Is the construction project affordable? 570 k€ loan with a 5300 € salary

- We have saved up the equity ourselves. Neither inherited nor received any gifts.

I didn’t want to know more. Do it! There are many here with higher incomes who are 10-15 years older and still cannot save up the equity.

We know that financing will not be easy. Otherwise, it would be too simple.
We cannot change the high land prices in Bavaria, especially in the area of university towns, nor can we influence construction costs. The fact is, both are rising significantly.
Therefore, the question is, does it make sense to wait and "save" more? Savings interest has long since disappeared.
But will the situation improve because of that? I fear not.
If prices rise by only 3% annually, that's about €20,000 per year on €650,000. So I have to build up this amount every year just to keep the required loan amount constant.
If real estate prices fall again at some point, financing will become easier. But no one knows if or when that will happen.
In addition, with each year of waiting, the time for repayment decreases, and I want to be finished before retirement.

We have also considered existing properties. Unfortunately, in my opinion, they are totally overpriced for their condition.
And there are hardly any building plots without developers anymore, and if there are, there are at least 500 applicants for 100 parcels.

We have thought about it a lot back and forth. Yes, it is difficult, and that is why we do not take the decision lightly.

By the way, the savings bank and the financing advisor from Interhyp say that everything looks very solid. We are much more skeptical about that.

To me, all of that sounds more than reasonable. Do it, it seems like it’s definitely exactly what you want.

You should be aware that the bank and the broker would even give you the green light with lower incomes and higher expenses.

A healthy financing is one that does not consume more than 1/3 of the monthly net income for housing. Always under the condition that the repayment is chosen so that it is finished by retirement. That is the rule that almost everyone here would probably agree with. You are within the rate there, but I also count the monthly additional costs, and with that you are clearly above it. Basically, the income will probably increase as well, so that in the next few years it will approach the healthy 1/3 again. But you have to feel comfortable with the burden.

You did not mention anything here about bonus, vacation pay, profit sharing, and so on. Hopefully, you did not state your annual net income divided by 12 months as income here, right? Or I missed it.

Your 780€ surplus will be quickly eaten up by childcare costs and the surrounding expenses for 2 children.

The topic of childcare and work model including income with children is your unknown factor.

Otherwise, one should not be misled by the age. The OP is not 25. The OP borrows much more than many here and only starts repayment once he has moved in. That does not happen at 33. He only starts repayment 2-3 years earlier than others, and that with under 3% repayment. That costs him at least 1 more year. So, the additional €150k loan only corresponds to an age advantage of 1-2 years.

But that is just my personal opinion. The important thing is in the 2nd paragraph.

You should be aware that the bank and the broker would even give you the green light with lower income and higher expenses.

A healthy financing is one that does not consume more than 1/3 of the monthly net income for housing. Always under the condition that the repayment is chosen so that it is finished by retirement. This is the rule that almost everyone here would agree with.
Everything else is up to you.

You have written nothing here about bonuses, holiday pay, profit shares, and the like. Hopefully, you have not listed your annual net income divided by 12 months as income here, right? Or I overlooked it.

Your €780 surplus will be quickly consumed by childcare costs and related expenses for 2 children.

The topic of childcare and work model including earnings with children is your unknown factor.

Otherwise, one should not be blinded by age. The OP is not 25. The OP takes on much more than many here and only starts repayment when he has moved in. That does not happen at 33. So he only starts repayment 2-3 years earlier than others and that with less than 3% repayment. That costs him at least another year. So the €150k higher loan is only offset by an age advantage of 1-2 years.

But that's just my personal opinion. The important part is in the 2nd paragraph

You can always talk everything down :D And why is the topic of childcare and work model including earnings with children an "unknown"? You know examples in the company who are on parental leave? You can calculate your parental allowance? You know your monthly expenses if you have kept a household budget? I see no "unknown."

The population of people who build a house at 25 should be very small. Unless a large inheritance, a successful YouTube channel, or a startup. The average age of property buyers in Germany is just under 40 years; you can look it up.

You can also talk everything down :D And why is the topic of childcare and work model including income with kids an "unknown"? Do you know examples in the company who are on parental leave? Can you calculate your parental allowance? Do you know your monthly expenses if you have kept a household budget? I don’t see an "unknown" there.

The total population of people who build a house at 25 should be very small. Unless it’s a large inheritance, a successful YouTube channel or a startup. The average age of homebuyers in Germany is around 40 years, you can look it up.

I agree... In our new development area we are the youngest builders at 30 and 24... The majority is even over 45 - over 50. The OP has saved well, is still young and has a long time to pay off, the loan amount is not too high and he also earns a decent salary.

So honestly: If people like that couldn’t or weren’t allowed to build a house anymore, then there would definitely be about 30 places to be reassigned here in the new development :D Sometimes loans of 500k are taken up - family with 3 children, 45-50 years old and the wife long retired... They manage it "somehow" too - sure, you shouldn’t orient yourself on that, but to me the OP’s circumstances look very very healthy.

You can also badmouth everything :D And why is the topic of childcare and work model including earnings with children an “unknown”? You know examples in the company who are on parental leave? You can calculate your parental allowance? You know your monthly expenses if you have kept a household book? I don’t see any “unknown.” The total population of people who build a house at 25 should be very small. Unless a large inheritance, a successful YouTube channel or startup. The average age of property buyers in Germany is just under 40 years, you can look it up.

Then I built young at 36 with 2 school-age children. Amazing.. I’m not badmouthing everything but the 1/3 rule exists and is indeed a sign of healthy financing. Also the 5% annuity is a rule that indicates healthy financing. Neither is adhered to. I don’t write regularly without reason that the repayment is too low with the low interest rates. We ourselves have just now reached 5%. Two years ago many would not have told OP anything about healthy, unfortunately that is now the new reality, otherwise no one would build a single-family home anymore. And yes the unknown is the life, care and work model with a child and that remains unknown until full work resumes and the relevant costs incurred are known. What is known is the current salary (not even the parental allowance and its duration is known, since you can decide short-term to take it for 2 years or have another child), and a possible installment + current expenses without a child. Nothing more... What seems healthy is the mindset. But that also has to be implemented first.