Land available but only a condominium?

Hello everyone.

I am married and have a son (1 year old).
My wife and I are 30 years old.
We come from the area south of Baden-Württemberg - Freiburg region.
Both with above-average salaries.
However, my wife is currently on parental leave.

We finally got a plot of land 3 months ago - through a private sale at a reasonable price.
[300m2 for approx. 125,000 Euro including incidental costs].

Now we have requested several offers from prefab house providers, both solid construction, timber frame, etc.
After calculating everything, we come to about €600,000 for the complete construction project - without the land, including incidental costs, exterior facilities, kitchen, etc., so really turnkey, including a buffer.

Now comes the problem.
With the current interest rate, despite the fully paid-off land [equity], we cannot finance it.
The monthly burden is too high (about 2300-2500 including the L-Bank loan, and that is currently at no idea at the Landesbank anyway).

My consideration is to buy a condominium initially.
(Security: land, fully paid (125,000€) available.
Our apartment is too small in the long run.
We would also get a much easier financing for an apartment because the loan amount is significantly lower than for building a house.)

We will definitely inherit something in the next few years (the older generation unfortunately does not give anything in advance now when it would be needed).

My plan would be to buy a condominium, live in it myself, and pay it off monthly.
With the inheritance, pay off the apartment completely and then build the house, thus security in paid-off apartment and monthly rental income to use for repaying the house.

What do you think? Or do you have other ideas?

Best regards
Peter

Hello everyone. I am married and have a son (1 year old). My wife and I are 30 years old. We come from the area south of Baden-Württemberg - Freiburg region. Both have above-average salaries. My wife is currently on parental leave. We finally got a plot of land 3 months ago - through private sale at an acceptable price. [300m2 for approx. 125,000 Euro including additional costs]. Now we have obtained several offers from prefabricated house providers, both solid construction, timber frame, etc. When we calculate everything, we come to about 600,000€ for the entire construction project - excluding the plot, including additional costs, outdoor facilities, kitchen, etc., so really finished, with buffer included. Now comes the problem. With the current interest rate, despite the fully paid plot [equity], we cannot finance it. The monthly burden is too high (approx. 2300-2500 including the L-Bank loan, and that is currently in limbo at the Landesbank anyway). My consideration is to buy a condominium for now. (Security: plot, fully paid (125,000€) available. Our apartment is permanently too small. We would also get financing for an apartment much more easily, since the loan amount is significantly lower than for house construction. We will definitely inherit something in the coming years (the older generation, unfortunately, does not give anything in advance now when it would be needed). My plan would be to buy a condominium, live in it myself, and pay monthly. Upon inheritance, pay off the apartment completely and then build the house, thus security: paid apartment and monthly rental income to use for the repayment of the house. What do you think? Or do you have other ideas? Regards Peter

What do you want with a 300m2 plot? For a decent single-family house it is too small. If you buy an apartment now, the plot is dead capital that only causes costs like property tax. If the house construction is not financed, sell the plot (try to break even) and put the money into your condominium.

What do you want with a 300m2 plot? For a reasonable single-family house, it is too small. If you buy an apartment now, the land is dead capital that only causes costs like property tax. If the house construction is not financed, sell the land (try to get out without losses) and put the money into your condominium

the plot is more than enough. we can build directly adjacent to the neighboring building, so no setback. The house is planned on paper with an architect and it works.

1. the bigger, the more work. 2. no idea what land prices are like for you but for 450m2 or more you pay 300,000 euros upwards here.

Please provide some more detailed numbers about your planned house and your situation. What are your above-average incomes? What do the expenses look like? How do the 600k loans come about / what calculation is this based on?

Do you have concrete offers for condominiums? Freiburg is not exactly the cheapest area. Even with a condominium, including additional purchase costs, you're quickly at half a million and not really cheaper. I think with this option you combine the disadvantages: you have invested money in a plot of land and get nothing out of it except an annual property tax bill.

Maybe you could explain the construction costs in more detail. What size are you planning, with/without a basement, garage, planned own contributions or their absence, etc. Times are tough, but 600k seems a bit much to me. It should actually be possible to be in the range of 500k and thus much closer to the condominium.

Do you have concrete offers for condominiums? Freiburg is not exactly the cheapest area. You quickly end up with half a million including additional purchase costs for a condominium, and it's not really cheaper. I think with this option you combine the disadvantages: you have invested money in a plot of land and get nothing from it except an annual bill for property tax.

Maybe you would like to explain the construction costs in more detail. What size are you planning, with/without basement, garage, planned own contributions or lack thereof, etc. These times are difficult, but 600k seems a bit much to me now. It should actually be possible to land in the range of 500k here and thus much closer to the condominium

Solid 55 Ytong 9.84m length - 9.50m width, basement, ground floor, upper floor, garage with roofing attached to the house.
Total basement area approx. 60m2
Ground floor approx. 60m2
Upper floor 60m2

House price 455,000
Garage with roofing 28,000
Estimated additional construction costs 80,000
= 563,000 without outdoor facilities, kitchen, lighting

Own contributions not yet deducted, turnkey price.

We are doing own contributions, we would have to for the L-Bank as well. But I prefer to calculate with the prices I have on paper.

Comparison offer for timber frame prefab house approx. 30,000€ cheaper compared to the Solid 55

Leaving out the basement is not an option - because the plot is 300m2 and we need storage space -