Hello House Building Forum,
I have been following for several years now because we want/wanted to build a house someday. So far, we have mostly waited, partly because our jobs required us to move around a lot, partly because we were saving capital, and also because we never really had the “free time” to dive deeper into the process. And it is the latter point that this post is about.
A few things have changed over time:
What has not changed at all over the years is the time issue. Looking back, I can say that this will not improve significantly. I have always been heavily occupied professionally, which is one reason for our relatively good income. This situation will likely continue for the foreseeable future. My spouse is in a similar situation, mostly due to the children. Of course, there are occasional quieter periods, but besides family time, there is not much more than a few afternoons or weekends scattered over several months. One could debate at length about this, but it comes down to different priorities and balancing work and private life.
We have a good living situation and rent a townhouse. It’s not like we urgently need to buy right now. However, over the years I have realized that if we keep waiting for big changes, we will just keep delaying. And after a while, it becomes painful to continue without owning property, paying a substantial rent (2,000 per month), and keeping house-building dreams unrealized.
Over the years, I have read several threads here about searching for land. Common advice includes:
It makes sense that these strategies can help discover hidden gems or bargains. But every situation is different, and I think for us it is unlikely that we would be successful with these measures. On the other hand, our budget does not force us to rely entirely on purchasing land below current market value. We are selective, but so far this has not become a problem.
That’s our situation; now for the actual question:
What other ways are there to find a suitable plot? Online portals mostly show unusable listings. Does it have to be a real estate agent in our case? Aren’t they usually very locally limited? Is the only solution to save even more money and then go hunting with a stronger financial position?
Thank you and best regards
MatthiasBW
I have been following for several years now because we want/wanted to build a house someday. So far, we have mostly waited, partly because our jobs required us to move around a lot, partly because we were saving capital, and also because we never really had the “free time” to dive deeper into the process. And it is the latter point that this post is about.
A few things have changed over time:
- I now have a job that allows me to work from home, only occasionally needing to go to the office or visit clients. This provides flexibility and stability in terms of location.
- Our children are now 3 and 7 years old; planning is complete, and they are past the most demanding phase for now, at least for a few years.
- We have managed to save around 200,000 in equity, and most months we add another 2,000–3,000.
What has not changed at all over the years is the time issue. Looking back, I can say that this will not improve significantly. I have always been heavily occupied professionally, which is one reason for our relatively good income. This situation will likely continue for the foreseeable future. My spouse is in a similar situation, mostly due to the children. Of course, there are occasional quieter periods, but besides family time, there is not much more than a few afternoons or weekends scattered over several months. One could debate at length about this, but it comes down to different priorities and balancing work and private life.
We have a good living situation and rent a townhouse. It’s not like we urgently need to buy right now. However, over the years I have realized that if we keep waiting for big changes, we will just keep delaying. And after a while, it becomes painful to continue without owning property, paying a substantial rent (2,000 per month), and keeping house-building dreams unrealized.
Over the years, I have read several threads here about searching for land. Common advice includes:
- Driving around municipalities looking for empty lots, asking neighbors
- Proactively contacting town halls or local authorities to express interest
- Applying to new development areas, where scoring systems often favor applicants with local ties
- Waiting for something to happen as described above
- Opportunities through relatives (not applicable to us)
It makes sense that these strategies can help discover hidden gems or bargains. But every situation is different, and I think for us it is unlikely that we would be successful with these measures. On the other hand, our budget does not force us to rely entirely on purchasing land below current market value. We are selective, but so far this has not become a problem.
That’s our situation; now for the actual question:
What other ways are there to find a suitable plot? Online portals mostly show unusable listings. Does it have to be a real estate agent in our case? Aren’t they usually very locally limited? Is the only solution to save even more money and then go hunting with a stronger financial position?
Thank you and best regards
MatthiasBW
MatthiasBW schrieb:
What other ways are there to find a suitable plot of land?The only real option is to consistently check all the usual channels every day: online listings, newspapers, going door-to-door, telling everyone you know that you’re looking for land, whether they want to hear it or not. And when a suitable opportunity arises, you have to act very quickly. That’s why you need to have all your homework done in advance regarding construction costs, renovation expenses, etc. Being selective is fine, but only upfront. If you hesitate too long, you’re out.
