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

If the OP had written from the start that only €5,000 were available, the majority would have dismissed it. But I think he has already realized that this won’t be a walk in the park.

Christmas and holiday bonuses are also available. But yes, I already knew when I opened the topic that it would be difficult. Yesterday we calculated various scenarios with child(ren). Our preferred option would be: My wife: 1 year parental leave, 2 years at home, working 50% until school enrollment -> This results in a deficit of €55k until school enrollment (monthly expenses of €500 for the child) And a second child is not included. We have no parents nearby who can support us with childcare. We would therefore have to consider this amount additionally as a loan in order to bridge this period.

There were critical voices here in the forum. The bank would definitely have given us up to 500k, but above that one would have to take a closer look, our advisor said.
We now have 470k and will manage well with that, as it looks at the moment.
Our installment is €1800. We want to have 2 children in a few years. However, we can currently save a lot so that we can make special repayments until the children arrive or, above all, save ourselves a liquid reserve.

Thank you for your answer. I still have a few questions since you are in a similar situation.
Are you already in the house?
May I ask how old you are?
What is your monthly savings rate with the €5k income and the €1800 loan installment?

1800 euros is quite a lot.

How high are the interest rates?

And why does the bank say that, does it know you?

Don’t you have any equity?
And how is the salary distributed? If the wife earns more and goes on parental leave, it’s clear that it will be tight.

Since we have saved more than 3k per month so far, we don’t find the 1800€ a particular problem now. At least until children arrive, that is the big unknown.

We had 200k equity to contribute.
We pay 0.8% interest.
We are at our house bank and it has known both of us for almost 30 years ;-)
But we also didn’t push further on how much over 500k would still be possible because that is too much for us.
Income is currently quite similar, but my wife will soon earn more than I do.
However, with children, we both plan to work 70-80%. We definitely do not plan to stay home with parental benefits for longer than 1 year. We certainly can’t cover the installment with just one income...

Thank you for your answer. I have a few more questions since you are in a similar situation. Are you already in the house? May I ask how old you are? How high is your monthly savings rate, with the 5 k€ income and 1800 € rate for the loan?

We are almost 30 and still in the construction phase. We have a few months left until completion. I can't tell you the savings rate because of that. Since we used to save mostly between 3000€ and 3500€, we are now planning with an additional savings rate of 1000€. The ancillary costs will increase, and you regularly have purchases at the beginning as well. We are actually quite sure that it will work out, but our parents also support us. Not with a fixed amount, but here a lamp is paid for, then a plant is brought... That already helps.

We are almost 30 and still in the construction phase. We have a few more months until completion. I can't tell you the savings rate because of that. Since we were usually able to save between €3000 and €3500 before, we are now planning with an additional savings rate of €1000. The ancillary costs will increase and you also regularly have purchases at the beginning. We are actually pretty sure that it will work, but our parents also support us. Not with a fixed amount, but sometimes a lamp is paid for here, then a plant is brought along... That already helps.

Well then you have a few more years than we do to build up a buffer for parental leave. €3000 - €3500: Wow, that's what I call a savings rate. Are rental costs deducted from that? Or do you not have any? Then it would be possible for me. You plan the €1000 in addition to the rate, right? Over three years, that would be €36k and thus a decent buffer for the first child. Do you have the option to change the repayment rate?

Christmas bonus and holiday pay are also available. But yes, I already knew when I started the topic that it would be difficult. Yesterday we calculated various scenarios with child(ren). Our preferred option would be: My wife: 1 year parental leave, 2 years at home, 50% working until school enrollment -> This results in - 55 k€ up to school enrollment (500 € monthly expenses for the child) And a second child is not taken into account. We have no parents nearby who can support us with childcare. So we would have to consider this amount additionally as a loan to bridge this time.

500 € per month? So daycare would only be until age 3, after that at least no full-time place because only part-time work is done. I find 500 € way too much... How do children of low earners grow up? That should be left to everyone themselves, but especially at that age there is a lot of saving potential. ... But go ahead and buy.... The good used stuff has to come from somewhere after all