Build a house, buy a house, or...?

Hello everyone,

I have been a silent reader for some time and have read many of the threads and questions created by other users here. However, my situation does not really fit any other "case," which is why I am now opening my own thread and am curious about your feedback. I will first try to fill out the pinned list as comprehensively as possible and then add further explanations.


General information about you:

[*]How old are you?
He: 32 years She: 29 years
[*]Are there children?
Yes, 8 months old
[*]Are more children planned?
Yes, another one
[*]What do you do professionally?
He: Teacher (A13, tenured for life)
She: Physiotherapist (employee)
[*]How many hours do you work?
He: Full-time
She: On parental leave

Income and asset situation:

[*]What income do you have (gross/net)
He: 3470 euros net
She: 1300 euros net (currently 800 euros parental allowance)
[*]How much child benefit do you receive?
190 euros
[*]How much equity do you have?
approx. 20,000 euros

Housing costs:

[*]Rent costs: 270 euros / month
[*]Electricity: 66 euros / month
[*]Oil heating: approx. 100 euros / month
[*]Telephone, internet, mobile phone: 120 euros / month

Mobility costs:

[*]Insurance
Car 1: 42 euros / month
Car 2: 46 euros / month
[*]Taxes: together approx. 20 euros / month
[*]Fuel
Car 1: 200 euros
Car 2: 30 euros

Insurance costs:

[*]Private health insurance
222 euros / month
[*]Occupational disability insurance with pension insurance
He: 125 euros / month
She: 76 euros / month
[*]Household insurance:
8.25 euros / month
[*]Legal protection insurance
Member of union: 8.30 euros / month

Living expenses:

[*]Groceries
approx. 400 euros / month
[*]Restaurant expenses
30 euros / month
[*]Personal care/drugstore
60 euros / month
[*]Club fees
4 euros / month
[*]Netflix / Audible
20 euros / month

Savings:

[*]800 euros / overnight money account
[*]300 euros / ETF savings plan

Income and expenditure totals:

[*]Total income 4270 / month (salary + parental allowance)
[*]Total expenses 2947 euros / month
[*]Balance 1323 / month
[*]of which sum rent and non-essential savings
1370 euros

Construction or purchase costs:

[*]Land costs
552 m² purchased in October for a total of 53,000 euros (including all costs, notary, court)
[*]Total costs
53,000 euros (fully paid, no loan)

So now I have to elaborate a bit on all these backgrounds and explain a few things. The situation is that my wife, my little daughter and I currently live in my parents' house. My parents built a new house a few years ago and I moved into the "old" house. Hence the very low rent costs. The house, like a neighboring house (in which my parents have two tenants), belongs to my parents, it is very large, an old half-timbered house and offers plenty of space, but has little garden and lies in a "hole" surrounded by other houses. What basically bothers us about the situation is that there is little space around the house and the sun disappears very quickly. We always painfully notice this when we spend time with our parents, whose houses each stand on the hills of the village and basically get sun and light all day long (I know... complaining at a high level ).
My wife and I are uncertain whether we can even afford building a new house. Moreover, in a few years, we might have the opportunity to get a nice house in a good location with a large plot from relatives. We would of course renovate / extend the house and adapt it to our needs. I estimate the purchase price at about 150,000 euros.
By chance, we now had the opportunity to buy a plot on a hill in our town. The plot borders directly on my parents' property. With 15,000 euros equity and financial support from my parents, we paid it off completely.
The question now is: does it make sense with our incomes to build a new house on the purchased plot in a few years, or does it make more sense to buy and renovate an old house in a few years, or should we forget about a house in the sun?
Our current plan is definitely to stay in our current house for a few more years and save money. Can I somehow cleverly prepare for a possible house purchase or new construction now, for example by saving / using any building savings contracts, funding programs, or whatever?!

We are very much looking forward to your feedback and tips

Surely there will be a construction included with A13 and ZweitEK. Secure the current low interest rate through a building savings contract. Somum 1.4% nominal is currently insurable. Choose it so that it is roughly ready for allocation at the start of construction. If the interest rate is, let's say, good in 6.5 years, you’ll see. Save a Riester pension via funds. You are allowed to invest the capital in the self-used house without having to repay the subsidies. If other doors open, house in relation to B., so what, both Riester and building savings can be used for that as well. Land can then be sold; it will certainly not be worth less than today. K.

Well, the plot is there, can you build as nicely as you want on it? If yes, then go to the local developer and ask what a house would cost you, check financing and then possibly do it.

I mean, the rent is unbeatable, but now you live there and are also ready to stay there for the next few years,

And it won't get cheaper ...

builds new!

the existing property market is sick.

we faced the same problem. 300k for houses from the 70s... then rather 100k more and something new.

Regarding Riester, I just went through it: capital withdrawal for the purpose of creating homeownership, and I found it a really tedious process. The money comes "eventually," months after application, it restricts you (the house must be used by yourself permanently), and before that, with the allowances, you really have to keep track to make sure everything is running correctly (although my children were considered in the contribution, the allowances were not applied for, and I noticed it too late) – and they are eaten up half by the "distribution costs." That makes the whole thing not so attractive anymore.

If you additionally have €1300 left per month, even though you are already saving €1100 – those are the very best conditions. Get started on the planning, because before everything is set, you will have saved quite a bit that way. Why wait? The bank is happy about the low-risk civil servant.

Everything fits perfectly!

These are great conditions:

- very low rent, -> saving equity
- land already secured! -> location question already clarified
- suitable income
- no pressure (e.g. rental apartment with the parents)

What could be clarified (matter of taste):
inheritance, gift in advance?
e.g.: the rest of your land