Slowly but doubt about financing

Building smaller, fine and good, but you don't save much that way. My sister recently built in Bavaria, small and compact. For her, it was also >300K construction costs excluding land.

Ever considered the option of a granny flat? Sure, building becomes a bit more expensive, but not as much proportionally. Then 500 euros cold rent per month, that brings some breathing room with the financing.

For me, that would also be too high a risk at that income. I would either save more or reconsider my own expectations.

In the time during which one has saved more, prices have increased many times over, and on top of that, one does not know where interest rates will stand. In the last 10 years, at our company, at least 20 people have built houses, as far as I know. For the first ones, the interest rates of course were significantly higher, around 4-5%. They always groan about the "high" interest rates. They rarely see that their house only cost under €300k. From that point on, interest rates have continued to fall, but prices have increased by at least the same amount!!! And now at the first follow-up financing, they are naturally the ones laughing. People who could have afforded to build 3-5 years ago and therefore already bought a plot back then are now considering whether to sell the plot again because a new build is no longer feasible for them, despite lower interest rates. What I want to say is, equity is important, but starting to save now and building in 5 years hardly makes sense to me. Unless significant salary increases are expected, one will not be able to afford it in 5 years either. Construction prices will hardly decrease, nor will interest rates. So I would rather stretch the financing over about 5 years and instead of paying rent, already pay off part of my house. It is important to consider what I absolutely need or where I can save, for example, on house size, outdoor facilities, basement or attic development, garage, equipment, furnishing, own work...