Is buying property now sensible? Experiences?

Hello and greetings to everyone! As a "newbie" here in the forum (the first step out of anonymous lurking, so to speak...), I am curious about your assessment and especially full of anticipation for your advice. My partner and I (both 33 years old) currently have the chance to acquire a really (for us) beautiful plot of land. The plot is located in Lower Saxony (rather rural). My partner is a civil servant and I work as an employee. About the plot: approx. 1,013 sqm, new development area, around TEUR 190 plus incidental costs. Obligation to build by mid-2026 Our financial framework is as follows (net): Me: 6.8 TEUR p.M Partner: TEUR 2.7 TEUR p.M. Equity currently 100 TEUR (mostly in stocks), no debts. Given the current situation of high construction prices and high interest rates, we do not want to build at the moment. Rather, we plan to build in the second half of 2025. After weighing all (to my knowledge) pros and cons of separate financing of land and house, I have currently requested a loan for the land and received the following offer: Net loan 170 ETUR at 3.78% p.a. nominal, fixed for 10 years and 4% repayment (equity contribution approx. 33 TEUR). At the same time, I have negotiated with the bank that it will subordinate in rank up to an amount X in 2025 (=> house financing), so that I should have maximum flexibility in choosing the financing partner then (if I see no mistake). Despite this, which I find a really good offer, two points are currently troubling us. On the one hand, we are of course massively annoyed that we are obviously 2 years too late here (so much for the emotional point) and on the other hand, we have massive respect for the overall financing of house and land. I actually do not see that we should have to pay more than max. (!!) 3 TEUR later for the house repayment - I would rather like to see an amount of 2.5 to 2.8 TEUR here (wishes...). Now I have of course also used Excel with the following parameters: Equity 2025: 120 TEUR (65 TEUR currently left and savings rate 2.5 TEUR / month) Interest: 4% p.a. (pure guessing) Initial repayment 2% My result:

460,000 €	Possible total financing (equity plus borrowed capital)
10,000 €	Buffer
40,000 €	Incidental costs
20,000 €	Kitchen
390,000 €	Subtotal
35,000 €	Outdoor facilities
355,000 €	Construction costs

After deducting all the mentioned items, can we actually only afford a house for 355 TEUR? Am I overlooking something here? Am I making a mistake in thinking or is the situation actually that bizarre right now? Do you perhaps have ideas or can give tips regarding your approach? We are definitely extremely insecure at the moment... Thanks in advance and have a great start to the weekend! Basti

The question is whether you can get the house you want for 355,000. And do the stocks yield more than 4% plus capital gains tax? If not, equity as far as possible into the land.

At the current prices, rather not. Here I see "our" house more around 450K EUR...

The question is whether you can get the house you want for 355,000. And do the stocks yield more than 4% plus capital gains tax? If not, equity as much as possible into the land.

And regarding the stocks: Yes, although of course I don't have a crystal ball here either. But so far the annual return has been well above this target.

You have 9500 euros net per month, of course, significantly more is possible.

460,000 € Possible total financing

Where does this number come from? Thought about it yourself, bank?
What are the respective ages?

Because actually with the:

Our financial framework is as follows (net):
Me: 6.8 kEUR p.M
Partner: 2.7 kEUR p.M.

here:

Savings rate 2.5 kEUR / month)

there should be much more possible and then the total financing could also be much higher.