How is a 400k loan financible without equity? Net equity at €4,500

The property was financed through the house bank and
this bank therefore has priority in the land register?

??? This concerns the OP. As an example for 100% and <80% financing.

So for me, that would not be anything. I’ll compare again with my own example, since our income is similar and we also manage to pay 1200. That basically works quite well, BUT we only took out a 220K loan and will be debt-free in about 15-20 years with a maximum of 25K in interest payments. But if I consider that we had taken out a 450K loan, I would not feel very comfortable, because with the same rate and an assumed interest rate of 1.2% (which you will hardly get), after 20 years you would have already paid over 70K in interest and still have a remaining debt of over 180K. That means the whole project would cost us a multiple in the end and we would still have debts forever when the first renovations are due again. Then we would probably have to take on even more debt. That’s not for me. Btw, despite having a house and a child, we have over 1300 left freely available with this income, so that’s definitely possible, that’s not the problem. I rather see problems with the remaining debt and the high interest costs. However, I also have a company car and don’t have to pay for the fuel, which should probably be considered as an advantage.

Well, for me, that wouldn't be anything at all. I'll compare again with my own example, as our income is similar and we also manage to pay off 1200. That basically works quite well, BUT we only took out a 220K loan and will be debt-free after about 15-20 years with a maximum of 25K interest payments.

That doesn't have to be the goal, to manage it in 15-20 years. Ideally, the OP has a good 30 years for that and basically a secure civil servant's income on his side (almost full-time wife despite a small child possible for both?). For some, it would definitely be barely doable, but it will be bumpy. Keyword: expensive cars.
Without much equity, however, one doesn't have the luxury of taking out "only" 220,000 euros. Now he can initially save 100,000 euros, but that will take years. Assuming the price trend of recent years continues, he can hardly save against it. At 400,000, the "usual" 5% more per year is exactly what he could manage.
If the development of construction and real estate prices goes in another direction, and follows the general economic situation with a delay, everything will be different anyway. The next months will show more about that.

As said, "tight panties". TE will necessarily have to provide additional financing, income does not match the loan. Little to no equity

as I said "tight panties". Borrowers will inevitably have to provide additional financing, income does not match the loan. Barely any equity

That is simply not true. I think it is commendable that someone tries to invest their money in something meaningful, and the repayment rate is definitely doable with this income. How much money do you think one needs to be able to manage such a sum? It depends on the standard of living. This statement regarding "minimum income for a loan" is so wrong. What if someone who earns €7,000 spends €3,500 a month on things that are absolutely unnecessary? Such statements usually come from people who have no connection to money and have no idea how to handle it.

The repayment rate is doable, but then this person also has to be aware of what sacrifice and saving mean.

Maybe you don’t need an expensive car, maybe only go to the Italian restaurant around the corner every two months, don’t spend money every weekend on a €12 cocktail, maybe shop at Lidl instead of Edeka, get a cheaper phone plan, avoid unnecessary orders on Amazon & Co., maybe buy certain things on eBay Classifieds when possible, take a vacation every two years at the North Sea instead of going to Bali twice every year.

So, and just like that, we’ve saved the €2,000 a month that someone else might earn more, without losing quality of life. You can also go hiking completely free... There are plenty of activities or fun you can have without spending a fortune.

To generalize something like this regarding income is just nonsense. It always depends on the individual person, and everyone has to know for themselves where they want/can save and where not.

Mathematically, the whole thing is doable! That’s just a fact!

In today's generation, so much value is placed on outward appearance, which is so weak... I admire the previous generations. They knew how to save and how to make a dream come true.

Money alone does not even come close to making you happy.

Don’t be discouraged!! If it’s all worth it to you and you know what it all means for the next few years, then go for it! Your money is very well invested.

That is simply not true. I find it commendable that someone is trying to invest their money in something meaningful and the repayment rate is definitely doable with this income. How much money do you think one needs to have in order to manage such a sum? It depends on the standard of living. This statement regarding "minimum income for a loan" is so wrong. What if someone who earns €7,000 spends €3,500 a month on things that are not necessary at all? Such statements usually come from people who have no connection to money and have no idea how to handle it.

The repayment rate is doable, but then this person also has to be aware of what sacrifice and saving mean.

Maybe then you don't need an expensive car, maybe only go to an Italian restaurant around the corner every two months, don't spend money every weekend on a €12 cocktail, maybe shop at Lidl instead of Edeka, get a cheaper phone contract, avoid unnecessary orders on Amazon & Co., maybe buy certain things on eBay Classifieds if possible, go on vacation every two years on the North Sea instead of twice a year to Bali.

So, and just like that, we have saved €2,000 a month that someone else might earn more, without losing quality of life. You can also just go hiking for free... There are tons of activities or fun you can have without spending huge amounts of money.

Generalizing something like this about income is just nonsense. It is always tailored to each individual, and everyone has to know for themselves where they want/can save and where not.

Mathematically, the whole thing is doable! That's just a fact!

In today's generation, so much value is placed on outward appearance, that's so weak... I admire the previous generations. They knew how to save and how to make a dream come true.

Money alone does not even remotely make you happy.

Don't be discouraged!! If it's worth it to you and you know what it all means for the next few years, then go for it! Your money is very well invested.

No one said it is impossible. Just that it will be very tight. Simple assertion. If the project were a corporation, no one who wants to invest their money safely would buy the shares.