Buy an existing single-family house with a large plot and renovate it

Edit: You’re not exactly struggling financially right now. It’s crazy that even you can’t really afford an unsanitary house from the 70s anymore. INSANE. It’s quite shocking – I’m also hearing more and more about failed financings among friends. No wonder.
With an 800k loan, over 30 years at 4% interest, that’s a total of 574,956 euros (!!!) in interest. At 1%, that’s only 126,321 euros in interest over 30 years. Difference: 448,000 euros. (!!!!) Now the house would just need to drop 448k in value, then it would be alright again. (I’m curious to see if that happens over the next few years. The value has to come back somehow, those properties are unsellable!)

It's crazy that even you can't really afford an unsanated house from the 70s anymore.

I'm not surprised. It's not just a 130 sqm house in the middle of nowhere. You have to break it down to see why. The plot is about the same size as my entire new construction project including land, kitchen, outdoor facilities, and ancillary costs. The actual house is even relatively affordable if you exclude the land, only about 200k for a huge house with a basement. But the size comes back to bite you during the renovation. And the large expensive plot also really eats up equity for the incidental purchase costs.

Doesn't surprise me now. It's not just a 130sqm house in the middle of nowhere. You have to break it down, then it becomes clear why. The plot is roughly the same size as my entire new construction project including land, kitchen, outdoor facilities, additional costs. The actual house is even relatively affordable if you exclude the land, only about 200k for a huge house with a basement. But the size definitely comes back to haunt you during renovation. And the large, expensive plot also really eats up equity for the incidental purchase costs.

You can't count the 1500m² at the full standard land value. And what is also already clear here – the standard land values here will not rise because nobody wants or can tie themselves to these properties at these interest rates anymore. The closing prices won't be higher than in 2021, so the standard values will hardly increase.

[*]How high is the standard land value? 350€/m² (tendency rising)
[*]New build, old building (year built), house type? Old building, 1970
[*]How big is the house? (living space / usable space) 250sqm + 80sqm basement + garage

Year built and age certainly don't suggest a small house of an average employee back then. The way too large house is actually more of a drawback because the margin for this amount of living space is really tight – currently an exciting question regarding energy consumption.. ;)
And the OP brings both capital and income, which are certainly both in the top percentile. But for this you probably need more like €10,000 net income and €500,000 equity. Crazy times – if no crazy person buys, the price has to strongly revert to around 2012 levels as already calculated here.. Then maybe someone buys, tears down, and divides the areas, if possible.

Thank you very much for your feedback. We had roughly expected such a reaction. Possibly, with a subsidy and the fact that we have many craftsmen in our (close) circle of acquaintances, the costs could be reduced somewhat. Overall, however, the project is unfortunately a bit too big for us, which is very unfortunate, as it is a wonderful, secluded plot at the end of a quiet street (therefore rather not divisible) with an interesting house (individual layout). We would need the 1% interest rates back :D

I agree, then we would also build...

You cannot count the 1500m² at the full standard land value. And what is already clear here - the standard land values here will not rise because no one wants or can tie themselves to these properties at these interest rates anymore.

if it is a sought-after residential location, then a developer buys the land, tears down the house, and builds an 8-10 family house with at least 600m² of living space. We still have a housing shortage, and it will worsen because fewer buildings are being constructed.