Saving is a tricky thing. I see it the same way as my financial advisor: If you start saving today, with the low interest rates, the saved amount will PROBABLY be eaten up by higher interest rates and higher construction costs. When I tell relatives today how much our house costs, they almost drop dead. €400,000 with everything included. For that amount, my aunt could have built a mega villa with a basement about 15 years ago for around 800,000 DM :) Well, purchasing power was lower, etc., and she didn’t earn what I earn today. But one thing is certain: building has become way more expensive.
Anyone who deals with the topic of building also deals with retirement planning. Owning a house often isn’t enough. What good is it to have painstakingly paid off a house by retirement age, only to have to sell it because you get no pension?
You also need an architect for a prefabricated house, but usually one is already provided by the supplier side. The costs at the city office are your smallest problem. You will have to submit a building application, which costs somewhere between €200 and €2000, and you need the various connections like electricity, gas, water. You can usually check the prices for these on the network operator’s websites. However, beware of flat rates: if your house is too far from the street, it will become unpleasantly expensive — usually four figures.
It can certainly be cheaper to live in a rental apartment, especially if capital is not very liquid. Depending on the region, you might pay less than €600 including utilities for a 3-room apartment. You can never build for that money. Better to put the money into retirement provision. No matter what you do, a house will certainly cost you at least €1000 and maybe even €1400 per month. What many forget is that a house also causes costs beyond just financing. You can count on about €300 per month for insurance, heating, water, taxes, etc. And at some point, the roof breaks, or a new heating system has to be bought, the facade painted, or the municipality decides to redo the street. You will always be asked to pay.