Is building a semi-detached house sensible despite low equity with a long loan term?

At least in terms of the numbers, it is possible and not harakiri, like some other financing options that have already been inquired about here. How much interest you have paid at the end of the term you simply don’t calculate and sleep better because of it. After all: a large part of the amount is tied up in the property, which can certainly be recorded as an inflation-stable asset, perhaps even more with some luck. Good luck to you!

How much interest you have paid at the end of the term is simply not calculated, and you sleep better for it

Never talk to tenants who cannot acquire property about this. They are in the unfortunate situation of perhaps having to pay rent for 70 years. It brings tears to their eyes when they see our luxury problems.

640k loan...WOW. 950 EUR interest alone per month?

Yes, indeed not little. However, with the prospects of rising prices in house construction and increasing land prices, which are not getting cheaper here due to the numerous employers in the metropolitan region N/FÜ/ER, but still bearable. Siemens alone is building the Siemens Campus (200,000 sqm) in Erlangen by 2030, for example. By then, many new jobs will be created there, and these people also want to live somewhere. Therefore, the calculation was quite simple for us: either save and risk that the saved equity capital compensates for the additional construction costs, or build now. It wouldn't make a big difference. Just this year, land prices in our region have risen by up to 7%, which would mean a maximum of 22k euros in additional costs for our plot. This roughly corresponds to the equity we have additionally saved so far this year. Sometimes you just have to bite the bullet. And in general, one should be more excited about the new house than about the monthly payment of the installments.

It is just a brutal gamble, other renowned companies have already stopped various projects just like that. But I don't hope that for you! Have fun with the new house!

We are in a similar situation. Area where the plots are very expensive and scarce. Nevertheless, we wanted to live in the center and decided on a semi-detached house with 193 sqm (without basement) on 400 sqm of land. Total amount your +200k€ including all incidental purchase costs / fitted kitchen garden etc. I would estimate the loan amount and rate as feasible with this income. One should, however, factor in the additional costs with 2.50-3.50 per sqm, as well as the maintenance reserve.

Regarding loan conditions: I would get an offer from All....z. Special KfW loan promotion with 0.65%, and with a 20-year term - with possible securities of 100k€ - <1.20% is possible....

Regarding loan conditions:
I would get an offer from All....z.

Really now?