Savings beginner with questions about the plausibility of the "rough" plan

I believe on the one hand that Hamburg is already rather expensive - at least more expensive than Nordfriesland. Furthermore, I believe that many people simply spend a higher percentage of their net income on installments and repayment (even if that is not always wise), and ultimately I think that others respond to supposedly cheap offers and accept lower quality workmanship or provide their own labor / add certain parts later (loft expansion, outdoor facilities...).

Are you sure about that? I was under the impression that the bank does fully take into account media, exterior facilities, as well as structural engineering, building application, etc.

That probably varies from bank to bank, but if I may quote the internet: As a rule, the loan-to-value is 20-30 percent below the current market value. In this way, the credit institutions create a safety margin to minimize risk when granting the loan. This means that the loan-to-value of the house or apartment only amounts to around 80 percent of the actual construction costs or the purchase price. Banks offer top conditions up to 60% loan-to-value and good conditions up to 80%. This means for me that the bank does not see the value of the house for determining the interest rate of the financing at 470k, but significantly below that. Maybe you can think of it this way: if I replace or add parts to my car (value according to Schwacke 15,000€), e.g. fat dual tailpipe exhaust system, loud Hi-Fi system, parking heater, and the costs of these parts including installation amount to 5,000€, my car is not worth 20,000€ afterward (except in my imagination). A friend bought a brand new house two years ago (the previous owners hadn’t even moved in yet) from a divorcing couple and paid 50k less (about 17%) than the construction costs. That was not a friendly deal but market reality (supply vs. demand), to which banks are also exposed in the worst case. Accordingly, banks calculate cautiously. It annoys me as a homeowner too, but better that than bad real estate loans and a global economic crisis.

I really wonder how some couples buy a house without equity and with a salary lower than mine... Man, oh man...

I asked myself that question too and the answers are diverse but hardly satisfying: 1. They inherited 2. They saved for a very, very long time 3. They earn an insane amount 4. They are willing to live extremely frugally for decades 5. They go into debt beyond reasonable limits 6. They build very modestly (see also 4.) I find it hard to recognize myself in these six points.

I have asked myself the question as well, and the answers are varied but not very satisfying:
1. You inherited
2. You saved for a very, very long time
3. You earn an insane amount
4. You are willing to live extremely frugally for decades
5. You go into debt beyond a reasonable measure
6. You build very modestly (see also 4.)

I find it difficult to recognize myself in these 6 points.

still missing:

7. won the lottery
8. robbed a bank

For me, this means that the bank does not see the value of the house at 470k for determining the interest rate of the financing, but significantly below that.

Yes, that is correct, but the bank also starts at "470k" (that is, the construction costs, excluding kitchen, notary/real estate agent/property transfer tax, ...). Since construction and purchase prices have risen quickly in recent years, the banks' valuations lag behind (which may or may not be justified). This makes it sometimes difficult to obtain financing.

I would like to ask a question: Is it even worthwhile at the moment to save up equity instead of taking advantage of the low interest rates?

I would like to ask a question, is it even worth saving equity at the moment instead of using the low interest rates?

If you have no equity, I consider it absolutely necessary. If equity (20-30%) is already available, saving is indeed hardly worth it.

Regards, Steffen