Is financing feasible or are we overextending ourselves?

Not everyone drives a BMW

Nobody here says that either!

As I said, my wife is very undemanding when it comes to cars.

Who claims otherwise?

Do people do that? I don’t understand the question? Do you have to have 2 cars if one can bike to work,

No, probably not, but: My question is justified here since both cars are financed, so not saved up, nor do they have any value if you get rid of them. Whether big or small doesn’t matter here. And you just have to be honest with this sentence

When my wife no longer has to commute (as soon as she finds a job in the city) the second car will go.

Where you have already backtracked with “from big to small”. Well, and your 10 km can easily be covered by bike Regarding your planned EL: unfortunately hardly feasible with a general contractor. Maybe you can leave out trades, yes. But then it has to make sense. Are you taking on too much? Hmm, it would be too much debt for me. You basically never or hardly had to save. Will that work? And all extras are supposed to be covered by the lump sum...

Total income 4700 Euro currently optional 5000 Euro if I allow myself to be raised to 40h Rate house ~1500 Euro (400-430k Euro loan) Additional costs 300 Euro Total house 1800 If my wife no longer has to commute (as soon as she finds a job in the city) the second car will be dropped.

Hi, I’m not one of those who immediately dismiss if someone has little/no equity – we didn’t have any either – but I find the loan amount of 430k way too high for your income. Don’t get me wrong, we have about the same income and also had hardly any equity. But our (existing) property only cost 220,000 €. We pay 1,200 € per month rate (full amortization) plus 600 € additional costs + reserves. In 6 years it will be only 900 € plus additional costs + reserves. So you have, with almost twice the loan amount, the same monthly costs calculated as we do. And unlike us, you have a child. How high is the remaining debt then? And are you sure that 300 € additional costs are enough? That your wife will find a new job in the city, is that wishful thinking or safe?

I see it similarly, it can work, but personally, I think it comes with too many pitfalls and is quite tight in the calculation. Additionally, one or two more children are planned, the wife wants to change employers (income secured?), and unfortunately, the equity is a bit too low. All in all, I would personally rather advise against it and recommend either scaling back the wishes or looking for an existing property (also in the range well below 400,000). Two cars on credit also only somewhat indicate that you have saved a lot and just recently spent on newer cars.

Basically, I think it’s manageable, but it would be good if you switched to full-time. The 300€ more at your free disposal, meaning uncommitted (!!!) money, already makes a significant difference.

And indeed, you haven’t saved much, where does that come from? Parental leave of the woman, not in the job long yet, big wedding? Or have you simply spent your money well so far? Then the house would mean significant sacrifice so that you can manage in the future.

Whether the 30k€ for the incidental acquisition costs are enough can’t really be said with the information available. It depends on what exactly the real estate transfer tax applies to (land, or house+land), whether there is a broker involved... how does that look?

The question of where your money has gone instead of into equity you have to answer yourselves. But you should be honest about it, as most people find it difficult to downgrade a lifestyle they have once acquired (that you want to drive a smaller car helps little, since the current cars are also "just" leased).

Depending on demands or minimum needs, your existing equity is barely enough to maintain a small emergency reserve, pay for a kitchen, buy new lamps or furniture, and a small used car.

Then you probably have not paid for outdoor facilities yet (or are they priced into the 430,000?). I missed how much salary your wife earns, but with a second child one would also need to calculate how tight the finances will become.

I consider the 300 in ancillary costs to be somewhat underestimated and I probably overlooked reserves for repairs, if you mentioned them somewhere. In my opinion, you can save them in the first years, but eventually you have to remember that the house ages.

The question of where your money went instead of into equity you have to answer yourself. But you should be honest about it, as most people find it hard to scale back a lifestyle once acquired

Oh yes, that's true. You get used to the money you have and then have one or the other habit in how you spend it, also for "goodies" that maybe aren't necessary. Giving them up is then still difficult...