Is buying property now sensible? Experiences?

Income has only existed like this for 2 years. Due to different circumstances (without impact on financing etc), my partner unfortunately is starting again with basically 0 TEUR equity

As I said, I would then all the more set the savings rate higher. With €2,500 rent that apparently doesn’t bother you currently, I don’t quite understand why the concerns about the loan installment are so big. You have to first want to pay such a high rent for two people.

I also think you should just do it now. With a calculated 6% capital service per month, you pay the bank 500€ per month per 100,000€ loan. With a (quite low) target rate of 2,500€, that is a 500k loan, plus your equity. So you actually have more money available. During the construction phase, you will still be able to save equity, which can also be used for subsequent things like the kitchen and outdoor facilities. Would you like to explain to us why you want to wait until 2025? What do you hope to gain from waiting? You continue to pay rent and construction costs will probably not decrease, at best stagnate. And in general: Why can't you save more monthly?

Hi. Thanks to you too for the feedback. The background is, (a) that I currently still have to be present a lot professionally in the city and (n) from my point of view the equity is still too low (we are working on it…). Hence the idea of splitting and the negotiation result with the bank for the plot. Hope (I know…) is that in two years maybe one of the parameters interest rates and construction costs will be "more builder-friendly."

You have an annual income of 114,000 euros.

Where is the money? Buy the plot of land and pay it off over 5 years. Then it is paid off.

Building obligation only means to start construction by 2026. You don’t need a loan for the planning and building permit. You pay for that as is.

Construction begins when you drive a spade into the ground. After the approved building permit, a notification of the start of construction is made. Then you can basically build for 20 years. So you can already plan the house, and once the land is paid off, you calmly look for a construction company. Then the entire financing amount is no longer that high.

You have an annual income of 114,000 euros.

Where is the money? Buy the land and pay it off over 5 years. Then it is paid off.

Building obligation only means to start building by 2026. You don’t need a loan for planning and the building application. You pay for that directly.

Construction starts when you stab a spade into the ground. After the approved building application, a notice of construction start is made. Then you can basically build for 20 years. So you can already plan the house and once the land is paid for, you calmly find a construction company. Then the total financing amount is no longer that high.

They were cautious with the contract for the land here: the shell must be standing.

Well, my income has only been like this for "just" two years. I already had the idea to put all equity into the land and then repay the rest in 3 years. My thought here was that I "secure" the 3.7% today. I start with a high repayment rate. Depending on the interest rate level in two years, I would then modify the financing of the land. So if interest rates rise: reduce repayment on the land and repay the house faster, and vice versa.

I warn you not to write here in the forum in two years: "I should have built two years ago because now with 6% interest and 4000€ per m2 I can’t afford it anymore." Who says it will be better in two years? At best, it will stagnate (the construction prices), but a rapid increase (wage-price spiral) can also follow if inflation persists. Now you could say that you have only had the job for a short time and it might not be secure. But if you were to lose it, your rental apartment would also be gone. Therefore, be braver: with that income, I wouldn’t hesitate any longer but start immediately. And if you want 150 m2 (which I assume), calculate all in at least 450,000 for the house. That’s why start now. It won’t get better…

Those are luxury problems. With that salary, you can easily do everything right away. In two/three years, you will have already sunk quite a lot of money into your rent again.