Single-family house financing €950,000; loan amount €750,000, equity €200,000

But I am someone whom the forum here would definitely have advised against, single parent, little equity. Ratio of loan amount to household income, however, under 100. I did it anyway and I think it was the right decision.

You are young, have very secure jobs, and the property is likely to be very stable in value. Start with moderate repayment, that can be increased later. I would try to keep the rate as low as possible now. Later increase the repayment or use special repayments.

Go over the household budget again and if it works out... Go for it...

A single-family house with 700sqm of land for this price really sounds like a bargain in your area. You don't get so many opportunities like that there. Or is there a catch?

I would also feel uneasy about that amount. But we are both civil servants and have naturally thought about/calculated a lot regarding step increases/salary raises. Like you, I also think that in 20 years we will have so much more salary that the follow-up financing shouldn't really be a problem. The first years with children will possibly be tough though. So I would rather take a somewhat "lower" rate and then make special repayments.

Overall, the amount is crazy. But if you both stay healthy and can and want to work that much, it's probably doable. The only thing I thought: We also have a few high school teachers in the area, but once the child starts primary school, they tend to work less rather than more. Childcare is not well possible in every community. Also, I don’t understand the 2 days per week part. All high school teachers we know with a half-time position have to show up 4 days a week. With a lot of luck and fewer hours, maybe 3 days. But the other mornings are needed for preparation, grading... What I mean is, maybe you should plan an additional 350€ for the daycare? With 2 children, it probably won't get easier.

I am actually someone whom the forum here would definitely have advised against, single parent, little equity. But the ratio of loan amount to household income is under 100. I did it anyway and I think it was the right decision. You are young, have very secure jobs and the property should retain its value well. Start with moderate repayment, that can be increased later. I would try to keep the rate as low as possible now. Later increase the repayment or work with special repayments. Go through your household budget again and if it works out... Go for it...

Yeah, it was exactly the same for me :D In the end, you have to pick out the good and important info that helps you. You have the safest jobs in the world, a decent income, good equity saved up, that’s fine. You just have to know that you’ll have to pay more for your house in the first few years than you can really "afford". If you can do that, it will certainly work. As I already mentioned. Low rate at the beginning and as soon as income rises again—pay in properly!

If you absolutely want to pursue the project, I would advise you to perhaps include free repayment rate changes and initially repay less in the first years, then pay off properly as soon as more household net income is generated. However, personally, I wouldn’t feel comfortable with that somehow.

The debt is backed by a corresponding value. And that will rather increase around the suburbs of Munich.

The debts are offset by a corresponding value. And that value is more likely to increase around Munich's commuter belt.

As I said, you can do it, you just have to know what you’re getting into.

However, I wouldn’t assume too strong a value increase – rather set it lower! Construction costs or house prices are currently at their peak, really at the top level. In my opinion, the comparable value will be significantly lower in 20-30 years – but I would tend to disregard that if you really plan not to see the house just as an investment.

if you really plan not only to see the house as an investment.

I was rather concerned about what happens if the financing doesn't work out after all, or if you have to restrict yourself so much in daily life (the saving potential is mainly in the nice things, vacations, leisure, dining out, maybe clothes and tech gadgets - many other expenses are unavoidable) that it no longer seems bearable. Can you get out of the project more or less solidly? At least do you leave without debt?