Is buying a house sensible in the current market situation?!

There are indirectly gradations. These depend on the loan-to-value ratio = relation of financing to the value of the property according to the bank's assessment. It can happen that an additional €5,000 of equity, for example, pushes you over the 80% threshold (because you were slightly above it before). Or you may need €30,000 because you are far from it.

Thus, the equity almost gets used up by the incidental costs of the purchase. Therefore, it will be a relatively high financing = relatively expensive.
Loan approx. €575,000, with a 30-year term (suitable for your age) approx. €2,100 installment. This is feasible with your income (depending on your lifestyle and your current rent situation).

Thanks for the explanation about the equity! I have that in mind now.
We could also keep accumulating equity, but properties are getting more expensive (quite possibly). It won’t help me if in two years I have €50,000 more equity but the house costs €100,000 more (even though I find that hard to imagine).

It doesn't help me if I have 50K more equity in two years, but the house costs 100K more (even though I find that hard to imagine)

To broaden horizons regarding what is possible in terms of price increases, a quick look at current purchase prices in the greater Munich area helps. After all, the price increase currently seems, at least in my perception, to be stabilizing/slowing down somewhat at this very high level.

So 600 thousand euros really isn’t much money for a house anymore. New construction is probably out of the question anyway, you’re interested in existing properties? That will be difficult, because as you said, most of them are already being sold under the table. But ownership is more popular than ever. So good luck!!

Do you live well? Offer the landlord to buy, if it fits. Then the heirs won’t have real estate hanging over them.

So we are just starting our house construction project, which will end up with a total volume of at least 720k. Our net income is 5000€ (plus Christmas bonus...), so quite comparable. Our equity is higher than yours at 200k. And our installment will be 1800€ + special repayment. The amount of the installment personally doesn’t cause us any worries at all, but you can only decide that for yourselves. What causes us the biggest worries is that the costs during construction are not exactly predictable and the financing amount is already high in relation to our net income and doesn’t leave much room for maneuver. We would have preferred an existing house, but for 720k we would have gotten a semi-detached house from 1985 with 130 living space and 250 sqm plot, and so we have now simply bravely decided on the riskier path. The good argument regarding upcoming children also has to be looked at individually. For us, daycare fees would still be fairly affordable, grandmothers are nearby, there is Bavarian childcare allowance and child supplement as a civil servant. Also, thanks to good working hours, we could both soon work more again. Salary increases are also foreseeable and in 10 years the 1800€ installment will be much easier to bear. But the topic of a house must probably already be very important to you at such an amount for the whole thing to make sense. For us, owning a house is very important and we are willing to give up a lot for it. Of course, not everyone sees it that way.

So we are just starting our house-building project, which will end up with a total volume of at least 720k. Our net income is €5000 (plus Christmas bonus...), so quite comparable. Our equity is higher than yours at €200k. And our installment will be €1800 + special repayments. The amount of the installment doesn’t worry us personally at all, but that is something only you can decide yourself. What worries us most is that the costs during construction are not exactly predictable and the financing amount is simply already high in relation to our net income, leaving not much room for manoeuvre. We would have preferred an existing house, but for €720k we would have got a semi-detached house from 1985 with 130 sqm living space and 250 sqm land, and so we have now simply bravely decided on the riskier path. The good argument about upcoming children also has to be looked at individually. For us, daycare fees would still be fairly affordable, grandmas are nearby, there is Bavarian childcare allowance and as civil servants, child supplement. Also, thanks to good working hours, we could both soon work a lot more again. Salary increases are also foreseeable and in 10 years, the €1800 installment will be much easier to manage. But the topic of a house probably has to be very important to you with such an amount for it to make sense. For us, our own house is very important, and we are ready to give up a lot for it. Not everyone sees it that way.

Thank you for the honest words. The last sentence is probably the crux, I would guess. We like ownership, also the idea of having our own garden. But I don’t see the house as a status symbol or something particularly important ("I don’t have to have a house"). And then taking on such an amount is really tough. That’s why moving into a terraced house on the outskirts is not even conceivable; if already so much money, then in our desired location.