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
K
Knallkörper17 Oct 2017 19:10I agree with Nordlys on this. Additionally, investing in forest land is still worth considering and can be a very good long-term investment if you have the knowledge and can wait 30 years or buy it for your children.
Consider how the two large religious organizations, which have lasted for centuries or even millennia, manage their assets. I am referring to the two churches. They have survived countless wars, disasters, currency changes, inflation, and pandemics! They consolidate their wealth in land that they manage themselves, such as monasteries, or lease it out. They grant long-term leases to home builders.
Karsten
Karsten
So, we bought an apartment five years ago and started building this year.
Would I do it again? Yes and no.
The apartment was kind of a quick decision. We got it at a good price; today, it’s probably worth over 100,000 more. Still, it didn’t make us happy. The homeowners’ association, annoying neighbors, and so on.
Build a house again? As of now, yes... so far, we’ve only had minor issues. It’s actually been quite enjoyable.
So far, I would just do more of the work myself [emoji4]
Would I do it again? Yes and no.
The apartment was kind of a quick decision. We got it at a good price; today, it’s probably worth over 100,000 more. Still, it didn’t make us happy. The homeowners’ association, annoying neighbors, and so on.
Build a house again? As of now, yes... so far, we’ve only had minor issues. It’s actually been quite enjoyable.
So far, I would just do more of the work myself [emoji4]
Marvinius II17 Oct 2017 20:35Steffen80 schrieb:
I would completely agree with that!!! Most home builders deceive themselves, especially when it comes to building wealth!I would rather lose 50% of the value of a house where I can live independently than lose 50% on some stocks....
Winniefred18 Oct 2017 11:01We bought a small older house and renovated most of it ourselves. It was exhausting but also rewarding. We have only recently moved in, but we really like it and would do it again. It costs us just 200€ (about $215) more than our previous rent. The children have space, we have a great garden, and we no longer depend on anyone or have to be very considerate. We have a house in a prime location, and its value will surely have doubled in 10 years. We also have great neighbors. Still, compromises have to be made. Nothing is without its downsides. More work, more costs, and so on.
C
chand198618 Oct 2017 11:15stefanc84 schrieb:
You can’t just keep turning more and more land into building land without consideration – at least, as a friend of untouched nature, I would be against doing that.We were talking about farmland. Besides, I implicitly agreed with you regarding building land when I wrote the following:
chand1986 schrieb:
The value of land is not due to its scarcity, but because of its location.Continuing with Karsten
Nordlys schrieb:
Apparently, you don’t know much about farmland… The price per hectare has increased by about one third over the last 10 years with more than 50 soil points. Land has value not only for building but also for development. It’s true, that’s how it is. K.I would have to reply that this doesn’t match what I was trying to say. I was referring to wealth building through the exponential effects of interest and compound interest, or reinvested earnings. With farmland, what do you reinvest? Nothing.
Otherwise, 35% over 10 years is exactly 3% per year when calculated exponentially backward. Minus inflation on top of that. That’s certainly value-retaining, but compared to what I was talking about, it’s not impressive in terms of growth.
I found the following somewhat cynical and it annoyed me:
Nordlys schrieb:
Think about how the two major organizations that have lasted for centuries, even millennia, invest their wealth. I mean the two churches. How many wars, disasters, currency collapses, inflation waves, plagues they have endured! By consolidating their wealth in land that they manage themselves, in monasteries, by leasing it out, granting long-term leases to house builders. KarstenThe land survived so many wars because it was actually seized by the churches during these very same wars. Either directly, or indirectly through money stolen, or through the sale of indulgences, which was also, more or less, about money. Of course, those who could make laws a few hundred years ago could legalize any atrocity. And if time passes and no one questions it anymore? Seems so... I can’t accept that as an argument. They also had to build up wealth first before they became land occupiers… uh – owners. That was my point. I find my approach more humane!
(I find it strange anyway that this example comes from you, when I would have placed you more in the liberal camp!?)
Marvinius II schrieb:
I’d rather lose 50% of the value of a house, where I can live independently, than lose 50% with some stocks…I completely agree. If anything, I’d rather do it that way. Though, no one goes in expecting to lose.
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