ᐅ What is the process of buying a house under construction or purchasing land?

Hello,

My partner and I want to build a house.

What we know:
- The approximate type of house we want (square meters, structure, features)
- That we would be approved for a loan and can afford the repayments. (A friend who works in bank lending told us how much we could currently borrow and what the monthly payments would be. However, nothing is confirmed in writing. It was just an informal conversation out of interest.)

What we don’t know:
- Which construction company we will use
- At which bank exactly we will take out the loan

Today we found a perfect plot of land. We really like it. The price and location are great.

Now, unfortunately, we don’t know how advanced the planning should already be at this stage. (No, we cannot buy the land without financing.)

Does it even make sense to start looking for land yet?
What should already be planned or contractually arranged?
We are quite cautious people, so I am also curious if it is possible to reserve a plot of land with the condition that financing will be approved?

Thank you very much in advance for your answers.

LaraM

That depends on how in demand the plots are in your area. Around Ingolstadt, the rule is that the highest bidder who pays first wins the contract....

Often, especially when building in a new development area managed by the local authority, you can reserve a plot until your financing is secured. It is also essential to review the zoning plan (building permit / planning permission), which specifies what can be built, the allowed height, and the size.

After obtaining the plot dimensions, you should roughly be able to position the house and, if applicable, the garage or parking space. Graph paper and a pencil can be very helpful for this.

You should also consider the orientation of the rooms in relation to the site.

The zoning plan shows how to respect property boundaries, as well as the required positioning of the roof ridge and eaves. It specifies the maximum building height and the required form of the house.

So, get started with your planning, read extensively in this forum, and ask questions if you cannot find answers using the search function 🙂

Good luck and enjoy your planning.

Best regards

And buying the plot of land is never a mistake. If your plans change, you can always sell it again. Because everything in this world that has value can be increased. Money, stocks, promissory notes—all except land and gold. Therefore, land cannot decrease in value. Karsten

We purchased the plot without a house design and then built it based on the second house plan. Unfortunately, we had to completely discard the first house plan; only the kitchen layout survived with minor modifications.