Own house - Insecure due to finances

Hello everyone

we are new to this forum at least as active members, until now we were the silent readers ;)
Well, our concern is what a surprise the wish to own our own little house.
Unfortunately, the prices in our region have skyrocketed unbelievably, so there is a great uncertainty whether this is still possible for us at all.

A short introduction about us, we are 35 (him) and 30 (her) and have a soon to be 5-year-old child.
Family planning is finished, nothing comes in between ;-).
Finances:
Salary him: 2700-2900- depends on the shift schedule. additionally Christmas bonus and vacation pay which I do not want to include, permanent contract with 20 years company seniority.
Salary her: 650- part-time, permanent contract in the public service. Also with WG and UG.
+Child benefit 1x
So a total of about 3600- per month, which I considered solid so far, but in my opinion maybe not necessarily outstanding for today’s real estate prices.

Current expenses for our apartment are 800- plus additional costs 300-
In the last few months we kept a household budget and came to about 500- remaining after deducting all costs, meaning rent, additional costs, living expenses, car, saving rate of 300- etc. and monthly allocation of all yearly costs such as insurances etc. in other words everything you need to live and also sometimes make an outing with the child, meaning leisure activities.
Equity is 85,000- and a building savings contract with a current balance of 10,000-.

What we have thought about is that we could and want to pay a rate of about 1200-.
But unfortunately the real estate market in our area is not exactly cheap.
Used houses start at about 380,000- + additional purchase costs, whereby these sometimes still need to be renovated, so here we are certainly at 420-430,000.
New builds in the form of terraced and linked houses are also in the region of 400,000- + additional purchase costs. Single-family houses I would consider unaffordable.
Actually our question is what you think, is a rate of 1200- realistic. We also calculate 300-400 additional costs with our finances.
And what would be realistic as a financing amount with this rate + equity?
We are simply uncertain and do not want to become unhappy.
Honest opinions and criticism are welcome!
Hope the text is understandable. Thanks in advance.

What I forgot to say is that in the short term there will be an additional almost 300- free in monthly surplus. Additionally, an inheritance in the form of an [EGW] amounting to about 40,000- is expected, but I hope not too soon ;) Although I don’t think it’s wise to count on this, who knows what the future holds for us. And we are aware that we have to tighten our belts in some things! That was just an overview of the here and now. And why can’t I edit my own posts? :)

Honest opinions and criticism are welcome!
.

.. you are a programmer after all, there is an Excel program, you develop a table, on the left all your own income + possible positive and negative thoughts or possibilities, on the right all the expenses you have, but all of them, living expenses, rent, food, child, car, vacation, purchases, all monthly payments due (don’t forget the new car) etc. etc. plus allowances and additional costs for the coming years, in the end you have the amount left for paying for your own house .. from that you also determine the size of the house .. it’s that simple .. Excel is simply wonderful for something like this, because you can enter formulas ...

Yes, of course, we have done that so far. But it is still interesting to hear what outsiders have to say about it, especially when looking at the property prices. The question is... are 400,000+ realistic with such an income and equity? You do not commit and invest that much money every day!

Let's do some calculations:

The incidental purchase costs for a purchase price of €400,000 amount to approximately 5.5%, so €22,000. Once these are paid, €63,000 of your equity remains, which would result in a loan-to-value ratio of just under 85%.

With a large German direct bank, the interest rate would then be 1.85% (10 years fixed interest) or 2.35% (15 years). This would result in an initial repayment rate of 2.4% or 1.9% with an installment of €1,200. The remaining debt after the first fixed interest period would then be €247K or €220K. That should be manageable with a constant installment, unless there is currently a high interest rate. But whether the house will be paid off by retirement is questionable.

So it should probably stay around €400K. But of course, I simplified the calculation. I don't know if it makes sense to use all the equity or if it may be needed elsewhere (kitchen?). There could of course be better conditions. Subsidies are not taken into account. The salary will increase. ...

Let's do some calculations:

The incidental purchase costs for a purchase price of €400,000 amount to about 5.5%, so €22,000. Once these are paid, €63,000 of your equity remains, which would then result in a loan-to-value ratio of just under 85%.

In Schleswig-Holstein, the real estate transfer tax alone is 6.5%. Add 2% for the notary, and the amount is around €40,000, thus losing half of the equity.

You earn your regular salary by working in shifts and very likely being in tax class 3. That can change quickly and probably does not have much potential to increase anymore, right?! And the wife in part-time? Well, okay.

As already said, financing is doable; the equity is solid. Just go to the bank. Buying a house has high additional costs but has a clearly defined initial price. Building has so many additional costs no one ever thinks about. Besides, it can take years until the garden becomes really livable (hedges have to grow...).

The bank will surely say it is doable too. Just go and see exactly what you get for your money.