House construction in the suburbs of Munich? What should we invest in?

Hello everyone,

Currently, we are living with a rent of 1600 euros, but in the future we want to improve/expand and build in the north of Munich or the northern surrounding area. At the moment, the market seems to be quite empty. We would like an individual architect-designed house (~180 sqm living space, ~700 sqm plot) with a high standard in a desirable location. Preferably near the S-Bahn, but it can also be significantly more rural.

Actually, I thought we already belonged to the privileged families, but apparently I have quite misjudged things considering the prices:

He (30) = 4,600-4,900 euros net monthly
She (29) = 3,200-3,300 euros net monthly
Equity = 220,000 euros, scalable up to 300,000 euros
No loans
No children, 2 planned in the next 8 years, parental leave each 6 months
2 vehicles
Monthly savings rate = 2,500 euros
The rest is (so far) squandered on various long-distance trips, activities, food, wine, etc. We are willing to cut back again here.

Now my question to you, since I am still quite green behind the ears: How would you continue to plan with this financial situation and the wishes regarding the single-family home?
We are quite at a loss, interesting properties cost around 1,000k, plots 400k. But as I said, there is actually nothing left on the market. Do you have any tips for us? Will the whole thing ease up again on the market?

Similar to us. If the jobs are secure, 600k as a loan is certainly justifiable. Possibly even a bit more. Good income and good equity. Reason for 400k and 400k for a really nice house should certainly be doable. 800k - 600k loan = 200k equity. The rest as a reserve. We also keep almost 100k as a reserve. Loan with us 500k.

I consider it very unlikely that prices will fall again in the foreseeable future.

Regards, Steffen

I consider it very unlikely that prices will fall again in the foreseeable future.

Regards, Steffen

You overlooked the actual problem. There is practically no real market or supply. How a depleted market normalizes again with falling prices is hard to say. But there are areas in Germany where it is difficult to get property, whether used or a suitable plot, even with ideal conditions. Furthermore, one repeatedly observes (and this is certainly understandable) that when it comes to certain planned expenses, people become very selective, meaning if I invest 1 million euros, I want to feel comfortable and not be annoyed about something every day. An example would be a good transport connection (car, train). Of course, one can also search 100 km outside Munich and find something, but then one would be annoyed every day having to commute to Munich.

I really can't help much with that. Similar observations are made in the Cologne area as well. Just keep at it.

A Munich resident once gave the following tip:

"Above all, with realtors in areas where supply is scarce, you must not just get yourself noted once but actively call repeatedly and inquire. Those who only get in touch once end up in the pile, and new people keep coming on top, and only those who actively annoy get considered because the agents want to "get rid" of these people at some point so that the number doesn't keep growing. Those who are only in the database don't matter because they neither disturb nor constantly annoy the agent. By the way, that was a tip I got from an industry insider.

Unfortunately, for a working professional, this is almost impossible. How should one constantly call a few dozen agents in addition to looking on IS24 or similar?"

Unfortunately, this is almost impossible for someone who is employed. How is he supposed to constantly call a few dozen brokers in addition to what he looks at on IS24 or the like?"

If I have learned one thing in 2 years of searching, then: only the "leftovers" end up on IS24

Thank you for your assessment! Luckily, our jobs are permanent and secure. The leftover issue has also caught my attention and has been suggested to me by many colleagues. How is your experience, does it get cheaper outside of the internet? And why should a broker sell greatly without internet support? He has the least work with online ads, many interested parties who contact themselves, almost immediately... I will probably have to pursue multiple tracks... I find the situation strange that with my total amount, you can buy an entrepreneur’s villa with park grounds elsewhere, or earn a fortune with risk-affine financial transactions

I find it disturbing that with my total amount you can buy an entrepreneur's villa with a park estate elsewhere, or make a fortune with high-risk financial transactions

Location location location and again location.. for 1 million you can get an entire village including inhabitants in Mecklenburg