ᐅ Compromises in the Property Location and Initial Questions
Created on: 8 Dec 2016 10:24
W
Winniefred
Hello!
I’m new here. I work part-time, and my husband is a full-time IT professional. We have two small children and are both still under 30.
For some time now, we have been considering building a house. Our bank has calculated a possible loan amount of €210,000. We want to keep our monthly payments to a maximum of €1,200 so we can still enjoy a good quality of life, and we want to fully repay the loan in no more than 15 years. We worked with the bank using very conservative assumptions (only one income, no salary increases, etc.) so that we could finance it with peace of mind.
However, in our city, houses like the one we want now cost around €400,000. We’re looking for a house with about 100-140m2 (1,076-1,506 square feet) of living space on a plot no larger than 700m2 (7,535 square feet). We want something modest and standard, with no special demands. Property prices in the city, even on the outskirts, have skyrocketed. Properties under €350,000 usually require extensive renovation, which pushes the total cost back up to €400,000 or more. That sum is simply too high and risky for us. Paying off over 30 years or sacrificing our lifestyle for 20-25 years is not an option. Condominiums aren’t much cheaper either—those typically still cost around €350,000, with no upper limit. In short: everything we can afford is further away than we would like.
My husband’s parents own a plot in a suburb that we could have. On that land, we could build our dream bungalow with our budget of €210,000, including landscaping (at least the paving and a carport; the rest of the yard is fine). The plot is just under 700m2 (7,535 square feet), well-shaped, fully developed with utilities, fenced, and flat. With this plot plus our savings, we would have substantial equity (over 40%) and could finance everything comfortably without stress. We know the area and the neighbors well; my husband grew up there, and we’ve lived there before. There is access to tram, bus, and commuter trains, plus full infrastructure like doctors and schools. The drawback is that it’s 17 kilometers (about 11 miles) from our main city. It’s a nice place, friendly, but it’s simply not “our” city, the one we love. In our city, however, we simply cannot afford anything under our self-imposed conditions. Objectively, nothing speaks against this small town: you can get to the main station in the big city within 15 minutes by commuter train, and a large shopping center is just 10 minutes away.
Have any of you made compromises regarding location? The difference is quite significant. Especially for us, since the plot is already available and wouldn’t need to be purchased for about €130,000 as a similar plot would on the outskirts of the city. And then it would be our dream home, not some awkwardly laid-out second-hand semi-detached house. But is it still reasonable to buy at all? Or would it be better just to remain renters and stay in the city we love? Our current rent is €1,000 all-inclusive, which is actually a bargain for a 102m2 (1,098 square feet) apartment in a nicely renovated older building on the city outskirts. The suburb would be another 10 kilometers (6 miles) further out...
City properties here sell very quickly. There’s no room for negotiation. But once you go to the suburbs or outskirts, prices can be really low.
So as you can see, we’re going in circles. On one hand, we want to own a home. This isn’t driven by fear of rising interest rates—that has always been our wish. On the other hand, we’re afraid to regret compromising on location. But we also don’t want to buy seriously overpriced property that we’d have to pay off for decades. Even if we relaxed our repayment goals, factoring in extra payments, pay raises, and extending the loan term to 20 years, it wouldn’t get us a loan amount of €400,000. Maybe €300,000 to €350,000 max, which would only cover a condominium.
Maybe you have some suggestions or could share your experiences and thoughts.
Thanks!
I’m new here. I work part-time, and my husband is a full-time IT professional. We have two small children and are both still under 30.
For some time now, we have been considering building a house. Our bank has calculated a possible loan amount of €210,000. We want to keep our monthly payments to a maximum of €1,200 so we can still enjoy a good quality of life, and we want to fully repay the loan in no more than 15 years. We worked with the bank using very conservative assumptions (only one income, no salary increases, etc.) so that we could finance it with peace of mind.
However, in our city, houses like the one we want now cost around €400,000. We’re looking for a house with about 100-140m2 (1,076-1,506 square feet) of living space on a plot no larger than 700m2 (7,535 square feet). We want something modest and standard, with no special demands. Property prices in the city, even on the outskirts, have skyrocketed. Properties under €350,000 usually require extensive renovation, which pushes the total cost back up to €400,000 or more. That sum is simply too high and risky for us. Paying off over 30 years or sacrificing our lifestyle for 20-25 years is not an option. Condominiums aren’t much cheaper either—those typically still cost around €350,000, with no upper limit. In short: everything we can afford is further away than we would like.
My husband’s parents own a plot in a suburb that we could have. On that land, we could build our dream bungalow with our budget of €210,000, including landscaping (at least the paving and a carport; the rest of the yard is fine). The plot is just under 700m2 (7,535 square feet), well-shaped, fully developed with utilities, fenced, and flat. With this plot plus our savings, we would have substantial equity (over 40%) and could finance everything comfortably without stress. We know the area and the neighbors well; my husband grew up there, and we’ve lived there before. There is access to tram, bus, and commuter trains, plus full infrastructure like doctors and schools. The drawback is that it’s 17 kilometers (about 11 miles) from our main city. It’s a nice place, friendly, but it’s simply not “our” city, the one we love. In our city, however, we simply cannot afford anything under our self-imposed conditions. Objectively, nothing speaks against this small town: you can get to the main station in the big city within 15 minutes by commuter train, and a large shopping center is just 10 minutes away.
