ᐅ Confirmation of the Plot and Next Steps

Hello everyone,

I’m new here. My wife and I have been looking for a suitable plot of land for quite some time. We have now found a 605 sqm (6500 sq ft) plot that we like. After consulting with the local municipality, we had to submit an application for the plot. Today, we received an email from the mayor informing us that we have been awarded the plot. So far, we do not have a planned house design nor financing approval for either the land or the house. Our first appointment is on Friday at the prefab house exhibition in Erlangen. I am now wondering what the best approach is: to fully finance the land and house separately or to finance everything together.

Best regards,
Marcus

What was your intended use for the plot of land? Usually, there is a specific need (for example, planning to have children and the couple’s apartment becoming too small), so the idea of building a house naturally develops. 605 square meters (6500 square feet) is above average by today’s standards and it is quite unusual not to have concrete plans for it yet – for a “roof over one’s head” for a typical family, half that size would be sufficient. The description sounds like a newly developed residential area, where there are usually zoning plans (including restrictions on house design or exact placement). In my opinion, it would be best to start two threads here: one about the house, including the completed questionnaire and representations of the plot in the first post, and a second one about financing. One house, but two very different communities within the forum.

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I would suggest checking with different banks or loan brokers to see what kind of financing you could get. The fact is, if you initially finance only the land, this isn’t necessarily a problem because it counts as your equity. However, the bank financing the land will hold the first lien on the land registry, which significantly limits your options for financing the house itself.

So, if you want to start building soon, it’s better to finance everything together. For further “advice,” consider creating a thread in the appropriate subforum where you can share your financial situation, your preferences, the land price, and your current equity.

An important question will be how quickly you need to buy now and when a realistic construction start would be, as this also plays a role. I assume the municipality will want to process the purchase quickly, but you will likely need some time before construction actually begins. After all, you’re not even really in the planning phase yet!

How are the finances? What do you earn, and what are your expectations?

Acxiss2020 schrieb:

We have our first appointment on Friday at the prefabricated house center in Erlangen.

We once had two appointments at a model home park (Wuppertal). The whole day was a complete waste of time for us. In our experience, the focus in model home parks is solely on quick sales. You won’t get truly detailed and well-founded advice there.

However, model home parks are useful for getting an idea of what you like and don’t like. You can gather ideas and then explore them further at home online. Pick floor plans that appeal to you and try customizing them yourself.

I would recommend talking to small local companies—carpenters, design offices, etc. They will take the time you need, especially at the start of these discussions.

For the planning phase, you should expect at least one year. During this time, the topic of house building will dominate your free time.

At the same time, you should set a rough budget. What you can afford and what you want to afford are usually two very different things.

I can confirm this for most providers based in W, but fortunately, there are exceptions. It is definitely better to walk through the park just to gather ideas and then schedule appointments for detailed consultations. This way, there doesn’t seem to be as much pressure to close the deal.