ᐅ 130 sqm detached house or single-family home within my budget of 220,000
Created on: 28 Jan 2016 13:43
N
nils1985
Dear Forum,
Before my wife and I get in over our heads, I have a question regarding what is possible with a budget of €220,000 plus €20,000 in equity.
We are planning a single-family house in the Bremen/Lower Saxony area. The living area should be around 130 sqm (1,400 sq ft). We do not yet have a plot of land. The land costs approximately €45,000 to €55,000, excluding additional fees. The budget must cover everything, from closing the door to moving in furniture.
Is it even possible to build a single-family house or a modular house within these parameters?
Based on my online research, I find it hard to imagine at the moment.
What construction period or overall timeline should be planned starting from the land purchase?
Which companies would be worth contacting?
Thank you in advance for your answers!
Before my wife and I get in over our heads, I have a question regarding what is possible with a budget of €220,000 plus €20,000 in equity.
We are planning a single-family house in the Bremen/Lower Saxony area. The living area should be around 130 sqm (1,400 sq ft). We do not yet have a plot of land. The land costs approximately €45,000 to €55,000, excluding additional fees. The budget must cover everything, from closing the door to moving in furniture.
Is it even possible to build a single-family house or a modular house within these parameters?
Based on my online research, I find it hard to imagine at the moment.
What construction period or overall timeline should be planned starting from the land purchase?
Which companies would be worth contacting?
Thank you in advance for your answers!
nils1985 schrieb:
Isn’t it possible to reduce some costs by doing parts yourself?Only if you start making your own bricks and weaving your own insulation, maybe 😉
nils1985 schrieb:
So, one question won’t leave my mind. I earn 2,400 and the bank says I could afford $800 for the house. Somehow my approved loan feels very low.We don’t know what the banker knows. Maybe you have too many liabilities or dependents to support. There’s a big difference between a childless couple wanting to build and a family with three children, plus the father still paying alimony 😉.
And if you say: I earn... a second income might be missing for added security?!
nils1985 schrieb:
This is my income. It will increase to 2900 in 6 years. My wife currently earns 1400. However, I never know how long her full salary will last. Our equity is 20,000In this case:
a) Salary increases don’t count. Such assumptions are purely hypothetical and not relevant for financing.
b) Your wife’s income should not be considered before having children, because then it might disappear and the child will add extra expenses.
A €240,000 (approximately USD equivalent) nice condo for a young family: that is affordable, predictable, manageable and truly great—about the same cost as renting a place for 3 people. If saving works out, maybe in 10 years take the next step (second property, condo) then move on to a house? Or continue renting for now, save, then consider a row house/condo/detached house.
Thorsten
S
Steffen8028 Jan 2016 21:05nils1985 schrieb:
This is my income. It will increase to 2900 in 6 years. My wife currently earns 1400. However, I never know how long she will receive her full salary. Equity is 2000020,000 equity = 0 equity... actually, it’s even negative equity 🙂 In the end, you need more than 100% loan-to-value for the mortgage.
What happens in 6 years doesn’t matter at all. The wife earns 1400—that sounds better. But what do you mean you don’t know for how long? Because of children?
nils1985 schrieb:
I have corrected my information again....You should adjust your plans; that would be better.
No one in this forum is interested in seeing young forum members on TV in "We Have a Building Ruin" on Sunday afternoon at 5:00 PM.
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