Buying land now and building a house in 1-3 years - financing tips

Waiting is indeed difficult - plan a correspondingly flexible house with space for one child and at least one solution in case there might be two. The solution does not have to be implemented yet. Building smaller & cheaper is currently very much in trend out of necessity, meaning manufacturers are already offering smaller houses. Take a look at the [KfW] options; it’s complicated, but can lower your average interest rate. As far as interest rates go, you can see that they continue sideways with a slight upward tendency - it might be different again in a year, but considering the persistent inflation, I don’t see much room to go down quickly. Without a crystal ball, it’s difficult. What you have, you have - this applies especially to plots of land - if interest rates fall, demand immediately jumps back up. And the options dwindle.

Is there no smaller plot of land that you can buy?

We are looking in the Berlin metropolitan area and have come to the impression that the size of the plot is only conditionally decisive for the purchase price. Rather, it is the question of how many houses and semi-detached houses can be built on it.
The current one is quite suitable in terms of location to the parents, work, and nature.

Division of the plot/house financing

Since the plot is being sold from an insolvency, we have to notarize in August.
We won’t be able to avoid a division in terms of timing.
By then, we certainly won’t manage to seriously think about and plan a house.

Since the property is being sold as part of an insolvency, we have to notarize in August. There is simply no way to avoid a split in terms of timing. Until then, we certainly won’t manage to seriously think about and plan a house.

Certainly not with the specific house, but rather with a financing dummy to be able to tackle the overall project without artificial delay. Three years from the first architect meeting to the commissioning of the heat pump do not require any additional delay; that will "work" anyway ;-)

Since the property is being sold from an insolvency, we have to notarize in August. We really can't avoid a split in terms of time. Until then, we definitely won't manage to seriously think about and plan a house.

Then just look for a variable financing if you want to gain some time – fixed for 2-5 years probably won't be cheaper. This way you can still relatively flexibly look for the complete financing and the type of construction project later.

Then just look for a variable financing if you want to gain some time - fixed for 2-5 years probably won't be cheaper. That way you can later still look relatively flexibly for the full financing & the type of construction project.

Yep. Variable (i.e. with a 3-month fixed interest rate based on Euribor) is around 5.5% for us, fixed interest for 2 years a bit lower. Short-term financing is currently significantly more expensive than, for example, a 10-year fixed interest rate. Then - if construction is actually to start later - you can also go directly variable. Otherwise, I would actually tackle the construction project directly. It won’t be cheaper/better/easier even in 2-3 years (that’s my gut feeling).

Variable must be significantly cheaper.

With us Euribor3m+50bp, i.e. currently 4.15÷