Have any of you made compromises regarding location? The difference is quite significant. Especially for us, since the plot is already available and wouldn’t need to be purchased for about €130,000 as a similar plot would on the outskirts of the city. And then it would be our dream home, not some awkwardly laid-out second-hand semi-detached house. But is it still reasonable to buy at all? Or would it be better just to remain renters and stay in the city we love? Our current rent is €1,000 all-inclusive, which is actually a bargain for a 102m2 (1,098 square feet) apartment in a nicely renovated older building on the city outskirts. The suburb would be another 10 kilometers (6 miles) further out...
City properties here sell very quickly. There’s no room for negotiation. But once you go to the suburbs or outskirts, prices can be really low.
So as you can see, we’re going in circles. On one hand, we want to own a home. This isn’t driven by fear of rising interest rates—that has always been our wish. On the other hand, we’re afraid to regret compromising on location. But we also don’t want to buy seriously overpriced property that we’d have to pay off for decades. Even if we relaxed our repayment goals, factoring in extra payments, pay raises, and extending the loan term to 20 years, it wouldn’t get us a loan amount of €400,000. Maybe €300,000 to €350,000 max, which would only cover a condominium.
Maybe you have some suggestions or could share your experiences and thoughts.
Thanks!
You don’t need to justify yourself!
But one thing caught my attention in your question, or rather this "That’s where I want to be" feeling.
In our case, and I think for most people who build or plan to build a house, it’s not first about choosing the place and then looking for a plot or house there.
It’s usually the other way around: the desire to own something of your own. Then you look for available plots that are convenient for commuting to work, price plays a very important role, and only after that comes the question: can we get comfortable with the new location, is this place right for us, etc. Infrastructure, public transport, connections, distance to theaters, cinemas, and so on. When searching for a long time, people make small compromises for themselves simply because of the strong wish to own a house.
I don’t know anyone who willingly and openly leaves their old home. New territory, even if it’s still in the same region, feels foreign and uncertain at first, so people tend to avoid the experience of moving if they can.
But as I said above: if I were in your position, I would stay where you are and feel comfortable.
Best regards
But one thing caught my attention in your question, or rather this "That’s where I want to be" feeling.
In our case, and I think for most people who build or plan to build a house, it’s not first about choosing the place and then looking for a plot or house there.
It’s usually the other way around: the desire to own something of your own. Then you look for available plots that are convenient for commuting to work, price plays a very important role, and only after that comes the question: can we get comfortable with the new location, is this place right for us, etc. Infrastructure, public transport, connections, distance to theaters, cinemas, and so on. When searching for a long time, people make small compromises for themselves simply because of the strong wish to own a house.
I don’t know anyone who willingly and openly leaves their old home. New territory, even if it’s still in the same region, feels foreign and uncertain at first, so people tend to avoid the experience of moving if they can.
But as I said above: if I were in your position, I would stay where you are and feel comfortable.
Best regards
B
Bieber081512 Dec 2016 23:23Winniefred schrieb:
Oh dear... I hope people understand a bit of what I mean. I think this is not about city, small town, or countryside, but about your preferred location.ypg schrieb:
It’s the other way around: the desire for something of your own. Then you look where land plots are available, Yes!! That’s exactly it. There are definitely no building plots left by Binnenalster, nor at Lake Starnberg. Just saying. We let about 2 years pass... Not searching very actively, but from the desire for a home to signing the contract. There were certainly other factors, but one key factor was and is the location.My conclusion: No compromises on location! But priority 1 is having your own home. Location is priority 2. Everything else follows. The boundary conditions are money, money, money, and of course the wishes of the partner(s) :P.
C
Caspar202013 Dec 2016 06:45Our little one is now 4.5 years old.
Three years ago, we started looking into buying a home. Over time, our search area gradually shrank. The reasons were that our child had settled into their place at kindergarten, we got a proper new swimming pool, and overall, the location was ideal for us. Including a train station that allows very quick access to Cologne.
The problem is that this district is very restrictive about new residential developments (the farmers apparently don’t see any reason to sell their fields right now). In the main town, however, and in neighboring communities (some of which belong to a different administrative district), large areas are being designated and marketed for housing, sometimes for 150 to 200 households.
In the end, we couldn’t really get excited about any of these areas because, from our perspective, the locations always represented a downgrade.
So about two years ago, we started looking at the secondary market. After reviewing about 30 listings and visiting 15 properties, I felt like the owner of a renovation company. There were some nice options in terms of location, but often with a backlog of modernization that could lead to many surprises. Financially (also due to timing uncertainties), this was an adventure we couldn’t really warm up to.
