Properly assessing house planning

Hello everyone

my lady and I are currently planning to buy our own house from a developer.
However, we are absolutely not sure if we are taking on too much.
Before I write too much, I’d better get to the facts.
Income: Me (36) approx. 3000,- (metal industry)
Woman (30) 1000,- (public service)
1 x child benefit 188,-
Equity capital 100,000,- plus about 40,000,- coming from a
apartment sale in about 2-3 years
Property: Mid-terrace house in an urban location (near city center Neu-Ulm/Ulm "Bayern") Kfw 70 new build, basement and garage
Price 419,000,- + additional purchase costs (total 5%)
Own contribution painting and flooring work (a building savings contract with 10,000,- would be dissolved for this)

We had a conversation with our house bank and received an offer/financing commitment with 1.8% interest and a rate of 1100,-. This rate matches our current rent (excluding utilities) + monthly savings amount, so that should work.
But the price is really weighing on us, is that realistic or normal with our income? ... after all, that’s equivalent to 840,000 DM :)

A tip regarding the 40,000,- (apartment sale) would also be interesting.
I thought maybe to take the bullet Kfw 70 loan and cover it with that amount. Or better to use it as a special repayment?

If any information is missing, just complain, I will add it then.

Hello Sparstrumpf, without location in your profile, square meter information, and offer, the 419000 cannot be assessed.

Location: Neu-Ulm Bavaria
So the house is just under 140m2 spread over 2 floors, the price refers to a "broom clean" handover.
Features underfloor heating on both floors + in the basement in the hobby room/office. Triple glazing, garage, etc.
Costs additionally include cadastre and Telekom. The rest is covered by the purchase price such as development fees, etc.
That regarding the purchase price view, what also interests us is whether this amount is realistic for our income?

Here are some threads listing the ancillary costs during construction, take another critical look at them. Then you should keep in mind that in addition to the installment there are also monthly ancillary costs (building insurance, garbage collection, property tax). Plus heating, telecommunications.... And then add buffers everywhere. During construction, there will be some 'small' bills from the surveyor, land registry office... Your installment seems realistic to me, but better take out €20,000 more than having to refinance later. For the apartment sale: there are repayment calculators, but usually it is better to make special repayments as early as possible. Then you will have more leeway in the follow-up financing (would the offer be for 10 years or longer?). What kind of repayment have you calculated?

Price 419,000,- +additional purchase costs (total 5%)

I have no idea how expensive or cheap houses or construction are in the Neu-Ulm area. You have to be able to evaluate that yourself, which offers are available or have been available in your region and determine whether the 420,000 is in the mid-range or comparatively too expensive.

But what I—and anyone else here who has ever built or is in the process of building (whether with a general contractor or managing builder)—can say is this: you pay extra for anything that is not included in the construction service description or in the factory/purchase contract.
That means: a surcharge for any kind of additional equipment. And based on experience, that will be the case for sockets, two-way switches, outdoor lighting, plumbing (better shower or tub), etc. Exterior facilities such as paving the driveway and terrace, house plinth, door canopy, garden landscaping, and plinth framing (I currently lack the technical term) will be the same.
This means: an additional sum x comes on top of the 420,000, which is in the five-digit range. If the construction service description is sparse, a 5 might even stand in front.

Merry Christmas!

Phew why is life just so complicated :) Yes, the price is okay so far. We are aware that additional costs will be added, we have estimated between €15,000 and €20,000 here without the kitchen! What interests us the most, however, are assessments of whether such a high purchase price fits our income. That is what makes us most suspicious. That is to say, a purchase price of €420,000 with a net income of €4000.