ᐅ Homebuilding Forum – Would You Choose to Buy or Build a House Again?
Created on: 11 Dec 2015 11:09
X
xycrazy
Hello,
we are about to sign the contract with the developer but have started seriously reconsidering whether we should go through with it.
We negotiated for 8 months and were quite sure about it. However, towards the end, some issues arose regarding the contract and other matters, which we managed to resolve.
It now looks like we would be paying a third of our net income to the bank for 22 years. I think we can afford it. But when you are used to paying monthly rent of about €800-900 (divided by 2), this is quite a different level.
With a house, it’s not just the loan payments; there are ongoing maintenance costs as well. From what we’ve read, this is roughly €2-3 per m² (about 0.2-0.3 per sq ft) per month. So that’s another €400-500 per month. And, of course, there is much more work involved too.
Admittedly, this is stressing us out quite a bit, especially my partner. She is worried about the heavy financial burden each month. Is that justified?
We don’t want to live just for the house; we want to go on vacations, avoid problems with children, and so on. As I said, the current situation is manageable, but we wonder if we might be underestimating the costs.
So here’s my question to the community: looking back at everything you know now about loans, maintenance costs, upkeep, and so forth, would you buy or build a house again?
If yes, why? If not, why not? I’m really interested to hear your thoughts! And were there any surprises—positive or negative—that you didn’t expect?
Regards
we are about to sign the contract with the developer but have started seriously reconsidering whether we should go through with it.
We negotiated for 8 months and were quite sure about it. However, towards the end, some issues arose regarding the contract and other matters, which we managed to resolve.
It now looks like we would be paying a third of our net income to the bank for 22 years. I think we can afford it. But when you are used to paying monthly rent of about €800-900 (divided by 2), this is quite a different level.
With a house, it’s not just the loan payments; there are ongoing maintenance costs as well. From what we’ve read, this is roughly €2-3 per m² (about 0.2-0.3 per sq ft) per month. So that’s another €400-500 per month. And, of course, there is much more work involved too.
Admittedly, this is stressing us out quite a bit, especially my partner. She is worried about the heavy financial burden each month. Is that justified?
We don’t want to live just for the house; we want to go on vacations, avoid problems with children, and so on. As I said, the current situation is manageable, but we wonder if we might be underestimating the costs.
So here’s my question to the community: looking back at everything you know now about loans, maintenance costs, upkeep, and so forth, would you buy or build a house again?
If yes, why? If not, why not? I’m really interested to hear your thoughts! And were there any surprises—positive or negative—that you didn’t expect?
Regards
xycrazy schrieb:
I'm surprised that the vast majority would do it again! Can you share your living space sizes? We are currently at 200m² (2,150 sq ft) and are wondering if that might be a bit too large, especially considering our age.As I mentioned above, very few people in a home building forum are in favor of renting. So don't be misled.
I have always wanted to own my own home and have felt miserable as a renter. I simply need the space and freedom and have never understood how anyone can squeeze their life and living into a typical living room-bedroom-kitchen-bathroom layout. Being crammed close together with complete strangers has always annoyed me, and moving around so often never allowed me to form real connections (it started early; I attended three different primary schools in four years). We moved every two years. I wanted a home where no one could kick me out and where everyone else except me (and now my husband) was only tolerated.
Besides, I didn’t want to see or have to greet anyone when I stepped outside my door.
That can only be possible in an owner-occupied house, so this has always been my top priority. As soon as we could afford it (meaning, as soon as our financial situation was good enough for the bank to approve), we bought the house. Four years passed between my husband’s first job and the house purchase, which explains our very modest down payment, since he still had to support me as well.
I would say that real life finally began the moment we moved into the house. It’s still a complete construction site, but I would never move back into a rental property — even though I haven’t had a kitchen for four years. It’s my house, and I wake up smiling every day. The garden is simply a dream come true. Some heartfelt wishes, when fulfilled, don’t bring happiness and you realize you fooled yourself — but this was different!
So yes, looking back, I would definitely buy a house again!
Besides, I didn’t want to see or have to greet anyone when I stepped outside my door.
That can only be possible in an owner-occupied house, so this has always been my top priority. As soon as we could afford it (meaning, as soon as our financial situation was good enough for the bank to approve), we bought the house. Four years passed between my husband’s first job and the house purchase, which explains our very modest down payment, since he still had to support me as well.
I would say that real life finally began the moment we moved into the house. It’s still a complete construction site, but I would never move back into a rental property — even though I haven’t had a kitchen for four years. It’s my house, and I wake up smiling every day. The garden is simply a dream come true. Some heartfelt wishes, when fulfilled, don’t bring happiness and you realize you fooled yourself — but this was different!
So yes, looking back, I would definitely buy a house again!
Hello,
I’ll write something here as well...
We have only been living in our 150 sqm (1600 sq ft) house for two months. So far, we really love having our own home! However, there is always something to do, which ranges between enjoyable tasks and "dirty work."
Our mortgage payment is about 40% of one income because we’re cautious and want to make sure the house wouldn’t be at risk if something happens. We consider ourselves optimistic realists.
Cheers, torsan
I’ll write something here as well...
We have only been living in our 150 sqm (1600 sq ft) house for two months. So far, we really love having our own home! However, there is always something to do, which ranges between enjoyable tasks and "dirty work."
