ᐅ Procedure for Building a New Single-Family Home on an Existing Plot of Land

Hello everyone,

I know no one has a crystal ball here, but I would still like to hear your opinions:

We have just purchased a plot of land in Hesse, currently live cheaply, and have no urgent time pressure to build (although sooner is always better), except for the 5-year building obligation required by the municipality, which, however, can be extended by 1-2 years for justified reasons. We have slowly started planning and would like to possibly have the completed plans along with the building permit for our new single-family home ready to go, so we can react relatively quickly.

My assessment is that construction prices and interest rates will change little in 2023, even if they might stabilize at a high level. How 2024 or 2025 will look, of course, no one knows. But what is your feeling:
1. Rush the planning and possibly take advantage of a small "interest dip" in 2023 for financing and start with the belief that neither interest rates nor prices will significantly fall in the medium term, and waiting is just lost time.
2. Plan completely calmly, continue to build up equity, and assume that conditions for a new build may improve by the end of 2024 or possibly 2025.

If things become more concrete soon, I would be happy to provide more information for planning and share your feedback.
I welcome any questions and opinions 🙂

Best regards

What kind of house do you need? All predictions are just guesswork, and unpleasant surprises cannot be ruled out. Therefore, I would base it on what you require and when.

The conditions for new construction will not decrease.
They might become clearer in certain areas (such as insulation), but labor costs will almost certainly rise significantly afterward (see the current IG Metall agreement and various agreements in the construction sector).

I wouldn’t count on that. Interest rates could ease as soon as inflation slows down. How far they will go down, as I said, is anyone’s guess. This is definitely the bigger factor.

Hello,

here is a rough overview of our needs:
A single-family house in a rural area for parents and one child (currently a baby), with space for one or two more children after the project is completed. The ideal solution would be a house with a basement and a garage, although we know that due to the current situation, at least one of these will likely have to be dropped. The plot of land is already owned, as mentioned.
In addition to the necessary living and utility rooms, we need a home office and a small hobby room. Otherwise, I would aim for a standard layout. As for other questions—such as whether to have a children’s bathroom or not, an additional laundry/utility room, pantry, guest bathroom with shower, etc.—I cannot say for sure at this point.

Best regards

By "need," I meant less the specific room layout and more whether you require something soon or not. With children, I would approach this more quickly, as the extra space and private garden are valuable on their own.

Oh, sorry! I misunderstood. Of course, as mentioned, it’s nicer to have more space and garden earlier on. At the moment, we’re just managing with our one small child, but we are at the spatial limit. That means we can definitely get by like this for another 1-2 years, but realistically, in about 3 years we’ll need something bigger. It’s no longer feasible to accommodate a second child.
Therefore, the two options are to start soon or to manage as we are and begin by 2024 at the latest.

Best regards