Is financing a new single-family house feasible?

I see it like this: You actually need to finance €515,000 currently. The "little" equity you have is more like an emergency reserve, because despite the fixed price from your house builder, you will have additional costs. 100% financing with 2% repayment and 20 years fixed interest rate (3.49% interest rate) results in a payment of almost €2,300! Not feasible with your net household income. Currently, no bank is willing to take the risk to finance so tightly.

I see it exactly the same way. The disposable income is around €1,300 according to average values. Too big a difference to still argue with "we are thrifty, salary increase etc." The bank will not consider that enough. As a controller, that wouldn't be enough for me either. Too much positive looking into the crystal ball. You simply have to look at the bare numbers.

I would do it, what if you earn 1,000 euros more after 1 year? And the construction costs/prices etc. have risen by another 10%? And that is probably not far-fetched with nearly 10% inflation.

The transformation from being as risk-averse as one can be to full risk always amazes me anew.

I agree with you. I had to smile at the sentence: what if I earn 1,000€ more in a year. What if I win the lottery next year and I buy a house for only 500,000 € now. There's still potential. I'm just going to say everything now…

We also don’t know here whether €1,000 more is even realistic. No job specification. Currently €2,300 net, presumably in tax class 1. That is just under €45,000 gross annual income. €1,000 net more would be almost €70,000. There are already industries where that is possible. However, one would have been underpaid here before. And even if I get a job offer that gives me €1,000 net more, the other conditions must also be right. Maybe I have a longer commute. I can already deduct something for petrol costs and car wear and tear. Also daily loss of time. Maybe I also have a more responsible position where you simply have to stay longer in the office. What use is €1,000 net more if, for example, instead of being home at 4 pm, I’m only home at 7 pm with the commute. Not so great either if I only see my child on weekends. So just saying here maybe I have significantly more in the short term is too optimistic. Unless my current employer has already given me a clear prospect and I can rely on that. That is naturally something else. But we don’t know any of this here. The thread starter has to assess that themselves. Speculating on that when buying a house is nonsense to me personally. Future salary increases are there so that I have more left at the end of the month for holidays, a bit of luxury, etc. But they are not there so that I can even afford the house! And if there are no salary increases, I’ll be left looking stupid and have a problem. That is too much like walking a razor’s edge for me.

The transformation from being as risk-averse as possible to full risk always amazes me anew.

Somehow the personal narrative has to be maintained.

To the OP: Just build smaller. Unless you absolutely want several children: why over 150 sqm? Are you planning a basement? Build on a slab!

Unfortunately, we live in times where a new single-family house represents the Porsche when it comes to living. You still live in an area with extremely cheap land prices. Use that, build small and relax.

That doesn't mean you should build cheaply.

Our turnkey house in timber frame construction with Kfw 40 plus, 120 sqm living space, now comes to €370,000 after the equipment appointment. We had calculated with €380,000, so suddenly 10,000€ gained. Yay!

But I already know 3-4 things coming our way that we simply didn’t have on our radar (curb lowering, more expensive utility connections, etc.).

Even though we have a good financial buffer, I will sleep poorly until the house is finally built and we move in.