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

Do you even receive the housing construction premium? As soon as you earn more than 51,000 euros per year as a couple, you no longer get any.

No, we don’t get it anymore. I had taken it out before we got married.

Why do you want to wait so long to start building?

Is your wife’s re-entry into her job secured? You want to build in RLP? Here, kindergartens are free from age 2 (except for meal contributions), so that’s not really a cost factor here. If yes, I would proceed or explore as follows:

You have a paid-off plot of land. That counts as your equity. Let’s set the remaining equity aside as a buffer. I would now look around to see what a house would cost in your region. Visit model house parks. Invite 2-3 providers to your home and have them design a floor plan. Go to local GUs as well. Your land price suggests that costs in your area may not be too inflated yet. Then see what financing need you have. Then I would calculate different scenarios. Excel is your friend. And calculate whether building up equity really compensates for rising construction costs, higher interest rates for part of the loan, and lost years in your own house with garden.

Good question... why do we want to wait. Because I was basically of the opinion to first save up significantly more equity. But your arguments definitely make sense and we have to think about it more carefully and, as you said, have it calculated. The plot is in RLP, so the elimination of kindergarten fees is correct. My wife’s re-entry is secured; in our area, physiotherapists are sought after in all practices, but she can also return to her current employer. We will follow your advice and now just look at different options, go to a model house and get advice, and then see how things go. What are “local GUs”? Many thanks for your great help and suggestions. Great stuff!

No, we won’t get any more. I had completed it before we got married.

Good question... why do we want to wait? Because I was actually of the opinion that we should first save up significantly more equity. But your arguments are definitely understandable and we need to think about it more carefully and, as you say, have it calculated. The plot is in RLP, so the loss of the kindergarten allowance is correct. My wife’s re-entry into work is secured; in our area, physiotherapists are sought in all practices, but she can also return to her current employer. We will follow your advice and now just look at different options, maybe visit a show house, get advice, and then see what to do next. What are "local GUs? Many thanks fu

GUs are general contractors who build houses. These are usually local construction companies, but there are also regional construction companies that act as GUs.

From my point of view, you cannot save as much as the costs increase per year. Therefore, an as early as possible start is probably "more advantageous".

Savings:

[*]€800 / daily allowance account [*]€300 / ETF savings plan

+ Balance 1323 / month Your savings performance is already very good. You are currently living almost rent-free anyway. So I do think that you can save against the rising construction costs and build up some equity. If the savings rate is really that high, it won’t all be eaten up by rising construction costs. But certainly a significant part. It would be important that your wife (at least part-time) returns to work. But if she now wants to stay at home for 2-3 years and then directly have number two, I see the desire to build at this point in time more critically. However, if she starts part-time again (50 - 60%) during the course of next year, I would push ahead with the building wish now. Then I also do not find another parental leave a bit later critical. You will bridge that time as well. I think that if the conditions fit, a home with a garden is especially most valuable in the first 10 - 15 years when the children are still small. Honestly, how many would really build (especially such a big one) if they didn’t have children? So I would treat myself to a nice city apartment with a roof terrace for grilling then.

Hm. Never catch a falling knife. Grabbing something that is supposed to be more expensive, gone, sold out tomorrow ends with bloody fins. What about the door? The second-hand house at 150 in the family? Trees never grow to the sky, not even construction price trees. Sleep on it. Discuss it with parents. Nothing rash. We civil servants are not the fastest, that's why we are civil servants. K.

I also don't believe that construction prices will continue to grow at the same pace as before. But it certainly won't get cheaper either. My noted 15% over maybe 8 years is actually just inflation, nothing more. I rather think it will get a bit more expensive than 15%, not as rapidly as in the last 5 years, but still more expensive.

The existing family house is of course really something to consider. The OP just has to weigh it up. Do you like the house? What needs to be done to it? How certain is it that you will get it and (this would be especially important to me) when?

And to be able to weigh up, you also have to deal more closely with the topic of new construction and the costs associated with it. Therefore my suggestion is first to find out what a desired new build would cost you.