ᐅ What is the correct approach? Feeling a bit unsure / under time pressure

Hello,

As the situation with the plot of land is becoming more concrete and we have now been able to reserve it from the owner (overall 14 days), I’m having some difficulties structuring our house building project and figuring out the best approach. Maybe you can help me or at least reassure me.

Current status:

• Plot on a slope (buildable according to §34 of the Building Code) reserved, purchase price still to be negotiated.
• Our preferred construction advisor has requested the “electronic surveying data” (??) from the building authority to check the best way to develop the site. We are waiting for a response due to holiday season and understaffing at the building authority.
• At the moment, there is no building proposal, plan, or anything similar on which to base an estimate of the house price plus additional construction costs.
• To pay for the land and build the house, we need a loan. Here I see a chicken-and-egg problem since banks require a cost breakdown for land and house.
• Quotes for the shell construction, basement, etc. can only be obtained once the plan is finalized. This will surely take a few more weeks (assumption).
• I don’t think it makes sense to take out a separate loan just for the land, and the forum also repeatedly advises against this (rightly so).
• We visited a representative of Dr. Klein on Friday regarding inquiries and still have two appointments this week with our local banks for initial loan inquiries based on estimated costs for the house (land plus additional costs are almost fixed).

My head is spinning right now, and I’m not quite sure how to start. We have about one week left for the plot (possibly a grace period), but then the purchase contract and notary must be arranged, and for that, the approved loan is already necessary. Here, I see a serious timing problem.

I would be very grateful for any advice!

Regarding point 6: No, that is indeed possible and can even be practical.

Otherwise: talk to your bank about what financing options are available. You don’t need detailed plans of the house for that.

If time is tight and you’re fairly certain that it’s the right plot and that it’s suitable for building: have the purchase contract prepared – you gain time (which, however, comes at a cost).

You are building a house, so nothing should be rushed! Stick to this advice, as it will save you not only stress but also money in the long run.

You could have also visited the land registry office in person; it took me less than 5 minutes to get the information I needed.

What surprises me is that if you have made a reservation, you should be able to give a firm commitment and make a deposit if required. The notary appointment will not take place for a few weeks anyway.

Have you had a preliminary discussion with the bank about what is possible?

What is your approximate income? There are plenty of examples in the forum about what is theoretically achievable.

Sign the purchase contract (if it’s your dream plot) and date the handover and payment for, for example, December 19th 🙂

Of course, this assumes that there are no obstacles to obtaining a loan.

We purchased our plot of land with a variable loan. It can be terminated every 3 months to be replaced by the final mortgage.

Of course, this only makes sense if you are certain about the plot.

Hello,

thank you for the responses!
We are aware that this shouldn’t be rushed, which is why we are asking these questions here.

This would be our dream plot, but during the viewing with our future building supervisor, we noticed that it is very narrow and that the neighbor’s house (not a garage) extends right up to the property boundary (I have explained this in another thread here in the forum).
During the viewing, the supervisor mentioned that he would first like to review the survey data to ensure that only feasible and not prohibitively expensive construction options are possible, since the plot has a slight trapezoidal shape. He wanted to clarify this.

Both contacts at the cadastral office were on vacation last week (yes, both my contact and their deputy :O), so we had to wait until this week.

We know what is affordable for us; we have already spoken to Dr. Klein and also have an appointment at the local bank this Thursday.
The plot is supposed to cost around €155,000 (155,000 Euros) (about €250/m² (approximately $23/ft²)), which is a bargain for the area here (usually around €360–400/m² (about $33–37/ft²)). Since it is so inexpensive, we want to clarify a few things first.

The tip from @ypg about handing over at a later date is a good idea, thanks!
After all, construction won’t start until next year at the earliest, even if everything goes perfectly.