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

Somehow I can't picture or grasp this house at your prices down there (which is then about "only" 850,000 including calculated ancillary purchase costs, etc.) where townhouses already come at this price with not nearly such attractive numbers. Is the value really there, or is there a catch with the location? According to the description, it could be offered for this amount in our cheap northern Lower Saxony. And divorcing families’ houses are not thrown away either. If it’s a forced sale, it should already be marketed at the moment?! Therefore examine this house! Something is wrong there. Probably there’s a leasehold fee on top ;) The €1000 purchases may not be consistently applied, that’s true. But I would also probably raise car costs much more, as well as leisure expenses and childcare.

Crazy, the amounts involved in relation to income sometimes. I'm really glad to live in an area that is at least attractive in terms of landscape, where property prices are still (relatively) affordable. In the past, I believe I mentioned acquaintances who sold their family home in a good location in the Frankfurt area for over 1,000,000€. The household net income of the buyers was apparently about 7,500€ (or a bit more) and obviously brought them to their financial limit, so no renovation was possible. Even with our Minister of Health and his husband, one wonders how they were able to buy a property worth several million euros. Mr. Spahn earns about 20,000€ a month as a federal minister. Why does this come to mind? The higher the income, the higher the expectations, and there are still things that are simply too expensive. Then you just realize that not everyone can fulfill the dream of their desired home (which I personally find right and necessary). Not because I don’t wish it for those people (!), but because a property loses value as a (luxury) item. Similar to, for example, a luxury watch. If everyone had a Rolex, it wouldn’t be a luxury watch anymore :) Sure, - to get a bit closer to the topic again - you acquire a countervalue with a property and don’t spend the money on wine, women, and song, as long as the price for the property is justified. Therefore, in the worst case, especially in the "Speckgürtel" of Munich, resale should be quite uncomplicated. Overall, the price seems very reasonable for the year of construction and size of the property. We have had special cases here in the forum already elsewhere, where the OP could buy the "kartenspielhaus" of an obviously wealthy man, but apparently didn’t go through with it after all.

So you could do that, but personally I wouldn't. You earn relatively little for such a high loan amount and the prospect of salary increases is pretty capped now. When I think about the fact that many managers from large corporations live in this region and normally buy houses like that, I really get dizzy looking at your situation. But you have secure jobs, which is also important.

The house itself sounds pretty good for the price. Not as cheap as many people here think. 50km from Munich is, depending on the location, quite rural and has nothing, absolutely nothing to do with the [Speckgürtel] :).

The interest rate for 20 years is of course amazing.

I would actually base it purely on the standard land value, how stable house prices are in the area. Unfortunately, you didn't provide any information about that. As far as possible, you have to be sure that you are not buying too expensive in a bad area right now in the real estate bubble.

A house of the category (size/furnishing/double garage/basement) costs across all of Bavaria, regardless of how small the village is, always over 700,000 euros without ancillary purchase costs. There is nothing below that. Thus, the property would certainly be interesting.

Phew, 225 m² of living space in the Munich area is naturally a luxury that needs to be paid for. I would seriously think about whether this house really fits my future plans, even if some (commission-driven) advisor says I can manage it.
Purely from the numbers, I don't find it impossible. The jobs are also rock solid. So far so good. The question is how big the family is going to be and when the wife can permanently start working again. If there is only going to be one child, then it obviously goes faster – but the house might then still be too big for 4 people.
I would rather consider building to meet needs and maybe have to borrow 150/200k less.

Whenever people earn the same as me/us and then want to finance twice as much, I get a stomach ache. Of course, I am not the reference but we are "normal," no extreme hobbies, okay, riding a motorcycle but that's currently on hold because both children are too young to ride along, even though the motorcycle is there.

The question is what you can actually get in the area. If the situation is as described, you might simply have to take the huge house.

Regarding the amounts: yes, it is an incredible amount of money. However, you reduce the bank's risk by having a good share of equity. The worst that can happen is that you financially don't manage, and you lose the incidental purchase costs when selling. Plus maybe a prepayment penalty. That is the risk. I wouldn't necessarily call the rest risky. Yes, the numbers are also astronomical for me. But let's look at it realistically: for the maybe soon-to-be 4-person family, about ~3000€ after deducting the monthly installment is available. I think that can work. In addition, there is the really good interest rate AND inflation. Here, the remaining debt of 350k corresponds to today's 260k. That's a whole different story.

Conclusion: For me personally, it would be too much. Mathematically and realistically considered, it should work.