ᐅ Plan the house first and buy the land afterwards?

I see potential problems if interest rates rise. I know several financing agreements that become quite unstable when the fixed interest period ends after 10 years and interest rates are slightly higher. They are already struggling now and have sometimes planned based on salary increases that might happen at some point in the future.

In our area (rural), houses are generally getting smaller. Homes over 180m² (1,938 ft²) used to be the standard. I believe the reason for smaller houses is due to smaller plots of land and increased costs.

Bieber0815 schrieb:
You really need to earn well to save up 200,000 to 250,000 euros in such a short time by just saving.

I thought the same and seriously wonder how that is supposed to work under normal circumstances. Not to be misunderstood, I truly wish that for everyone, but saving 250,000 euros by the age of 29??? Let’s assume the saving period was 12 years, so starting at 17. Then that would mean setting aside 250,000€ / (12 * 12) = 1,736,...€ every month, while still having a social life, covering living expenses, and maintaining a car. Respect! I can’t imagine how that works, and at the same time, I feel pretty bad because I seem to be the biggest spender [emoji23]

Regarding the original question: I thought similarly about 4 years ago. I planned two or three house designs in advance, to have the right house ready for different plot situations and just find the land. It turned out differently: after four (!) years of searching, I found exactly one plot with 420m² (searched always between 500m² and 600m²), and that was it for my own house designs. I went to an architect, shared my ideas and wishes, and got a floor plan designed for me and my wife that fit this plot with its specific conditions and zoning plan restrictions. We are very satisfied; we would never have come up with this floor plan ourselves and would have built way too big (for example, too large circulation areas). What I want to say is: first find a plot with a zoning plan that allows your style of house, then reconsider whether your wishes have changed over time, clarify what you actually need, and then go to an architect. I feel your wish list will have changed in 5 years, by which time you’ll be in your mid-30s and probably in a different phase of life...

In the meantime: keep saving equity, but please don’t forget to enjoy life. Financially, you already have very solid conditions, so there’s no need to overdo it [emoji6]

I always worked overtime. Sunday pay rates were 70 percent higher and tax-free. Night shift allowances were 25 percent, also tax-free. I often worked on public holidays too, earning 150 percent extra. I even worked a bit during vacation. However, I plan to leave shift work in the next four years. I figured it’s better to earn as much as possible now while I still have time and no children yet. Personally, I don’t mind working a lot. In industry, you usually don’t wear yourself out physically. As a skilled worker with some overtime, the pay you get when you’re in a high wage group would surprise some graduates as to what they studied for. Regarding savings, I also had good starting conditions in life. I never paid rent, only utilities; the car was paid for by my grandparents. They had saved for each grandchild back then. My parents had also saved 20,000 (no currency) for me. The rest, however, came from me. And my girlfriend and I bought furniture together.

As I said, I mean this sincerely: Respect! Showing so much discipline and sometimes even sacrifice to be able to realize the dream of owning a house in the (from the perspective of a young person in their early 20s or younger) distant future is truly commendable! Even more luck to you when the time finally comes in a few years [emoji4]

hanse987 schrieb:
I see more problems arising if interest rates actually increase at some point. I know several loans that become very unstable once the fixed interest period ends after 10 years and rates rise even slightly. They are already struggling now and have budgeted based partly on possible future salary increases.

Anyone financing around €375,000 (approximately $410,000) or more over 10 years with a 1% repayment rate nowadays must be considered reckless and will have only themselves to blame after 10 years. Although I wouldn’t wish it on anyone.

A great starting point. Living rent-free is also an incredible factor when it comes to saving. And being so diligent—it's really something to be proud of. If I were you, I would definitely start looking around to see if you can find land. That is usually the toughest part. Given the current market situation, it won't be easy. For example, every weekend we got in the car and visited all the towns and villages that were an option for us. We looked for vacant lots, abandoned farms, or ruins and approached owners directly. You can’t be shy about it. Always make inquiries in writing so the potential seller doesn’t shut down immediately but has time to think it over. After about a year, that’s how we found our dream plot.