Buy property now, and build in 3 to 5 years?

Hello everyone,

I registered here hoping to finally get some tips for my own home. Unfortunately, my personal environment cannot help, as none of them own a home. If I write nonsense, I apologize.

I am currently looking for a home. However, my equity is not yet enough to afford a single-family house. I am considering whether I should soon buy a plot of land and then build a single-family house on it in about 3 to 5 years.

My personal situation is as follows

Monthly fixed costs:
About €1000.

Monthly income:
About €3200, of which €2600 is salary and a little over €600 travel expenses every month. The travel expenses are fixed every month because I am always at the client’s.

Liabilities:
I currently still have my car. I owe about €8500 on it. However, I have already saved €6000 and plan to pay off the car in 4 weeks with the next salary.

Equity: €20,000 available.

I can save about €2000 every month. No new purchases are planned.

Why do I want a plot and want to build later? I want to benefit from the currently low interest rates. And my monthly savings would enable me to pay off the plot relatively quickly. Currently, I have one in sight with 350 m² for €119,000. What other costs would come up there?

[*]Notary
[*]Land register entry

Anything else? How do you find the idea? I would really be grateful for tips.

Best regards

Make sure there is no building obligation on your property. Check what requirements a development has, etc. Is the client always the same? You don’t want to have to go to Munich in two years and then find the long journey a burden or something like that. The same goes for a career change... You don’t stay a consultant forever and maybe there will be a great position in Hamburg, etc. etc. You will be immobile after all. On the other hand, you can also get rid of property in a good location again...

Great salary, but why have you saved so little? Can you restrict yourself there?

If the property has no building obligation, the price is reasonable and the location is okay for you, then that would of course also be a kind of "forced savings".

Thank you for your suggestions.

, No, the customer is not always the same. I work in the banking sector (Ffm). I will then look for something permanent in the banking sector if I no longer want to work as a consultant. My current situation is already quite good.

What do you mean by restricting? I have saved little because I only finished my studies last February. I saved the money during my studies and now that I am working. I still had a total of €16,000 outstanding on the car, of which I have already paid off €8,000 and about €8,500 remain, of which I have also already saved €6,000. The €20,000 is set aside and will not be touched.

Is that a good plan? Or do you think I should save for about 5 years first and then build directly with land, although by then the interest rates will probably be up again.

Is something like that common? How else can I look for land? At the moment I am only scouring the usual platforms. Anyone got any tips?

It also makes sense to be able to buy the plot of land right away, with the above-mentioned things to consider, or you finance both at the same time (plot + house). Financing the plot first and later financing the house in addition is, in my opinion, nonsense. Especially pay off the car loan if possible so that you can save better.

Regards

I would pay off the land first before building.

The car loan will be gone in 4 weeks.

How much could I finance with my current situation?

€20,000 equity and €2,622 net + €184 child benefit (for my son). I am married and my wife takes care of the child at home, so no income.

According to Interhyp, €250,000 + incidental costs are possible, nothing more.