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

Don't think about a payment horizon. Banks don't care about that anyway. Banks want to make money -> more term = better

700m² plots of land can more or less be forgotten at the moment in the Munich metropolitan area. They are either all sold under the table or off the market within seconds. I see in our area (Mühldorf district) how extremely prices are rising. Since it became known that the A94 will probably actually be completed at the end of 2019, prices have shot up again. In Mühldorf, you already have to reckon with around €300/m² for a developed plot (if you get one). (Mühldorf has a train connection to Munich).

I bought 6km outside of Mühldorf in the countryside - totally quiet location (only one neighbor, otherwise little frequented walking paths or green spaces next to the plot). It costs around €100/m²! And once the highway is finished, I will be in Munich in less than 45 minutes. And for the almost €450,000 I save, I can often travel to Munich (if necessary even by taxi)!

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

Or sometimes offers from private individuals without brokers. I definitely wouldn’t write off Immoscout and Co. But of course, when something good does appear, you have to be quick. Plenty of brokers still want to push their way in then and there will also be other interested parties.

Michael

I also lived in Munich for a while and still know people there who have either just built or are still looking. The prices there simply make no fun at all, even with your really good incomes. From my limited experience as an observer, in markets with almost no supply, there are often step-like increases but no price drops. At some point, hardly anyone can pay the high asking prices, and then they stagnate for a while. When people then earn a bit more again or larger loans are possible due to low interest rates, the next price round continues.

A former colleague with a similar income to yours recently wanted to buy a large city apartment for 900k. I told him he was crazy to spend that much. He was outbid and is now looking for single-family homes around 1200k. However, in the southeast of Munich, which is probably even more expensive.

I am very glad to be away from the area and to have found something affordable here just before the currently ongoing really big increase.
Good luck
Michael

But I wanted to ask something else: 180 sqm with an upscale standard should be possible to build for 400 to max 450 k€, because of my 500 k€. Otherwise, it really is golden faucets. That means 500-600 k€ for the plot?!? For 700 sqm? That’s 800 €/sqm, where do you want to build? In the English Garden?

By no means, I wrote that I am assuming 400k for the plot. But we are also looking more towards the north up to Pfaffenhofen.

A quick glance at current appraisals in forced auctions reveals to me: building land with a good location and city center connection, for example Pullach: 1600 Euro/sqm, outside the ring, for example Puchheim or Germering: 700 - 1000 Euro/sqm

I can’t imagine that you can generate so much revenue with rental properties on the land there so that such a selling price would be justified. At most as a pure investment...

Of course, I often ask myself whether we should just continue renting "cheaply." Ultimately, however, living comfort or luxury is becoming increasingly important to us. I am not the type of person who wants to kick the bucket at 65 with a million euros in the bank. I’d rather live in the now and possibly pay more for my single-family home, but have no neighbors and an unobstructable view that I can enjoy every day (until I kick the bucket).

Hm well we are not from Munich, just lived here a long time, nothing holds us here. But we also can’t do anything with mountains or the fancy stuff. And we still want to build, not doable for us here. We are moving to East NRW next week and pay there for a semi-detached house with about 160 sqm and a small garden the same rent as here in Hadern, good subway location for 88 sqm... You just have to see what you can afford (obviously) but also want. What we want here is unaffordable and even if it was not, it wouldn’t be worth it for us to pay this Munich bonus. But if you look up to Pfaffenhofen, there should be something doable, just no longer with good connections...