ᐅ Building a Home – Getting Started Can Be Challenging – How Do You Begin?
Created on: 2 Sep 2018 17:59
T
thehax
Hello home builders,
We are a family of five (+1) from the far north, currently just starting our journey toward owning our own home. The desire is clear. Now, it’s about exploring our options, finding the right path, and trying to avoid as many potholes and dead ends along the way as possible.
Since we are complete beginners, we appreciate any advice that helps us feel more confident and welcome any questions we should be asking to move forward.
Our family consists of my wife (34), our children (6, 9, 13), and me as the father and primary earner (36). A possible sixth household member is my father (59), with whom we are considering a multigenerational house including a separate apartment.
I hope to find experience reports, tips, and guidance on the steps ahead here, as well as encounter questions we haven’t thought of yet.
How did you start your journey? How did you move from the idea to taking action? What triggered your decision, and why did you ultimately decide the way you did?
Looking forward to your responses.
Best regards,
Alex
We are a family of five (+1) from the far north, currently just starting our journey toward owning our own home. The desire is clear. Now, it’s about exploring our options, finding the right path, and trying to avoid as many potholes and dead ends along the way as possible.
Since we are complete beginners, we appreciate any advice that helps us feel more confident and welcome any questions we should be asking to move forward.
Our family consists of my wife (34), our children (6, 9, 13), and me as the father and primary earner (36). A possible sixth household member is my father (59), with whom we are considering a multigenerational house including a separate apartment.
I hope to find experience reports, tips, and guidance on the steps ahead here, as well as encounter questions we haven’t thought of yet.
How did you start your journey? How did you move from the idea to taking action? What triggered your decision, and why did you ultimately decide the way you did?
Looking forward to your responses.
Best regards,
Alex
C
Caspar20203 Sep 2018 14:38thehax schrieb:
In the case with a granny flat, we can expect about €1900 / month. Without the granny flat, it would be closer to €1100 / month. These amounts are just rough estimates based on the rent currently being paid and what would additionally be possible monthly. Are there any specific methods to get closer to these values?Um, rent is not the same as financing options. A house requires more than just the ancillary costs for operation. Simply put, loan payments + additional costs + reserves for maintenance/repairs.
Per square meter you can estimate about €1-1.5 for additional costs, plus another €1 for reserves.
thehax schrieb:
GreenfieldThat term comes from IT....thehax schrieb:
We are currently just starting to build up equity. It also depends on whether we approach this on our own or together (granny flat yes/no).So that means anywhere between zero and a little? No building society loan? Or how much could grandpa contribute.---
- I would first check how much land costs per square meter in your area.
- At the same time, pressure your main bank, local bank, or a broker on what is really possible within your budget.
- Keep a household budget.
Those are good first steps.
For the house itself...
Alex85 schrieb:
From the budget, deduct €30,000 for additional construction costs, €15,000 for the bare minimum landscaping, and possibly money for furniture, e.g. €10,000 for the kitchen. What remains, divide by €1800 to get the size of the house with standard features.Maybe use €2000 per square meter instead...H
HausbauTiNa3 Sep 2018 16:13Very roughly:
€110,000 (about $120,000) equals a €300,000 (about $330,000) loan
Land, if inexpensive, €50,000 (about $55,000)
Additional purchase costs: €5,000 (about $5,500)
Utility connections: €15,000 (about $16,500)
Outdoor area landscaping: €15,000 (about $16,500)
Incidental building costs: €25,000 (about $27,500)
Kitchen: €10,000 (about $11,000)
Painting, flooring, etc.: €5,000 (about $5,500)
Contingency fund: €10,000 (about $11,000)
That already totals €135,000 (about $148,500).
With zero equity, you still have €165,000 (about $181,500) left.
You won’t get a realistic house for that.
€110,000 (about $120,000) equals a €300,000 (about $330,000) loan
Land, if inexpensive, €50,000 (about $55,000)
Additional purchase costs: €5,000 (about $5,500)
Utility connections: €15,000 (about $16,500)
Outdoor area landscaping: €15,000 (about $16,500)
Incidental building costs: €25,000 (about $27,500)
Kitchen: €10,000 (about $11,000)
Painting, flooring, etc.: €5,000 (about $5,500)
Contingency fund: €10,000 (about $11,000)
That already totals €135,000 (about $148,500).
With zero equity, you still have €165,000 (about $181,500) left.
You won’t get a realistic house for that.
That’s quite a lot of additional input. I will gather the constructive criticism from this for myself.
I was surprised that the possibility of Grandpa contributing financially received so little attention. He is still working at the moment, has rental income, and can expect a considerable civil service pension.
Is he irrelevant for financing despite all this (apart from any equity he may contribute)?
- First, I understand that we should save as much equity as possible initially (tax refunds into a savings account, maximizing monthly surplus and transferring it to savings, finding a part-time job for my wife, etc.). I’ve already been keeping a household budget for years.
- Next, we should research the prices of plots of land. I will contact the municipalities that are suitable for us and see how that goes.
- And schedule an appointment with one or more real estate financial advisors or our bank to explore the available options.
I was surprised that the possibility of Grandpa contributing financially received so little attention. He is still working at the moment, has rental income, and can expect a considerable civil service pension.
Is he irrelevant for financing despite all this (apart from any equity he may contribute)?
thehax schrieb:
I was surprised that the idea of Grandpa contributing financially was met with so little interest. He is still working himself at the moment, also has rental income, and can expect a considerable civil servant pension.
Is he irrelevant for financing despite all this (aside from any equity he might contribute)? Grandpa as a financially secure tenant is almost irrelevant. That means if he only guarantees that you can make the repayments, it doesn’t count. As a significant factor, Grandpa must be included among the borrowers as well. Maybe there was a misunderstanding between you on this point?
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11ant schrieb:
As an additional factor, grandpa must be included among the borrowers as well. Okay, yes, that was planned as an option with the granny flat.