Land purchase and house construction in the current situation - experiences

That sounds very much like sour grapes from Fene1907. Building a house is always a risk if you’re not swimming in money. If your situation is currently solid, the bank has no concerns, and there is no concrete reason to worry about the employer, then I would build. Maybe not the maximum dream house version, but something realistic that can also be expanded and improved. Our building planning for an extension is currently on hold because my job is not 100% secure and we first want to see how the company develops, but mainly because I will hardly find a similarly well-paid position in my field here in the region. But I wouldn’t come up with the idea of painting the dream of a house so black for others.

Hey, that wasn’t meant as scaremongering, but as an honest assessment. It’s simply the case that construction costs and interest rates are currently extremely high and many builders are struggling financially. The risk is high that in the end you either have an unfinished house or none at all if the developer goes bankrupt. It may be doable for some, but the days when you could afford a detached single-family house on an average income are simply not like they used to be. And regarding sour grapes – that was definitely not meant. I just think it’s important to look at the current economic developments before making such a decision.

Thank you very much in advance for the initial feedback.

Well, I think you are making it a bit too easy for yourself here. Building or buying a house is absolutely no longer standard nowadays – it is a luxury that one really has to be able to afford. "Nothing ventured, nothing gained" may be true in some areas, but when it comes to a loan of hundreds of thousands of euros, the fun stops. This is not about a spontaneous decision, but about an obligation that will bind you and your family for decades.

Especially the last sentence: But that is nothing new, it has always been that way when it comes to building a house. I basically understand your rather cautious attitude. Earlier you write, "that one must also be able to handle the installment with normal jobs." What do you consider "normal jobs"? And if one always has to factor in that both partners lose their jobs at the same time and become incurably ill, then no one would build anymore. Therefore, I also find that this assessment only reflects one side of the coin. I do not want to explicitly say that I would not understand your pessimistic attitude to some extent. On the contrary, I myself have a "healthy" skepticism, or let’s call it respect.

IGM can be anything. For example, you both could work in a booming biotech company or you could both be research engineers for new combustion engines. Both have very different future prospects. I would look at my skillset and at how many alternatives there are in my area within an acceptable commuting distance.

For this reason, I would appreciate an exchange here. Do other builders see it similarly in the current times? How do people with decades of experience assess the situation?

Life is always a risk. Renting is too – lack of apartments = rising rents, in my opinion strongly rising additional costs in the future, especially due to the CO2 levy, etc.
Divorce, illness, unemployment, etc.

Do you commit suicide because of that? No, you weigh up and try to minimize risks.
Statistically, you shouldn't have married at all – divorce happens anyway.

So minimize the risks and off you go.

Of course, these are new things and you should think them through carefully. Is it a nice property? Then definitely buy it and see what happens next. Feelings and reason rarely react at the same time, and if things keep getting worse, then at least you have a nice property as a secure investment that can also be resold. Now, we don't know your numbers, but I think that currently or for quite some time, a lot is driven by fear, and despite the legitimacy of this feeling, fear has never been a good advisor for life decisions, otherwise I would never have built.

I just think it’s important to take a look at the current economic developments before making such a decision.

A critical view has always been important, that’s nothing new.

but the times when you could afford a detached single-family house with an average income are just not like they used to be.

Read that so often, but it still doesn’t gain any more truth from it. This partially existing, dreamy view of a generation on the past years filled with honey and hammocks corresponds almost zero to the reality back then. Building has always involved risk, physically very strenuous (much more so in the past than today), stressful for family/marital life but ultimately valuable for quality of life, growing together, and ultimately creating value for old age. You might not like the first part, then you should leave it. With my two sons, it’s once this way and once the other, and I understand both. Have your financing plan checked by a third, uninvolved person to get some final security. If nothing comes up there, use your energy for the new house so that it becomes beautiful and you feel comfortable there for a long time.
A bit of worry will probably remain, just like you always worry before a check-up or maybe a flight. If you are the type who wants to be a homeowner and not a tenant (both have their justification) and have consulted one more independent check (maybe even here), then build the house. If everything implodes as it is repeatedly portrayed on screens, your job will be the smallest problem. I actually think that the information storm, which you consciously have to avoid, contributes at most to our often foggy assessment of our situation.

IGM can be anything. For example, you both could work in a booming biotech company or you could both be research engineers for new combustion engines. Both have very different prospects for the future.

And even there, the political framework conditions can completely change again. Risk always exists, as has been said many times before. I do not consider real estate to be the best asset class, but it is also a lifestyle decision. Anyone who does not build under framework conditions like those you described is also too afraid to invest in stocks, and for them gold is also too expensive since it has risen so much lately, etc. Then your money lies uninvested or unattractively invested (overnight money, fixed deposit) your whole life and all value increases happen without you. Everyone as they see fit, but I would say, if I want to build and can build, then I build.