Preliminary construction inquiry for land purchase: What should be considered?

That depends on how restrictive the development plan would be. I would go to an architect and have a simple preliminary building inquiry carried out to clarify how much buildable area is ultimately available. That doesn't cost a fortune.

Currently, there is a green area there. However, our property would fall within the scope of the resolution to prepare the development plan. Therefore, I assume that the development can probably be realized according to §34 even without a development plan?

Oh, there is already a resolution to prepare the plan. If you say (careful, without a link!) where to look for it (municipality, name of the future development area), then more precise information can be given here. If the property is supposed to fall within the scope of this plan, it will probably also be taken into account in the development planning. You will still have to wait for when the development (infrastructure) arrives – but that it can be connected is no longer in doubt. Secure for yourselves, along with the property, a right of way, access, and utility rights over the seller’s property so that you are not "left hanging" until this development can take place. Also consider, given the size of the property, that areas might have to be ceded to build the road. It is common to assume a flat rate of 20% of an area for public use (road including accompanying greenery, transformer station, parking spaces, and garbage truck turning area). Take a close look at both the resolution to prepare the plan and the development plans of the municipality from recent times (and the amendments of older plans!). Expected restrictions may already be emerging there. Typical newly issued development plans nowadays are a mixture of an appearance of modern administration with citizen-friendly market proximity on one hand, and often excessive closing of loopholes from recent experience on the other. The former often manifests in promoting the madness of creating semi-detached houses owned individually – but also in, for example, a minimum plot size of 500 sqm for development. The latter often leads to complicated regulations on eaves heights, roof width, knee wall height, and the like. As long as you manage to preempt the development plan process successfully, little of this will affect your project, since it will still be assessed under the old law (probably §34 here). Therefore, above all, keep in mind how much area remains after any possible dedication for public needs.

As a precaution, also make sure to participate in the public involvement concerning the development plan to be prepared. After the resolution to prepare, the plan is developed (either by the local building authority or a commissioned engineering firm) and nowadays usually an informational event presenting the draft is held, followed by disclosure and involvement of the authorities and bodies involved (TöB). Afterwards, the plan is discussed in the municipal council and disclosed again. Check the citizens’ information system for minutes of such matters related to previous development plans. There you can see a lot about where things are heading (trend: low floor area ratio, green flat roofs, precautions regarding heavy rain events, prevention of excessive building mass, the most meticulous regulation of front yard botany and roofing materials, narrow property access drives, steering toward district heating, avant-garde climate goals i.e., anticipation of the next stage of the building energy law). Overall, municipal councils from the capital to the remotest places suffer from the tendency toward fragmentation. Municipal councils with only four parties have become the exception, which is reflected in the complex discussions and the pace of consultations. Needless to say, this also applies to the procedural duration between the preparation resolution and the installation of street lamps :-(

It seems to me that the owner would like to entrust us with the task. I find that understandable if we want to secure something 'in advance.'

For you as not-yet owners, a formal-free but written statement from the current landowner would be helpful that you are purchase-interested parties for the subdivided parcel.

There will be a development plan for the new development area, and it will probably also be applied to your property as part of the resolution to prepare the plan. That would be my assumption.

I don't necessarily see that as common. I have often experienced otherwise in my area; garden land adjacent to a new development area was not allowed to be parceled off as a second building plot, even though a new development area had arisen behind it. Only once all houses were built could one expect with a successful lawsuit that building in the second row directly on the new development area would be permitted.

A short update: We recently submitted a preliminary building inquiry and are now waiting for feedback from the municipality.

What is currently on our minds and has surely been discussed in the forum before: How would you approach purchasing the plot of land in light of the current interest rate situation? I mean, if interest rates climb to 5% or more, it will, in my opinion, eventually become difficult to finance a new build. Nevertheless, the opportunity to purchase the plot with own funds is precisely available right now. Is that simply the famous residual risk? Or how would you act in our situation?

Is that simply the famous residual risk? Or how would you act in our situation?

Sorry, I can't follow you. We don't know your financial situation at all. I would say, if you have a million in the account, the risk for the house construction is rather low. If you have to finance 100%, I would rather advise against it.

Hello Katja, thank you for your feedback. For us, it would be such that we would finance the land from our own funds, and the actual construction would have to be financed. The land would make up about 20 percent of the total value. Does that help?