When is the best time to build a house

Hello everyone.

I don’t really have a direct question but rather hope for a debate and different opinions on house building in the future...

Personally, I would like to build a prefab house (single-family house) in the Hannover region in about 2-5 years. Until then, I plan to save up equity and hope that there will eventually be affordable plots or plots at all. Because currently, the area where I’m looking doesn’t look very promising.

In terms of timing, I am quite flexible regarding house building, meaning I won’t necessarily need a house in the next few years, but if the situation is favorable, I would of course take advantage of it since I am aiming for a house in my old age anyway. Children are expected for me and my girlfriend in 5-8 years.

I assume that building has become significantly more expensive due to the immense price increases in recent years?! Various statistics mention cost increases of 2-4% per year.

After the current construction boom, which will certainly continue for a while, can we expect lower prices again or more discounts if order books are no longer as full?

Is building maybe already almost cheaper than buying a young existing single-family house?

If interest rates rise in the next few years, what would be the consequence?

I would appreciate a few opinions on this topic, especially whether it would be wise to wait with building as long as the situation allows?!

Best regards

I assume now the glass balls are being cleaned?

As far as new construction is concerned, I wouldn't get my hopes up; why should plots of land that are not exactly in undesirable locations become cheaper? In a few years, the next energy saving ordinance will also come into effect, which will set even higher standards, and that will not exactly push prices for new buildings down.

What can happen, however, is that some people may fall victim to a low fixed interest period if interest rates have risen again and they have calculated very tightly. While no one wishes that upon anyone, it will probably happen. I don't believe interest rates will suddenly be back at 5 percent, but a slight increase from this very low level is quite within the realm of possibility.

[Glaskugel aus, Herd an]

I agree with the previous speaker, except regarding the [Energieeinsparverordnung]. I think reason is slowly returning. The Greens have passed their zenith.

The next Energy Saving Ordinance is coming in 2021, as stipulated by the EU [Gebäuderichtlinie]. It calls for nearly zero-energy buildings, and that will probably not be a standard house under the Energy Saving Ordinance 2016.

Save up equity, possibly put it into [bauspar] (but I'm not a fan of that). If you’re not under any pressure, wait and see what time brings. Especially when the fixed terms expire with rising interest rates. How is your job situation? Secure? Flexible enough to move? Maybe a [ETW] is worthwhile.