ᐅ Is the construction boom still ongoing?

schubert79 schrieb:

There are 32 building plots in our new residential development. Located 15 kilometers (9 miles) from Regensburg. Infrastructure is currently being established. Over 100 interested parties. Allocation follows strict criteria and a point system.

And have the 32 plots already been allocated? This is the key question number one – who has or will have enough money to at least secure the land? Although the allocation is based on “strict” criteria, financial affordability has not yet been included. A single parent who is also a caregiver with three children naturally has priority according to the point system, but this only counts to a limited extent with the bank. Point number two – buying and hoping for better times – the dream may fail next year or the year after, as interest rates rise and costs may not necessarily decrease at the same rate.

Mycraft schrieb:

I feel the forum has become a bit quieter.

I can confirm that feeling; it seems that way to me as well.

I did something I probably shouldn’t have—I browsed one of the real estate websites online, prompted by your post, to see what is currently available and how many properties match our criteria from about three years ago. There are several properties that would have been much more attractive to us back then (location, price, etc.) than our current new build, but they weren’t offered at that time. We only built out of necessity because there wasn’t an existing house on the market that met our requirements. That has changed now, so we could almost choose from a wide range of options. Around three years ago, only one existing house (literally: one) matching our interests was listed; currently, there are about 30 houses we would at least consider viewing. (By now, I also know the usual suspects with their bait-and-switch offers, which I have not factored into my current assessment.)

Overall, we have spent about 620,000 euros (approx. USD) for everything, including the land; for that amount, at least on paper, we could now have purchased something that better fits our location preferences. Admittedly, around three years ago, we weren’t looking in this price range because we assumed the new build plus land would be less expensive. ;-)

Still, our decision from three years ago was the right one because, given our age, we felt time was running out, and now we’ve settled in. 🙂

Pinkiponk schrieb:

I can confirm that feeling; it seems that way to me as well.

What I probably shouldn’t have done—but was prompted by your post—I browsed some real estate websites to see what is currently being offered and how many properties meet the criteria we set about three years ago. There are several properties that would have been much more appealing to us back then (location, price, etc.) than our current new build, but they were not on the market “at that time.” We only built out of necessity because there was no existing home available that met our standards. That has changed now, so we almost have the full selection again. About three years ago, only one existing home that interested us was offered; now there are around 30 houses we would at least consider viewing. (By now, I also know the usual suspects with their bait-and-switch offers, which I have not factored into my current assessment.)

Altogether, including the land, we have spent around 620,000 euros (about USD 670,000); with that budget today, at least on paper, we could have gotten something that better matches our preferences in terms of location. Admittedly, about three years ago we didn’t look at that price range, assuming the new build including land would be cheaper. 🙂

But three years ago, you probably weren’t financing at 3–4 percent interest rates like what’s common now? 🙂

alterego134 schrieb:

But three years ago you probably didn’t finance at the 3–4 percent rates that are common now, right? 🙂

We paid for the new house including earthworks, garage, etc. from the sale of our previous home and, contrary to our original plan, life insurance policies, and only financed the land. Unfortunately, the mortgage term is 5 years, with an interest rate of 0.66% and a repayment rate of 2.9%. The land was supposed to be paid off with the life insurance policies, which now had to help finance the new house. This means that in the medium term we are planning to take out a forward loan or follow-up loan.

But keep in mind that back then you probably got more for your old house than would be possible today, as poorly insulated houses with gas heating have significantly decreased in value or will do so. In other words, house prices are lower in better locations, but the resale value of the old house is also lower because there are fewer buyers now. So you did everything right! An energy-efficient new build already holds a lot of value today, especially when it comes to energy costs!

@Pinkiponk
How about you guys? Have you moved in yet?
Can you imagine selling your house and buying another one in your area?