MatthiasBW schrieb:
I now have a job where I work from home and only occasionally have to visit the office or clients. That provides flexibility and stability regarding the location choice.Then you can afford to make your search radius in the triple digits (kilometers). I don’t like to say this, but you really have to invest time — or settle for what’s left, or for relatively expensive properties (resale or developer projects) that don’t sell as quickly.
H
hampshire7 Jul 2021 08:21MatthiasBW schrieb:
What other ways are there to find a suitable plot of land?Besides the recommendation to buy an existing property, there is another practical solution. A hacker would call it "brute force." Offer more than others for your dream plot, and it becomes easy. In a way, you are paying for the effort you don’t have to invest in searching. Problems that can be solved with money can also be solved with money.A real estate agent does exactly what you don’t want—they take the time to deal with the topic (your wish) and invest effort. This is basically what their commission is for (currently not necessarily guaranteed due to the market situation).
If you want something new, then probably only a developer comes into question, where you still have to choose tiles, toilets, etc., ideally in 1-2 appointments. Be aware, when working with an agent, the commission and additional costs usually apply to the entire construction project 😉
In Baden-Württemberg or in areas where a 2,000 Euro (about 2,000 USD) rent for a terraced house is common, everything else is also expensive, and with 200,000 Euro (about 200,000 USD) of equity, you’re likely in the middle range of applicants rather than the top in terms of liquidity...
From experience, this might be enough for a plot where a mid-terrace house plus terrace fits, or half a (small) plot for a detached or end-terrace house. Then consider around 3,000 Euro per square meter (about 280 USD per square foot) of living space, 50,000 Euro (about 50,000 USD) in additional building costs, and 50,000 Euro (about 50,000 USD) for landscaping. That likely brings you quickly to 800,000 Euro (about 800,000 USD) or more for 150 square meters (1,615 square feet) without a basement and without luxury, on a small plot. A loan of at least 600,000 Euro (about 600,000 USD) would then roughly mean a monthly payment of around 2,000 Euro (about 2,000 USD).
Young existing homes (without major renovations) have the advantage of being more of a quick approval process without having to think too much.
If you want something new, then probably only a developer comes into question, where you still have to choose tiles, toilets, etc., ideally in 1-2 appointments. Be aware, when working with an agent, the commission and additional costs usually apply to the entire construction project 😉
In Baden-Württemberg or in areas where a 2,000 Euro (about 2,000 USD) rent for a terraced house is common, everything else is also expensive, and with 200,000 Euro (about 200,000 USD) of equity, you’re likely in the middle range of applicants rather than the top in terms of liquidity...
From experience, this might be enough for a plot where a mid-terrace house plus terrace fits, or half a (small) plot for a detached or end-terrace house. Then consider around 3,000 Euro per square meter (about 280 USD per square foot) of living space, 50,000 Euro (about 50,000 USD) in additional building costs, and 50,000 Euro (about 50,000 USD) for landscaping. That likely brings you quickly to 800,000 Euro (about 800,000 USD) or more for 150 square meters (1,615 square feet) without a basement and without luxury, on a small plot. A loan of at least 600,000 Euro (about 600,000 USD) would then roughly mean a monthly payment of around 2,000 Euro (about 2,000 USD).
Young existing homes (without major renovations) have the advantage of being more of a quick approval process without having to think too much.
Tassimat schrieb:
The only real help is to regularly check all the mentioned channels every day: online, newspapers, knocking on doors, telling everyone you’re looking for a plot of land, whether they want to hear it or not.Totally agree ...Tassimat schrieb:
And when something suitable comes up, you have to be able to act quickly. That’s why you need to have all your homework done in advance regarding construction costs, renovation costs, etc. Being selective is okay, but only beforehand. Anyone who takes too long to decide is out.... strongly emphasized.Tassimat schrieb:
Then you could just set the search radius to triple digits.No, that just leads to more frustration rather than a higher chance of success, just like using a broader search.https://www.instagram.com/11antgmxde/
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