Start a construction project, buy only the land or wait?

Yes, as long as it is built in a down-to-earth manner again. 120 sqm is enough for the family. But this discussion has been had here many times and most of the time it has to be about house sizes, etc...

Even with 120 sqm, the prices are too high. We've already discussed that. Even your standard row houses are unaffordable for ordinary people at 8%. 8% interest quickly translates to a 10% annuity.
And for a house on your own land, I won't accept less than a total budget of 500k in this area anymore, unless you contribute own work to an expensive trade. Even in rural areas, you need to set aside the first 100k for a plot of land, kitchen, incidental costs, landscaping, and from the remaining <350k you can then build the house. But significantly below 3000€ per sqm for move-in ready houses is now hardly achievable here.
I do understand that people here in the forum often build too big and luxurious. But I also see what we are missing out on for a good 130 sqm (which I also think is enough for 2 kids). But just fixating on size ignores the fact that owning a home actually becomes unaffordable for many due to the interest rates, Kamikaze financing excluded.

Back to the topic. I find it difficult to give you good advice. If you are happy with the rent itself, I wouldn't necessarily push you out of it. On the other hand, good rental apartments or houses are also very difficult to find. Therefore, I would agree with 11ant and first get things settled and then see what you build on it.

Yes, as long as it is built down-to-earth again. 120 sqm is enough for the family. But this discussion has already been had many times here, and most of the time the house sizes etc. have to be mandatory...

Yeah, exactly … 120 x 3000 already gets you 360,000 bucks. Add 100,000 euros for the land, then about 15% additional costs and you're already at around 520,000 euros. Buy a kitchen and furniture and a few things here and there, and you're out 550,000 euros.
Now you're in your early/mid 30s and have diligently saved 150,000 euros, which is very good. You still have to finance 400,000 euros, and that with a simply assumed 8%. With 1% repayment, that's a 3,000 euro monthly rate. Be honest, is that something the broad masses can finance? The interest rates will be reflected in the prices, I am firmly convinced … already at about 3%, which we will probably see by the end of the year. The demand will simply no longer be there.

with 8% unaffordable for ordinary people. 8% interest quickly means 10% annuity.

with the simply taken 8%.

Guys, stay grounded. I myself experienced the 8%. A very short time in the mid-90s. The absolute outlier upwards – it never happened before or after. The average interest rate over the years is about 4% – nominal, not real.

And with the average – which neither I nor any experts even remotely see – we are not at 8,x + 1 repayment, but at 4+1 (2).

Yeah, exactly … 120 x 3000 you’re already at 360,000 bucks. Add 100,000 euros for the plot, then about 15% incidental costs and you’re already at about 520,000 euros; buy a kitchen and furniture and a few extras here and there, you’re at 550,000 euros.
Now you’re in your early/mid-30s and have diligently saved 150,000 euros, which is already very good. You still have to finance 400,000 euros,

And with that, you are exactly at the average with your numbers. 400 thousand euros will then cost +/- 1,700 euros. Rent costs are often already at this level today. So as an average, you can still build well.

Guys, stay grounded. I personally experienced the 8%. A very short period in the mid-90s. The absolute outlier upwards – it never occurred before or after.

Don’t trust any statistic you haven’t faked yourself ;) – a quick look just at the 1980s shows very quickly that there were indeed bigger outliers, 10% - 12%.
And, which decade does our current inflation fit into again? ;)

Guys, stay grounded. I myself experienced the 8% once. A very short period in the mid-90s. The absolute peak upwards - it never happened before or after. The average interest rate over the years is about 4% - nominal, not real.

You were the one who jumped on the 8% and said you just have to build 120sqm then. And at the same time you post prices for housing complexes that are already well over €2500/sqm ;)
I also don't think we'll come anywhere near 8% in the foreseeable future, but the mentioned €400k at €1700 correspond to 2.5–3% already have a term well over 25 years. And that includes, for example, the assumption that you get a plot for €100k. In many areas, you won’t even manage that with a terraced house plot (200sqm at €500).

Hey you two....the OP had kindly asked not to fall into fundamental discussions, this is getting really confusing here right now. Since the construction cost thread is actually the right one ---> go for it ;)