Build a small dream house in the future

Hello

My wife and I (both 29) have been living in Germany for 5 years. Our dream is to build a house for ourselves. Since last year we have found new jobs and have approximately 5,800 euros net monthly. We hope that by next year it will already be 6,800 euros. So far we have saved about 75,000 euros. Conservatively, we can now save 3,000 euros monthly, as our rent is about 1,500 euros. We don’t need the house now but only when the children start school (for example, 2029). At the moment, of course, we are not sure exactly where we want to stay.

The house should be 120 m2, only ground floor, without a basement and with a small garden (a small garage will be added) on a plot of about 400 m2. We do not need more. Since I studied architecture, the documents for the building permit should be unproblematic. Also, construction supervision should not be a problem for such a small house. Probably not much can be saved here, but it is at least something. My estimate would be 150,000 euros for the land and 150,000 euros for the house.

Since we can still save a lot in the future, we thought of first buying a small apartment (in a larger city) and renting it out. In this way, we could earn something besides our salaries. Then in the future, when we want to build our house, we could sell the apartment. Of course, when buying and then selling an apartment you have to pay ancillary costs, notary etc. The other option would simply be to put the money in the bank, but the interest rates are, of course, quite low.

Would such a solution be reasonable? Thank you very much.

Do you already have children?
Good salary, good savings rate (I can hardly believe it, treat yourself to something once in a while )
I cannot judge land prices, you don't mention the region.
120 sqm for 150k is not going to happen. Calculate with 240k + additional construction costs + outdoor facilities + garage + kitchen + furniture and frills. Even if you take over the construction management yourself. 150k is not enough, even if you do everything alone and don't hire a single company.
But the costs (if the land price is correct) should be easily manageable with your salary and the small house.

Since we can still save a lot in the future, we first thought about buying a small apartment

Good idea! Saving is always a good idea.

and renting it out.

Is that really sensible? Renting out instead of using it yourself? Why?

In this way, we could earn something in addition to our salaries.

And pay the financing and taxes on the income.

If we want to build our house in the future, we could sell the apartment.

Keep in mind that at the beginning (when buying the apartment) you have heavy incidental purchase costs that need to be paid back.

If we want to build our house in the future, we could sell the apartment.

See my previous remarks. If you buy today and pay, for example, 12% incidental purchase costs, you might not be able to recoup those upon sale. Additional "problem": If you sell within 10 years and make a profit, you must pay tax on it. Conclusion: As a long-term investment, buying an apartment (for renting out) is fine. If the money is needed again soon, the idea is simply nonsense. Better to move into your own apartment and repay yourself. You will probably be much better off that way. P.S

150,000 euros for the house.

Is a tiny house enough for you? If you are an architect, you should know that you won’t get a new build for €150K. Let’s deduct incidental construction costs of €30K, then the garage with €15K, the outdoor facilities with €25K, and consider how you can still build a 120sqm house with the remaining capital of €80K. A 120sqm house with garage and garden costs at least twice your budget. In 5–8 years, you might even build three times your budget.

Do you already have children?
Good salary, good savings rate (I can hardly believe that, treat yourselves to something every now and then )

No, we don't have children yet, but we should next year.
We live frugally but well.

Is a tiny house enough for you? If you are an architect, you should know that you can't get a new build for €150k. Let's deduct ancillary construction costs of €30k, then the garage with €15k, the outdoor facilities with €25k, and consider how you can then build a 120 sqm house with the remaining capital of €80k.
A 120 sqm house with garage and garden costs at least twice your budget. Maybe in 5-8 years you will build for three times your budget.

I am not an architect, as I wrote I studied architecture and now do something else. But I am familiar with building permits in Germany and can certainly plan a small house.
I looked up the prices on the internet, but they are apparently underestimated (€1,300/m2).

Good that we now know that the idea of renting out won't work. So all that's left for us is saving and when we are ready, building.

I looked at the prices on the internet, but they are apparently underestimated (1,300 euros/m2).

Calculate from 2,000€ plus ancillary building costs, garage, garden, etc.

So far we have saved about 75,000 euros. Conservatively, we can now save 3,000 euros per month, as our rent is about 1,500 euros.

You are very frugal We have over 6,000 € net income, one child, and pay 550 € rent. We manage about 2,000-2,300 € in savings. Respect