About a month ago, a condominium appeared on our radar unexpectedly (less than 250m (275 yards) from where we currently live).
Well, if everything goes well, it will soon be ours. The ink still needs to dry at the notary.
Location, location, location 😎
Three years ago, we started looking into buying a home. Over time, our search area gradually shrank. The reasons were that our child had settled into their place at kindergarten, we got a proper new swimming pool, and overall, the location was ideal for us. Including a train station that allows very quick access to Cologne.
The problem is that this district is very restrictive about new residential developments (the farmers apparently don’t see any reason to sell their fields right now). In the main town, however, and in neighboring communities (some of which belong to a different administrative district), large areas are being designated and marketed for housing, sometimes for 150 to 200 households.
In the end, we couldn’t really get excited about any of these areas because, from our perspective, the locations always represented a downgrade.
So about two years ago, we started looking at the secondary market. After reviewing about 30 listings and visiting 15 properties, I felt like the owner of a renovation company. There were some nice options in terms of location, but often with a backlog of modernization that could lead to many surprises. Financially (also due to timing uncertainties), this was an adventure we couldn’t really warm up to.
About a month ago, a condominium appeared on our radar unexpectedly (less than 250m (275 yards) from where we currently live).
Well, if everything goes well, it will soon be ours. The ink still needs to dry at the notary.
Location, location, location 😎
Winniefred13 Dec 2016 10:58So our top priority is the location, followed closely by the home itself. Maybe both actually share the number one spot. We don’t want one without the other. If it were just about the house, we would simply buy or build an affordable one in the suburbs.
We could also consider an existing property. We wouldn’t have any issues with a terraced house as long as the neighbors aren’t too close. However, we would lean more toward a semi-detached house or a terraced end house. Detached houses are rare and, of course, far too expensive. A condominium would also be possible for us if it had a small garden area and was in a building with only a few tenants. But as mentioned, such apartments are very expensive as well. In that case, we might as well buy a semi-detached house on the city outskirts. Just recently, we inquired about a terraced mid-terrace house that was quite affordable but rather small with little land. We actually liked it. Well, it was listed on Saturday and already gone today... we didn’t even get a chance to see it. I think we need to be more proactive and, if necessary, be a bit pushy with the real estate agent, even on Saturdays.
Unfortunately, high renovation needs are almost always the case when the houses are “cheap” (under 350,000 euro). We have already renovated two apartments and have a good sense of what needs to be done, how long it takes, and what it costs.
Changing kindergartens wouldn’t sit well with me either. As I said, we currently have a lovely small kindergarten that we are very happy with. Taking our children out of there would not be what we want, and besides, it’s very doubtful whether you could secure two spaces elsewhere at the same time. That alone is pretty unrealistic and strongly argues against moving to a different area.
There is a house being renovated near the kindergarten... I always keep an eye out to see if any condominiums might still be for sale^^
Yesterday I reviewed everything once again with my husband, and we are 90% decided not to take the plot of land in the suburb but to continue our search in the city. If necessary, to buy a fixer-upper and renovate it ourselves. Or a condominium if we can afford it.
We could also consider an existing property. We wouldn’t have any issues with a terraced house as long as the neighbors aren’t too close. However, we would lean more toward a semi-detached house or a terraced end house. Detached houses are rare and, of course, far too expensive. A condominium would also be possible for us if it had a small garden area and was in a building with only a few tenants. But as mentioned, such apartments are very expensive as well. In that case, we might as well buy a semi-detached house on the city outskirts. Just recently, we inquired about a terraced mid-terrace house that was quite affordable but rather small with little land. We actually liked it. Well, it was listed on Saturday and already gone today... we didn’t even get a chance to see it. I think we need to be more proactive and, if necessary, be a bit pushy with the real estate agent, even on Saturdays.
Unfortunately, high renovation needs are almost always the case when the houses are “cheap” (under 350,000 euro). We have already renovated two apartments and have a good sense of what needs to be done, how long it takes, and what it costs.
Changing kindergartens wouldn’t sit well with me either. As I said, we currently have a lovely small kindergarten that we are very happy with. Taking our children out of there would not be what we want, and besides, it’s very doubtful whether you could secure two spaces elsewhere at the same time. That alone is pretty unrealistic and strongly argues against moving to a different area.
There is a house being renovated near the kindergarten... I always keep an eye out to see if any condominiums might still be for sale^^
Yesterday I reviewed everything once again with my husband, and we are 90% decided not to take the plot of land in the suburb but to continue our search in the city. If necessary, to buy a fixer-upper and renovate it ourselves. Or a condominium if we can afford it.
C
Caspar202013 Dec 2016 11:03Winniefred schrieb:
Realtors can be annoying even on SaturdaysRealtors also work on Sundays. Just call them directly. Don’t be shy.
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