Plan: Buy land, build in 10 years?

Hello everyone,

I am 31 years old and single. In recent years I have "lived well" and therefore could not save much equity. I am a civil servant (indismissible) and have no financial obligations/loans running.

I am considering securing a building plot in the city where I live (cost: 37,000 - 55,000 euros) and acquiring it to pay it off over the next 10 years.

While repaying, I continue to save and would then have enough equity to build a house afterwards. My demands are modest, so a small house for 140,000 euros would suffice. The advantage would be that I currently benefit from the low interest phase, who knows what it will be like in 10 years. On the other hand, I don't earn more than 1.5% interest anywhere, so my money also continues to lose value with higher inflation.

What do you think of this approach?

Regards,
Jacky

Often there are regulations that a property must be built on within X years after purchase. In our new development area, for example, it is 3 years. I would advise you to find out about this first. But you probably won't get a house for €140,000. Ok, maybe a very small one, but then there are an additional €30,000 to €40,000 in incidental construction costs, landscaping, new furniture, kitchen...

Hello

why don't you buy yourself an apartment?

Why no apartment? Because that does not correspond to my life plan. I would really like to have a small garden, if only for the dog.

Marsupilami is right. Often, the purchase of land from the city or municipality is tied to a deadline within which building must take place. It can be different with land purchased from private individuals.

Here, the buyers have 2 years to build. Owners who did not sell their land to the city before development have no deadlines and can wait as long as they want to build.

I just spoke with the local building regulations office. They say there is nothing against that. Depending on the property, I should contact you and you will check what the development plan allows. In this respect, my plan seems to be feasible.