ᐅ Plot and House – How to Get Started?

Hello everyone,

Great to have this community!

My husband and I are planning to buy a house or build a new one sometime in the distant future. People often stick to their usual ways, but right now I’m missing a clear structure for the optimal process.

One thing you should know: we have hardly any(!) savings or equity.

I keep wondering: Is it better to buy the plot of land first (with a loan), OR do you find a plot and a suitable planned house together, then approach the bank with both to apply for a mortgage? I imagine the second option might be difficult since the house design won’t be completed within just two weeks.

Regarding the first option, which I find more appealing, I wonder if I would still be able to get a loan for the house since I’d already have debt from the land purchase?

Or the third option: Do you find a construction company that “sells” both the house and land together?

How did you approach building a new house?

Thanks a lot!

You choose the option that the market will offer in the distant future.
In the ideal homebuilder’s paradise, I would proceed as follows:
- Choose the location where you want to live
- Ask the bank how much financing they can provide
- Buy a plot of land where you are allowed to build your dream house
- Find a construction company that can build a house as close as possible to your dream home within the remaining budget

Current reality:
- There are hardly any plots available without developer restrictions
- There are few affordable developers
- There are hardly any reliable construction companies available with free capacity

Escroda schrieb:

- Choose the location where you want to live
- Ask the bank how much financing they are willing to provide
- Purchase a plot of land where you are allowed to build your dream home
- Find a construction company that can build a house as close as possible to your dream home within the remaining budget

This is a great way to get started. On popular property portals, you can quickly get an impression of the region where you want to move. Additionally, check with the local authorities about current new residential developments.

Always consider the budget question.

What is financially feasible and what can I afford?

OUR approach:

Looking for plots
Visiting building fairs, talking to people, collecting flyers
Looking for plots
Drawing floor plans, discussing plans for children, basement, open kitchen, attic, walk-in closet?
Looking for plots
Going to model home parks and checking out every house, gratefully taking every floor plan
Looking for plots
Having discussions with 2-3-4-5 construction companies
Looking for plots
Visiting more model homes
Getting quotes from 2-3 companies
Looking for plots
Visiting plots
Committing to a construction company
Looking for plots
Signing the contract with the final company after the 4th meeting, including a void clause if no plot is found by date X
Looking for plots
Checking plots from the builder
Continuing to look for plots
Extending the contract with the construction company after one year
Continuing to look for plots.
...
It took us 3 years until construction started.