Terraced mid-terrace house in Baden-Württemberg needing renovation, financial feasibility

If we put everything into repayment for the next 10-15 years, compound interest just has 10-15 years less time to work its magic.
We want to manage the balancing act between owner-occupied residential property (=luxury) and retirement provision (somehow also a luxury if you don't want to work until 67).

The numbers are also reliable. We have been keeping a household book with GnuCash for many years.

Compound interest applies with repayment too, and that is guaranteed.

If everything goes as planned, we will be finished by age 47 or 42 (house).

The bank will have received almost 100k in interest anyway....
But from then on, we will have no 2k monthly payment. Plus max prepayments/year

(Expenses 45k/year)

If you don’t plan on disability insurance (my wife doesn’t, for example, even as a high earner), a term life insurance might be worthwhile.

We have:
Disability insurance for me
Liability insurance
Home contents insurance.

My private/company retirement provision is sufficient to act as term life insurance (wife).
A buffer of just over 100k with which I can invest.

That has to be enough.

So I take compound interest with me, both on the loan and when saving in ETFs.

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Retirement provision [LIST] [*]1250 € (we would like to continue paying this even after buying the house)

Why? A house is also retirement provision. You're worried that it might backfire on you (which is already strange given your income and equity), but you'd rather put 1.3k into a contract each month that you will at best get paid out in 30 years, instead of into a home that you'll live in for the next 30 years and which will also serve as retirement provision afterwards. I don't understand your logic (btw: I am a banker). We built with significantly less income and much less equity and I can still sleep peacefully....

Why? A house is also retirement provision. You worry that it will blow up in your face (which is already strange given your income and equity), but you'd rather put 1.3k every month into a contract that you will at best get paid out in 30 years, instead of into a home that you will live in for the next 30 years and which you also have as retirement provision afterwards.
I don't understand your logic therefore (btw: I am a bank clerk). We built with significantly less income and significantly less equity and I can still sleep calmly....

I am not paying 1.3k into a contract.

Apart from that:
A house primarily generates costs (and is on top of that oversized in old age).
Stocks pay dividends and can be very easily liquidated (oh yes, there are also capital gains).

Total costs 760 k€

A house primarily generates costs (and is on top of that oversized in old age).

Stocks pay dividends and can be liquidated very easily (oh yes, capital gains are also there).

Honestly? Why so complicated if you think like that?

We just want to manage the balancing act between owner-occupied residential property (=luxury) and retirement provision (somehow also luxury if you don’t want to work until 67).

Reads somehow like a challenge or something to tick off.
Doesn’t read as if you actually have any joy or need for a house, but rather focus on the portfolio.
Everyone is different after all. But I would actually save myself the balancing act and continue renting. You can keep making money on the portfolio anyway.

I forgot to address this. The renovation is actually our wish. We can do it (have done it before) and would also like to renovate our property according to our ideas. Apart from that, it's simply much cheaper. The workload alongside a 40-hour job and two children is the other matter. Although the manual work is a nice change from the office job.

even if you have done something like this before, without children, with a less stressful job and at a younger age, I wouldn't do something like this ... and for over 2 years. I would shorten it to 1 year with craftsmen.