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

Hello, Landu!

As a banking advisor, you should know that the greatest benefit from something comes when you realize your own fruit, that is: live/build yourself.
Of course, with the appropriate expertise, you can also set up an interest rate swap and buy/rent out Apartment A and rent/live in Apartment B. In my opinion, this only pays off if you already have rental properties anyway; otherwise, the administrative effort eats up the profit and the actual rental risk in no way corresponds to the achievable return.

The same applies to a plot of land that is supposed to lie unused for 3-5 years and from which no fruit can be drawn in the form of your own building, if the land cannot be used as a speculation object (building obligation/right of repurchase by the city, check this!). If you don’t build for 5 years, you pay rent for 5 years and the land does not participate in the value development process in parallel, if the land reverts to the city after 5 years.

For short- and medium-term investments, there are therefore better options, which does not exclude that you can buy a plot of land if it is the absolute jackpot in terms of location and price.

In your situation, I would therefore advise you to save a little more equity and initially consider a condominium. Building a house won’t run away from you; where you will be professionally in 5 or 10 years, you can hardly estimate. You can then bring a paid-off condo into the financing of the house construction as you like.

Best regards
Dirk Grafe

Smaller is always possible.

Hello,

thank you very much for your comment.

Although I work in the banking sector, I have nothing to do with finance. I am involved in IT security in that field.

Regarding my current situation: I live with my parents. This happened because my father is in need of care, so I and we (my family, mother and brother) take care of him. We have very little space, but we manage, so it is not a problem. This means I currently do not pay rent. I take care of food and clothing for 5 people; my parents pay rent, electricity, etc.

That is why I am currently considering maybe getting a [ETW] or a plot of land. With the [ETW] I would have the advantage of having something tangible so that, if personal circumstances change, I could also move in myself.

Your plan is actually quite good. And what Drik Grafe says is also true. For building a house, significantly less equity is needed than for buying existing properties. How about building a two-family house directly, in which you live in one apartment yourself and rent the other to your parents? This way, you can fully add the rental income to your monthly income and use the house yourself from the very beginning. How do you see it?

How about building a two-family house right away, where you live in one apartment yourself and rent the other to your parents? This way you can fully add the rental income to your monthly income and use the house yourself from the beginning.

Rental income still has to be taxed - so please do NOT add it FULLY.

Rental income still has to be taxed - so please do NOT add it in FULL.

For the household budget, the full cold rent can be stated.
You are absolutely right that Landu cannot spend the full rent again (only after deducting the maintenance reserve, etc.).