Question regarding the feasibility of financing

From your perspective, what should the approximate gross annual household income be to be able to consistently pay off 3000€/month

Opinions vary widely depending on the standard of living.
Personally, we have been doing very well for years with 2.5 to 3k net after rent and savings.
Accordingly, we can spend everything over that for a home.
If income increases, then accordingly more. For us, consumption does not automatically increase with rising income.
But everyone has to decide for themselves what they like to spend their money on.

If it’s important for you to stay in the city, but a garden is unimportant, then a condominium or a mid-terrace house would also be okay, right?

Is there nothing in the budget for that either?

PS: I agree with you that the real estate market is just frustrating. But we decided to simply pay what we can conscientiously afford because it is ultimately worth it to us.
Just complaining doesn’t get you anywhere and makes you unhappy.

Opinions vary widely depending on the standard of living.
Personally, we have been doing very well for years with 2.5 to 3k net after rent and reserves.
Accordingly, we can spend everything above that on a home of our own.
If income rises, then accordingly more. For us, consumption does not automatically increase with rising income.
But everyone always has to know for themselves what they like to spend their money on.

Yes, I see it similarly. You don’t really think much anymore about whether you spend, for example, €5 more or less on the internet, but you also don’t suddenly start eating out every night or throw your money away on luxury. Backpacking is still more fun than 4 weeks in a luxury hotel. The only difference: the last 2-3 nights before the flight home after 3-4 weeks of backpacking are spent in a better hotel with a pool and sea view (via Booking.com at a special price ). You just stay true to yourself.

If it’s important for you to stay in the city, and a garden is unimportant, then a condominium or a mid-terrace house would be okay, right?
Is there nothing in the budget for that either?

That’s exactly where the problem lies. The garden is extremely important. That’s why my calculations usually point towards around 1000 sqm. Because that’s basically the size where I think you can build nicely and still have enough garden. And exactly for that reason terraced houses have always been out so far. I also once saw a house for €600,000 that would have needed a complete renovation/refurbishment. I would have immediately booked a meeting with the bank if the plot hadn’t been only 600 sqm. Because I love putting a lot of work into it and making our idyll out of it, but with 600 sqm there simply is no potential for the outdoor area.

We had considered buying a condominium as an interim solution. But try finding one with >110 sqm in Erlangen that doesn’t cost €550,000 or more. And that’s too much money for a "transitional" solution. With interest, you quickly end up in a risk area where switching to a house could lead to too big a loss. A 20% loss on €150,000 is a different matter than a 20% loss on €550,000. And in comparison you can rent 125 sqm for €1000/month (cold rent). Renting is "lost" money, but still more attractive for us.

In my view, prices here are not suitable for interim solutions. Go all out or don’t bother at all.

PS: I agree with you that the real estate market is just frustrating. But we decided to simply pay what we can in good conscience because in the end it’s worth it to us.
Just complaining doesn’t get you anywhere and only makes you unhappy.

That’s why we have almost given up searching. Maybe I’ll tell my last experience someday, but so far we always ended up concluding: Take more than €1 million in hand or remain tenants. So, we remain tenants. Because the thought of a loan of €600-800,000 makes me queasy.

I also doubt, based on your statement, that someone who can manage a monthly rate of 3,000 euros spends their camping vacation in a tent. Here too, the standard of living becomes apparent, and one either owns their own motorhome or rents a correspondingly well-equipped one for the holiday, ultimately ending up at the same price as an all-inclusive vacation in a nice hotel.

I believe that is really a matter of personal preference. Because I find camping simply fun. And I find backpacking simply more exciting and a bigger experience. I don’t do these to save money, but because it is something completely different. A different experience. Currently, I could imagine managing 3,000€/month. But just be unemployed for 1 year or stay on parental leave for 2 years (or 4 for 2 children, for example), and the savings melt away quickly. Unless you made less down payment at the purchase and took out 50-100,000€ more credit and therefore pay correspondingly more interest. It’s a calculation. But with these amounts, it’s a dangerous calculation because we can definitely manage 500,000€ in the worst case together as a family. But 1 million euros is a different league. In most regions, that’s 2-3 houses you would have to sell for that.

The garden is extremely important. That’s why my calculations usually lean towards 1000sqm.

THAT’s exactly the point that cannot be reconciled with centrality, if you don’t have a lot of money. I would also like to have 3000sqm garden with a football field, adventure playground, orchard meadow and pool. But unfortunately we’re not in “wish for whatever you want” mode, but rather “that’s just how it is”

THIS is exactly the point that cannot be reconciled with centrality if you don't have the really big money.

Especially the really big money The 600,000€ purchase price (plus interest etc.) that we would wish for would already be big money for most people. Let alone 600,000 for 600sqm with required complete renovation

Purely personal assessment. To afford a 3000 EUR installment with 2 children (whom we already have and whose costs we can therefore estimate), I would like to have about 3000 - 3500 EUR left for living expenses permanently. So roughly 6000 - 6500 EUR net per month. That would certainly allow for a good life. Vacations would be possible, childcare paid for, saving for a car/retirement/other things would be possible, and normal consumption for us. In the short term, 5500 EUR per month would surely be possible for us, but in the long term that would be too little for me. For us personally, it would also be important that the 6000 - 6500 EUR are not earned by 2 full-time jobs (We each work 80 and 70 percent, respectively). Because torturing myself with children and 2 full-time jobs to afford the 3000 installment would not be my goal. Then we would rather give up the dream of the house or limit ourselves so that it doesn’t have to be the 1 million place with 1000 sqm, but rather the townhouse.