Construction project on hold - keep the property or sell it?

Wait and have some tea, as long as the property doesn't hurt you financially. Who knows what will happen in a year?! Things change. The property doesn't lose value. And I don't find it small for expensive areas where you're glad not to have to buy 700sqm either. Manageable size, manageable price, manageable risk :)

Okay, so there seems to be one thing everyone agrees on: keeping the property.

I didn’t expect it to be so clear-cut.

I’ve gone over everything again calmly in my mind, taking into account the things you mentioned, and one has to say that selling might actually be pretty "stupid."

The decisive factor should above all be how strong the dream of living in your 'own four walls' is.
Are you ready to sacrifice 2-3 years for it?

You can’t even imagine how strong the desire for my own four walls is. I can no longer tolerate the stomping/yelling/fighting, etc. from the neighbors, nor is the space sufficient for me. Especially since the little one arrived. Aside from that, not having a garage is also a huge problem for me. We have a massive marten problem in the area. Regularly those damn creatures gnaw on other things on the car, which is why I personally won’t buy an expensive car anymore.

I mean, the problem with the neighbors will never really be under control, we will have houses and thus neighbors around us, so the risk of potential conflicts will always exist, but when I close my door it is closed and I have my peace.

Just to give an example – and everyone needs to be aware of this themselves.
I don’t want to praise myself or justify my actions here.
We built an above-average large, structurally very complex, and in terms of return, i.e., cost/benefit technically – actually a bad house, with lots and lots and even more – non-German-speaking foreign helpers. (Thanks to Google Translator) Others would call this a labor of love.

- We saved about 200-250k net in 2 years (compared to turnkey architect-built from 1300 vs 2200-2400€/m2).
- But I also spent at least 4 hours every day on the construction site for 2 years, Saturdays until 4 pm.
- We are now the happiest people on this planet, and this project has brought my wife and me closer together than anything before in our marriage.

But if you don’t pull together, can’t persevere in hard times, and aren’t ultra-optimistic, such a project can also bring irreversible, serious risks.

Everyone must be aware of this fact.

In retrospect, there is only one thing to say: without ambition & unconditional commitment, we would still be in the same place as 5 years ago.
- Only now with children, animals, and no space in the city, trapped.

For me, building a house for myself and my family was the greatest thing. It is certainly an extreme example. There is always a middle ground.

You might laugh and this will sound a bit cheesy, but I was really happy for you/you all when I read that. You are very satisfied and that comes across, congratulations!

I think that’s exactly how it would be for us in our own four walls, too.

Well, I have an appointment at the bank next week, I’m curious what will come of it. I’ll keep you updated!

The property does not lose value.

I wouldn't necessarily bet on that. If interest rates continue to rise, and building materials also increase in price, then the standard land value is the only adjustment the market has. Maybe it will really swing to a buyer's market at some point.

Land will no longer increase. The desire for ownership still exists. In good locations, the land will certainly not lose value…

In good locations the land certainly will not lose value…

And that is also the critical point. The good locations of today are not necessarily the good locations in 20 years. Entire regions can go downhill due to structural change. Back then it was the Ruhr area, in the near future it might be one of the car regions.

As some of you already know from my rambling about funding requests... we are currently in the same situation as you. We waited almost six years for the announced new development area to finally become a reality. Unfortunately, the municipality delayed it by easily three years, which ultimately has been a real financial nightmare for us. But that's just how it is now. We managed to secure a plot with a lot of luck, and even without the development, which will start in a month, we already paid 300€/sqm. Another approximately 240€/sqm will be added for the development.
With the repeatedly mentioned increased costs and interest rates (I'm already dreading the final loan), the whole project now has a price of 1.2 million. We are currently busy cutting back on wishes. We will probably also forgo the KFW funding, as the 18K€ do not compensate.
But: We will definitely keep the plot. We have 3 kids (4, 5, and 7 years old) who are bursting out of our current living situation (1 kids' room and no offices). Therefore, we will also have to build. Because there is nothing to rent or buy in the area. The market is simply wiped out.
In your place, I would definitely keep the plot and certainly also build.
Best regards