Land available but only a condominium?

I am reading about above-average earnings here. But then complaining about the loan amount. Build without a cellar and garage. Then the installment will be very similar to that of a rental house.

The thing is actually pretty clear. The OP has a project, the estimated (!) loan volume amounts to €600k.

At 4% interest and 1% repayment, that is a €2,500 installment over 40 years. Installment 48% of €5,200 household income (I assume that €5,200 is earned by both working full time).
€2,500 installment is, as he himself already wrote, unrealistic and no bank will do that.

Even if the project is reduced by €100k, you end up with about a €2,100 installment.
I think you should get to about a €1,750 installment in order to have a somewhat healthy financing.
That would be €420,000 per head – which might still be enough for a very simple, small house under certain circumstances.

So: massively scaling back expectations seems to me the only alternative if you want to go through with it.

The thing is actually pretty clear. The OP has a project, the estimated (!) loan volume is €600k.

With 4% interest and 1% repayment, that’s a €2,500 installment for a 40-year term. Installment is 48% of a €5,200 household income (I assume that both earn €5,200 full-time).
€2,500 installment is, as he himself has already written, utopian and no bank would do that.

Even if you reduce the project by €100k, you end up with about a €2,100 installment.
I think you should come down to about a €1,750 installment to have a somewhat healthy financing.
That would be €420,000 per head – which can still be enough for a simple, small house in some cases.

So: dramatically scaling down demands seems to me the only alternative if you want to go through with it.

Our result was roughly at the installment you call healthy, with a somewhat higher income. I don’t think I would go much higher either. I’m not a fan of the "percentage of household net income" method, but you just have to listen to your gut. I would also feel uncomfortable with a €2,500 installment. That can quickly break your neck if something unforeseen happens.
In addition, I can’t quite reconcile myself with the "native" term of our loan either. We have fixed it for 20 years and plan to use monthly savings — which are still possible with our current installment — to invest the money on the market and in the best case pay off the remaining debt when the fixed interest period ends, or, in the more likely case, at least massively reduce it so that we don’t end up paying off the house for more than 30 years.
I can see this clearly with my sister. She’s now in her mid-50s, the house is basically paid off, she has massively reduced her working hours and enjoys her garden and hobbies. Money isn’t everything in life. ;)

Our compromise was less about the size of the house but rather the location. We moved very rurally, where building land is still extremely affordable. If you don’t want that and prefer to stay in the metropolitan area — which I can fully understand, since we only recently completely uprooted ourselves because we wanted to live HERE — then you have to make compromises elsewhere. But you will hardly be able to afford the "jack of all trades" (basement house with 2 floors and garage in a great location).

At 4% interest and 1% repayment, that is a €2,500 installment over 40 years.

The OP is calculating with a Z15 loan, which is a subsidized loan from the L-Bank, interest-free and fixed with 2.25% repayment for 15 years. One can expect a good €200k, we’re talking about ~€500/month. If the second loan comes out to about €300k, there is definitely room to finance something with a €2,000 installment. Not much, but just about. With €600k the window is closed.

200,000€ - z15 at 2.25%: 413€ 400,000€ - 4% interest, 1% repayment: 1666.66€

Without the garage, the second loan is somewhat lower and you end up with under 2000€ per month. That should be within the realm of possibility given the income.

200,000€ - z15 at 2.25%: 413€ 400,000€ - 4% interest, 1% repayment: 1666.66€

Without a garage, the second loan is somewhat lower and you end up below 2000€ per month. That should be feasible given the income.

I don't quite understand that. There are financing threads with higher incomes and lower rates that are judged much more critically.

You have to assume that a part of the second income, at least about 40%, will initially drop out. There is also more offspring planned, so probably a second parental leave. We would then be at about 4,400 € household income with the partner working part-time. Financing with a 2,000 € rate then?