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

With us, it will be about 500k credit. Of that, 120k€ is a KFW loan, which is to be paid off in 10 years. The same applies to the property with about 41k€. The bank loan is therefore about 340k€. The plan is a total installment of 1,550 € and with special payments and savings, to pay off the KFW and the property earlier within 10 years. Then the installment of both will be added to the bank loan.

I always prefer to be pessimistic (when it comes to finances) and rather expect the worst-case scenario. For me, the idea of constantly paying such a high amount monthly is very surreal.

If you ruin your night’s sleep/health with the installment, leave it be, if your apartment rent overtakes your installment, also a bad feeling and it’s only a matter of time

If you ruin your night’s sleep/health with the payment, forget it,
if the rent of your apartment surpasses your payment, that’s also a bad feeling and it’s only a matter of time

We are in the comfortable situation that as long as our landlord is alive (unfortunately already elderly), there will be no rent increase – they only want long-term tenants without problems. But this situation can, and that is why the consideration of buying a property, end quickly.

For a loan of 500k (and it seems you need at least that), in my opinion, a payment of 1800 EUR should be made permanently. If it is now about short-term outages (2 years of parental leave without parental allowance), a buffer must be built up for this period in advance. If that is not possible, I would not feel comfortable with the financing and would feel too tight. According to your figures, you would have just under 5500 EUR monthly. Minus 1800 EUR payment, you have 3700 EUR left for living expenses + some buffer from your bonus. That should be enough for three people. One year of parental leave for the second child should look something like this: you 3k (+ possibly child allowance in public service?) + she about 1.5k parental allowance + 2x child benefit. Minus 1.8 EUR payment leaves about 3k + some buffer from your bonus. It only really gets critical if your wife stays at home longer than 1 year. Otherwise, I see it as doable if you are not excessively addicted to consumption. Permanently lowering the payment further I see as dangerous. A healthy initial repayment is about 3%. That also means a certain forced savings through the automatically deducted payment. But permanently I would not go with a smaller repayment. If that makes you feel more secure, you simply agree on at least 2 repayment change options with the loan. Then you could reduce the payment for a certain transition period and then increase it again.

Matter of time, many have already paid the same rent amount in DM, 20 years ago, a doubling of the current rent in 20 years is not unrealistic. The rate is constant, the asset difference at the end of the term amounts to 1 house, with appreciation 2 houses