Respect for large numbers - is the financing feasible?

Well, the installment would probably be too high for me if I were in your shoes. After all, it is around 50% of your net income. In absolute numbers, it may sound like a lot when a single person still has 4k left to live on after deducting the installment, but for a family it wouldn’t be "much," especially not with expensive hobbies, which you apparently also have. So it certainly fits for you now, but then you have less room for changes, or rather are less free, less financially independent than one could or would expect at that income. Too much risk or lack of freedom taken on without necessity, that’s another way to put it. That’s my subjective impression so far.

Regarding other points: If I were you, I wouldn’t build smaller than 170 m². Even if many others would dispute the following claim, I’ll state it anyway: A small house and an expensive plot do not go together. Space is luxury, and whoever spends that much money on a plot won’t want to design the house purely according to economic principles. Four children’s rooms means at least six rooms in total – that may be possible on 170 m², but it is miserably Spartan, modest like a shotgun house. I expressly have resale value in mind here as well.

Then it is also strange to me what questions you ask as a bank employee. It’s like me asking here in the group as a nuclear power plant chimney sweep how often my chimney at home has to be cleaned. In your position, you should be sufficiently informed about financing basics, market conditions, and so on, even if that isn’t part of your daily work, while your private circumstances can only be assessed by yourself anyway. So, from that perspective, I rather suspect a deeper insecurity.

Higher income is almost always associated with significantly higher risk. When a mechanical engineer in a clerical position and a geriatric nurse want to build a house together with perhaps 4,000 euros net, the income is simply much more secure than that of a senior bank employee. The two can always find a similarly paid job.

I am also allowed to review applications, and it often happens that former senior employees / managers in their field apply to us for simple clerical positions after sometimes years of unemployment. But such people are simply overqualified for these positions; on the other hand, they can no longer find positions with managerial responsibility. These people end up in a job vacuum. They have gathered too much leadership experience for simple positions, but are too poorly qualified for management positions, or younger, better applicants keep coming up again and again.

I have experienced top managers having to move from positions with salaries of several 100k to middle-management positions with just under 100k.

I have also seen senior employees in their mid-50s being sidelined because young managers in their early 30s were coming up. The company always finds a way to get rid of unwanted employees.

And such risks should be taken into account. That is all it is about.

@TE: Don’t let yourself get annoyed.. I know this all too well here (keyword envy). We are currently all-in at >1 million (land 330k). We built quite large (~225sqm) with some bells and whistles.. but no luxury. And that brings me to my point: With your salary you surely have certain "values" and "standards" (I can relate well with an even higher net income) and that is exactly what makes the house significantly more expensive. I believe your budget for house + additional construction costs + everything around won’t be enough at 500k. Just a fancy big garage can cost 100k+. A pool + pool house can also go for 200k..300k. We are at 41k for the kitchen (list price 58k). Outdoor facilities vanish 100k just like that.

I would save up even more equity with your income (which can be done quickly). In the end we had about 500k equity + >100k reserve.

On an expensive plot in the best location, a very fancy property is also allowed

@TE: Don’t let yourself get annoyed.. I know this all too well here (keyword envy). We are currently all-in at >1 million (plot 330k). We did build quite large (~225sqm) with some bells and whistles.. but no luxury. And that brings me to my point: With your salary, you surely have certain "values" and "expectations" (I can relate well with an even higher net income) and that exactly makes the house much more expensive. I believe your budget for house + additional construction costs + everything around it is not enough for 500k. A fancy big garage alone can cost over 100k. A pool + pool house can also go for 200k..300k. Our kitchen cost us 41k (list price 58k). Landscaping is gone in no time with 100k.

I would save up even more equity with your income (it goes quickly). We ended up with about 500k equity + >100k reserve.

On an expensive plot in a prime location, there should also be a very classy property standing

Wow, not bad. No, well those are just different leagues (pool house, 60k kitchen), that’s not for me. I don’t need that either (but I explicitly wish you well with it... ).

What’s a bit forgotten in the risk discussion: I am very flexible. Sure, I could become unemployed or get a lower-paying job. Apart from the fact that in life you always expose yourself to some risks: if it happens that way, then I’m not dependent on the house. I don’t have a large family to support and therefore no problem moving back into a rented apartment or something like that in such a situation. Sure, it would be bad and annoying, especially if you got used to the nice house, but if there’s no other way, then that’s how it is. The world won’t end because of it. I don’t come from a "well-off" family background and therefore don’t have certain expectations "by default". I’m really quite relaxed about that. And to build three sizes smaller just out of fear of such a situation? I don’t get that.

In that respect, this thread here is actually taking away some of my "fear of big numbers", because it shows me: I can probably be a little less risk-averse than many here. And that actually gives me a good feeling about doing it that way. And also with 15 years fixed interest period.

What’s the point of moving into a rental apartment? You have to service the loan. You might as well sleep under a bridge, it won’t save you from personal bankruptcy if you lose your very well-paid job.

You’re planning a loan installment of 3,400 EUR. If you were to lose your job, your new job’s gross income has to be at least well into the six-figure range for you to continue servicing the loan with a very simple lifestyle.

By the way, how much of your income is actually 100% fixed and how much is a variable component?

And if you’re thinking about selling the house. First, it’s a house tailored specifically to you, which is rather small and simple for the location, and second, with the amount of the loan, you can expect a six-figure amount in prepayment penalties.

You just want confirmation and no serious suggestions.. I can agree with Steffen80 here. You should bring significantly more equity to a project of this size as a sole earner with a high-risk job.

I wouldn’t call it building small, quite the opposite. If you ever want to sell the house, then to other potential top earners, and they will surely expect a high standard. An average house on an extremely expensive plot - basically, depreciation is programmed at the time of construction. They should fit together.

By the way, how much of the income is 100% fixed and how much is a variable component?

Of the 7.5k, everything is 100% fixed. Variable components come on top of that.

Your other concerns are clear to me, especially regarding the property (depreciation, prepayment penalty in case of emergency). Except for the "high-risk job" part. My employer is solidly positioned, and my position is secure. Therefore, I don't see my job as more risky than others.
And yes, I want serious proposals here and am grateful for any.