Is financing feasible? Stuttgart's Speckgürtel

Hello everyone,

we would like to build soon or renovate/modernize an older property. Currently, we have a new construction project in mind, see the end of the post. We need an assessment of whether the targeted financing is feasible.

General:
He (32) + She (32), married, 1 child (2 years), another child on the way.

Income and asset situation:
He €4,000 net base salary, She €3,000 net base salary (part-time 30 h)
Holiday pay/Christmas bonus and profit sharing are added (another 1.5 monthly salaries)
She temporarily (1 year from 11/2020) receives parental allowance €1,800, afterwards back to 30 h part-time.

Additionally child benefit €200 (from 11/2020 €400)

Equity for financing: €140 K
Total equity: €170 K

Expense situation:
Housing costs:
- current cold rent €1,550
- current warm rent €1,750
- electricity included
- gas included
- water, sewage included
- waste fees included
- telephone, internet, mobile phone €50 p.m.

Mobility costs/insurance costs/living expenses/miscellaneous

We have two cars (1 paid off, 1 financed with €300 p.m. until 01/23).

Living expenses approx. €1,000 p.m. This covers groceries, drugstore, fuel, etc.

Additionally:
Kindergarten: previously €700 p.m. Now changes to €250 p.m. (with child no. 2 again €250 p.m.)
Car insurance and tax €90 p.m.
Other insurance €30 p.m.

The difference to the savings goes toward consumption/vacation etc.

Savings:
Currently we save €2,400 monthly.

Regarding the construction project:
New construction project semi-detached house in the Stuttgart metropolitan area. Total volume including purchase costs approx. €850 K. Loan amount €710 K. Target installment to be debt-free before retirement approx. €2,200.

Thank you very much for your opinions on this.

I am curious about the opinions. We are also shortly before building a semi-detached house in the [Speckgürtel] of Stuttgart and can fully understand your situation. The amount does not surprise me; it has become madness here by now.

How large would the plot and the semi-detached house be?

€2,200 is 30% of the household income (excluding special payments). Saving ability has already been proven. Easily manageable. BUT: It cannot be managed with salary alone, that must be clear. This should not be a problem with banks.

Absolutely feasible with your income and saving behavior. A conceivable concept for the desired rate would be a 25/30-year full repayment loan. This way you have interest rate security and will definitely be debt-free before retirement. With your quite high savings rate, a shorter term combined with annual special repayments would also be possible.

BUT: It is clear that it cannot be managed with just one salary.

As long as the two jobs are "decoupled" in terms of crisis (e.g., different sectors), the situation with two roughly equal incomes is already comfortable.

A lot has already been said. It works for me too.