Is building in Bavaria still possible for 500k?

It was not about favoring city or countryside for me, but that - in my opinion - with children and long commuting times you quickly reach your limits. Therefore, I would definitely prefer proximity to the workplace, wherever that may be.

It depends on where. Within a radius of 25 km around Munich city center, you then pay "only" 1.3 million euros for a terraced middle house, at 30 km distance still 1 million euros ... and then we are already leaving the e-bike radius.

It certainly doesn't work everywhere, but in many places. With 45 km/h pedelecs you can also extend the range again and still have a bicycle ;) I think it's important not to stick to old-fashioned wisdom. You can waste a lot of time commuting both in the countryside and in the city ("everything is an hour away in Berlin"). And you can also live relatively close to work or have short distances to the kindergarten in the countryside. Basically, of course, you have to make a compromise between price and typical commuting time. Regarding leisure time, I would not necessarily write off the countryside. You often have 20 minutes to the cinema or sauna in the city as well. I haven't been to the old town voluntarily for ages, because Konstanz is not only a holiday region but also a Swiss colony, with corresponding prices. Nothing definitely pulls me to the old town ;)

after a long search we have the possibility to purchase a plot near Ingolstadt (540 sqm, purchase price including ancillary costs 570k€). Our total budget is max 1.1 million, minus a small safety buffer in case something goes wrong during construction, so we would have just under 500k€ left for the build. Over the years, we have already significantly lowered our expectations due to the development of land prices

Near Ingolstadt, aha. The headline whether building for 500k is still possible in "Bavaria" is quite misleading: because in Küblach, Kaltenthal or Ganting one would probably answer that surprised with "of course!" Take a look at the market for the products from Daimler, BMW and Audi – then the penny should drop quickly that you have to reckon with Stuttgart and Munich market conditions roughly also in Ingolstadt. With this insight, browsing around a bit in this forum you should humbly rejoice how good you have it. From the Stuttgart people here you will mostly read that after land price and hillside surcharge, there is no longer any question of window pattern; and the Munich residents cannot even dream of the availability of a plot for a detached (!) single-family house, on 540 sqm there a semi-detached house is already fixed, and the whole then costs 1.2 million per half (heart drops construction side). Therefore, I will exceptionally say nothing here about the keyword window material.

On the topic of the ratio of land/house price: you have to look at the other dimension (namely the sum) regarding the ratio as well. As far as we move in the mid / upper field, the ratio is of course important: you notice from the resale value whether house and land play in the same league – if yes, the object is more attractive and among other things also sold faster. But where the potential buyers are "only" well-paid employees, individual several hundred thousand can decide whether anyone can afford to buy the object at all. Even if the whirlpool in the guest WC would be possible, it would therefore mean being absolutely storm-proof guaranteed that you can keep the house under all circumstances. For someone who rejects one hour more daily commute not for work/life balance, but for economic reasons, I do not see that given. More equipment level here would therefore mean not being able to accept a job change offer because you would not get rid of the high-priced cabin quickly enough. In your place, I would seriously consider building a two-family house with this plot size and offer the second residential unit immediately. Then the fancy windows will also work.

Everyone as they like. You can also basically live in the countryside and work in the countryside. ;)

Well, you won’t be able to reach horseback riding on foot in the city either. Here in the countryside we can reach that on foot more easily. Everything has its pros and cons.

Actually, I live in a big city and horseback riding is within walking distance for the children, just like the lively neighborhood center. Looking out the window, I can even see horses in a meadow, right in the middle of the city. Location, location, location, that’s what counts ;)

I find this city vs. countryside discussion interesting – but it has led to nothing for decades. It's simply individual, that's it. Back to the topic, – what does your plan look like now? Divide the plot and go for a semi-detached house or stick with 140 sqm modestly?