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
Kekse schrieb:
just to ask plainly – when the time comes, are you the only heirs? No, we are not. However, we would of course want the inheritance of the shared house to be arranged so that we are the sole heirs. Basically, this would be in return for the care to be provided if necessary.
Nordlys schrieb:
But no daydreaming. First the plot.I still disagree. First, determine your financial framework to see if the project is even realistic. Living solely on plots is quite difficult.
Caspar2020 schrieb:
Maybe estimate closer to €2000 per square meter...I deliberately chose €1800, as standard and in Schleswig-Holstein.
thehax schrieb:
I was surprised that the idea of grandpa contributing financially got so little positive feedback. He is still working, has rental income, and a considerable civil servant pension prospect.There is only one scenario where grandpa is helpful: if he gives you money as an unconditional gift.
Often people here think the situation improves if a mother-in-law, grandpa, or someone else moves in because they have cash. Usually, it turns out that the older generation (and the builder) have no real understanding of current construction costs. Then €100,000 is promised, but a 100 square meter (1076 square feet) granny flat would have to be built for that. Yeah, right. Even if it were only 50 square meters (538 square feet), it would at best be a break-even situation for the builder. Rental income is subject to taxes and—even with grandpa—is not a guaranteed solid income.
Let grandpa build the place and you rent from him, do a rent-to-own, or just inherit the house (if you are the sole heir) 🙂
But no matter how you look at it, potential co-heirs will want a say.
thehax schrieb:
Is he irrelevant for financing despite all this (other than possibly contributing equity)?As I said, if he gifts you money, that’s good. Otherwise, he could join the financing as a guarantor based on his income. But think carefully whether you really want that as an adult. It doesn’t improve your loan terms and doesn’t help with repayment. That only matters if the bank thinks your monthly payment doesn’t match your income.
C
Caspar20203 Sep 2018 21:25thehax schrieb:
I was surprised that the idea of the grandfather contributing financially didn’t receive much support.If it doesn’t result in a substantial amount of personal equity (100,000–200,000 euros (110,000–220,000 USD)), it’s basically a zero-sum game—unless you’re willing to pay extra out of pocket.
The reason is simple: the cost per square meter is still about 1,800 euros (1,970 USD). A decent granny flat should be around 50–60 square meters (540–645 square feet). So, that’s roughly 90,000–106,000 euros (99,000–116,000 USD) gone, possibly even more if the plot needs to be larger.
The only advantage might be better conditions from the bank, thanks to a higher loan-to-value ratio.
But you won’t really get more or make the project more affordable overall.
If you can’t provide that much personal equity (less than 100,000 euros (110,000 USD)), I wouldn’t even bother with the hassle.
I also consider Grandpa to be a weak link. And since I am a grandpa myself, I would always advise your grandpa against doing that. §1 Everyone has their own. Young and old should enjoy meeting, but they shouldn’t be too close together. A tall hedge between us and you wouldn’t hurt at all.
thehax schrieb:
Sozusagen im Gegenzug für die zu leistende Pflege im Falle des Falles. Really bad idea. Imagine grandpa is (in excellent health) suddenly involved in a car accident or another unexpected event that doesn’t require care. Then you not only have a huge burden with the granny flat but also an inheritance dispute on your hands.
H
HausbauTiNa3 Sep 2018 23:41To put it simply:
From the bank’s perspective, a grandfather in his late 50s no longer represents a reliable security.
Additionally, inheritance is not taken into account as it is speculative. The grandfather might also become so dependent on care that he can no longer be cared for at home. In that case, he would have to use up his assets for the care.
From the bank’s perspective, a grandfather in his late 50s no longer represents a reliable security.
Additionally, inheritance is not taken into account as it is speculative. The grandfather might also become so dependent on care that he can no longer be cared for at home. In that case, he would have to use up his assets for the care.
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