Young family wants to buy a house - How to proceed?

Good day everyone,

That my wife (23) and I (24) wanted to buy a home as quickly as possible had been on our minds for a long time. Now we have thought about buying a house together with my sister (26). That means we (my wife, my daughter (10 months) and I) will have the ground floor and my sister then an apartment or similar in the house.

Now the only question for us is, how do we best start with the planning? What are our options? My sister and I work full-time and my wife works part-time. Who can give us the best advice? Should we go to a bank or a specialized financial advisor? Is there still support for young families?

I would really be grateful for tips!
Regards, Stefan.
P.s. The house is to be bought in Stuttgart, if that makes a difference.

Phew in Stuttgart. That’s going to be expensive. So yes, it makes a huge difference.

You should first become aware of your finances. How much net income do you have each month, how high are your ongoing costs (car loans, BAföG?, more children planned.....)
Then you have to be clear about the ownership: Will the sister be a co-owner? Or just a tenant? How long does the sister want to rent? How sure is it that she won’t want her own apartment in 2 years?

And finally, get an idea about the costs of real estate in Stuttgart. I know the rent index there very well, and I know what a hell it is. Here in KA it's almost just as bad. I estimate the land prices in Stuttgart at about 300-600 depending on location per square meter. That means a property will certainly already cost €150,000 just because of the land. For a house that doesn’t need another €100,000 renovation, you definitely have to count another 150,000 to 200,000. Also be sure to calculate renovation costs... heating, insulation, possibly new water pipes and and and

There are still grants, but they don’t really bring much anymore... Home ownership allowance of 20,000 etc no longer exists. Most grants come with conditions, like energy efficiency.

Asooo and of course it is very advantageous to bring at least 1/3 of the costs as equity. Otherwise, the financing will be expensive.