Commitment to the property and what comes next

Hello everyone,

I am new here. My wife and I have been looking for a suitable plot of land for a while now. We have now found a 605 sqm one that we like. After consulting with the responsible municipality, we had to "apply" for the plot. Today we received an email from the mayor that we have been awarded the contract. So far, we have neither a planned house nor a financing commitment for both. We have a first appointment on Friday at the [Fertighauswelt] in Erlangen. I am now wondering how we should proceed best. Partially finance the plot and the house construction or finance everything together.

Best regards, Marcus

What did you want the property for? - normally one has a need (e.g. planning offspring and the couple's apartment would then be too small), so that the idea of a house already gains momentum. 605 sqm is above average by today's standards and correspondingly unusual that there are still no concrete ideas - for a "roof over one's head" for a normal family, half would be enough. The description sounds like a newly launched building area, where there are usually development plans (also with restrictions on the house shape or the exact location). In my opinion, you should ideally open two threads here: one about the house, with the completed questionnaire and representations of the property in the first post, and a second regarding the financing question. Ein house, but two very different communities within the forum.

So I would maybe look with different banks or credit brokers to see what you might be able to finance. The fact is that if you first partially finance the plot, this is not really a problem because it will be counted as equity. But the bank that finances the plot will then be first ranked in the land register, and this greatly limits the possibilities for financing the house.

So if you want to start building soon, it’s better to finance together. For further "consultation" you could open a thread in the appropriate subforum, where you present your financial situation and wishes, and also how things look regarding the plot price and current equity.

An important question will of course be how quickly you need to buy now? And when the start of construction would realistically be, because that also plays a role. I assume that the municipality will want to complete the purchase soon, but you will still need some time before construction begins. Because you haven’t really started planning yet!

How are the finances? What do you earn, what do you imagine?

We have our first appointment on Friday at the prefabricated house world in Erlangen.

We once had two appointments in a model home park (Wuppertal). The whole day was a complete waste of time for us. In our experience, the MH park is solely about quick deals. You don’t get truly detailed and well-founded advice there.

However, you can get a good orientation in the MH park... What do you like, what don’t you like. Gather ideas and maybe deepen them further at home via the internet. Pick floor plans that you like and try customizing them yourself...

I would recommend talking to small regional companies... carpentries, planning offices, etc. They take the time you especially need at the beginning of such conversations!

For the planning phase, you should reckon with at least a year... During this time, the topic "house building" will dominate your free time.

In parallel, you should roughly set a budget... What can we afford and what do we want to afford are usually two different things.

I can confirm that for most providers based in W, but fortunately, there are also exceptions. It is definitely better to stroll through the park just to gather ideas and then make appointments for concrete consultation talks afterwards. Then the urge to close the deal does not seem to be quite as strong.