone. It can be done, but it is not necessarily sensible.

If you think like that, you won't get anywhere. Exactly for these reasons Germany has such a low owner-occupier rate; people don't dare anymore, preferring to pay €800 rent somewhere for nothing.

It has nothing to do with “daring,” but rather with very good tenant protection and lower costs when renting compared to buying. A characteristic in all boom areas is that purchase prices race ahead of rents. Like here – the income may sound okay, but in the (bubble) race it has long since fallen behind.

Of course you should handle your income responsibly, but don’t let anyone tell you that homeownership is explicitly reserved for the academics of this country. You are a typical middle-class family and certainly have the right to be enthusiastic about this topic; who else should be able to move into a home?

The middle-class question is very academic – just like the OP, by the way – Bafög. The second income is simply missing to make it work. And without equity, you have to quickly return to part-time work. Thirty years ago it was surely different, but today even high earners only get a terraced house or a semi-detached house. This might change again, but one should be aware of that. Even five years ago he could have gotten something at somewhat higher interest rates for significantly lower prices. Conclusion: currently tight. Really save, pay off debts, and the wife should work again after one year, and then the project can start in 2-3 years.

A characteristic in all the boom areas is that purchase prices are outrunning rental prices.

At least in Berlin, this was different until the rent cap (and whether it will remain in place is still to be seen). There, the rents (for new leases) also rose without limits. Now, with the rent cap, the situation is such that you first have to get hold of a suitable property at all, or rather it has to come onto the public market in the first place. Well, I'm curious to see how things will develop.

If you think like that, you will get nowhere. Precisely for these reasons, Germany has such a low homeownership rate; people no longer dare to do anything and would rather pay 800 € rent somewhere for nothing.

So, would you rather live like in the USA with 3-4 credit cards maxed out? The main thing is to have a house and a nice car. The problem with such a tight situation is that the costs seem very low/not properly calculated to me: 1. 100k for the plot including development. What about ancillary costs like: property transfer tax, notary, offices,...? 2. 800 € other living costs. So clothing, internet, insurance, car, reserves. With three people it will more likely be 1,500 € - 1,800 €. We ourselves calculate over 2,000 €. 3. Private health insurance as a civil servant already taken into account? What about child/wife? 4. Housing. Is that warm or cold rent? It's not about whether the original poster can afford the house. Personally, my main concern is that with the vague information, we cannot assess it at all.