Our mortgage payment is about 40% of one income because we’re cautious and want to make sure the house wouldn’t be at risk if something happens. We consider ourselves optimistic realists.
Cheers, torsan
Since Friday, I have felt compelled to comment on this post.
On one hand, because I have seen statements like
Maybe this “magic” 30% figure happens to work right now here in the forum for middle-class families... Nonetheless, I find it almost irresponsible to claim that everyone within the 30% limit should or can manage it. This might work from a certain scale upward, but not below—and certainly not when considering the responsibility of a family with children.
What income can be considered truly secured today? I am referring here to people with average qualifications, for whom the economy or even a broken leg can disrupt a steady, buffered income. Sure, not everything can be secured, but a family without any financial buffer and forced to handle a very tight financing plan must face the risk that, for example, a multi-week illness can throw everything off balance.
Regarding your opinion about landlords—I get really upset!
Landlords (individuals) are usually people who invest money in residential properties to rent them out accordingly. This investment usually pays off only after decades but should be seen as a win-win business. If someone perceives themselves as being disadvantaged or favored, that likely needs to be assessed on a case-by-case basis. Always relying on rights or obligations is not always the diplomatic solution. This problem also occurs in the workplace (employees and employers), but also between any contracting parties—such as between clients and construction companies.
I don’t believe this forum is the place to rant about landlords—many of the builders here themselves plan to rent out properties and will just break even for the next 20 to 30 years, while potentially dealing with problematic tenants during that time.
On one hand, because I have seen statements like
T21150 schrieb:
But I am absolutely convinced that EVERY family can manage a building project if they keep their payments dependent on 30% of their own equity. One project may be smaller, another larger.
T21150 schrieb:
I say: Do you want to rent forever?
T21150 schrieb:
Those who are within the magic 30% figure and do not build today with the current interest rates—of course with reasonable fixed terms and secured incomes (life: life-threatening, as secure as one can predict)—must have entirely different reasons.
Maybe this “magic” 30% figure happens to work right now here in the forum for middle-class families... Nonetheless, I find it almost irresponsible to claim that everyone within the 30% limit should or can manage it. This might work from a certain scale upward, but not below—and certainly not when considering the responsibility of a family with children.
What income can be considered truly secured today? I am referring here to people with average qualifications, for whom the economy or even a broken leg can disrupt a steady, buffered income. Sure, not everything can be secured, but a family without any financial buffer and forced to handle a very tight financing plan must face the risk that, for example, a multi-week illness can throw everything off balance.
Regarding your opinion about landlords—I get really upset!
T21150 schrieb:
And landlords are: ... I won’t say anything more here. Otherwise, I would be sinning.
T21150 schrieb:
Either you enrich the landlord.
T21150 schrieb:
Some people live brilliantly and super-super well from this kind of rent, and when arbitrary actions come along, they are still completely screwed. In the end, the money is gone and goes to a bank.
Landlords (individuals) are usually people who invest money in residential properties to rent them out accordingly. This investment usually pays off only after decades but should be seen as a win-win business. If someone perceives themselves as being disadvantaged or favored, that likely needs to be assessed on a case-by-case basis. Always relying on rights or obligations is not always the diplomatic solution. This problem also occurs in the workplace (employees and employers), but also between any contracting parties—such as between clients and construction companies.
I don’t believe this forum is the place to rant about landlords—many of the builders here themselves plan to rent out properties and will just break even for the next 20 to 30 years, while potentially dealing with problematic tenants during that time.
T21150 schrieb:
I’m very sorry that you, as a moderator, are getting so upset with me here.You don’t need to apologize for that – a forum thrives on exchange of opinions and experiences. I just believe that some posts shouldn’t be left as they are.
It makes no difference whether I am a moderator or just a member of this forum.
And yes: my frustration comes from completely opposite experiences, not from myself, but from a family member dealing with tenants and the costs and conditions involved in well-functioning rental situations.
Looking at everything together, the properties have probably only broken even over the last 30 years. The tenants are well taken care of.
T21150 schrieb:
So that the thread doesn’t go off-topic, you are welcome to continue the discussion with me via private message if you wish.I do not consider this topic off-topic, since it relates to the rental relationship – which often leads to the desire for homeownership, so we are well within this subject.
I have pointed out to the OP @xycrazy several times that the forum lacks the perspective of (happy) tenants. Therefore, the positive aspects of renting are also missing overall.
Looking at who participates in this forum, they are definitely not committed renters (otherwise they wouldn’t be building/buying or involved in construction). They are all homeowners planning their house, currently building, or who have completed their home in the past weeks, months, or 1–2 years. Everyone who has finished is currently enjoying that "finally done" feeling.
No one will show up here saying they can’t pay their mortgage anymore and regretting, "I never should have bought this house."
Nor will there be a 70-year-old regretting a house purchase from 20 years ago because they can no longer manage the house and garden physically.
The only ones who might appear and express negative opinions are those whose construction process went seriously wrong or where relationships broke down afterward.
No one will show up here saying they can’t pay their mortgage anymore and regretting, "I never should have bought this house."
Nor will there be a 70-year-old regretting a house purchase from 20 years ago because they can no longer manage the house and garden physically.
The only ones who might appear and express negative opinions are those whose construction process went seriously wrong or where relationships broke down afterward.
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