Hello everyone!
We – that’s me, 25 years old, and my better half, also 25 – are facing the challenge of building a house.
The topic of finding the “right plot of land” was the first thing we wanted to tackle, and thanks to available options within the family circle, we have already taken care of that.
Now the focus is shifting to the actual “building” itself, and I’m starting to feel a bit overwhelmed.
One might find it funny since I work as a project manager in the family-owned road construction company – but when it comes to “building a house,” well... our expertise ends at the driveway :-)
Before we get in touch with architects or construction companies, I’d like to define the financial framework. First, I want to know what we can afford before I start making plans that might be beyond our budget.
We have scheduled an appointment with our joint bank to discuss this.
Ahead of that meeting, I would like to gather some opinions from experienced home builders – that’s you – to get a realistic idea of the total costs involved.
A quick overview of our situation:
Me, 25 years old:
My partner, 25 years old:
So, our combined net household income is €9,900 per month (approximately $10,700).
After compiling a typical household budget for the past 12 months, we currently have about €5,500 (approximately $5,900) left at the end of each month.
From October onwards, her salary will also come in, expected to be around €2,500 net per month (approximately $2,700).
My income is fairly secure because it’s from our family business – with the usual uncertainty that any company has.
Her position offers the prospect of a civil servant status (tenure).
What we want to build:
What we have:
We do not want to invest any equity beyond that.
What I am willing to spend:
I had a limit of €500,000 (approximately $540,000) in mind.
I’m happy to stay below that if possible, but I can also consider going over if necessary.
However, I have no real point of reference regarding what financial resources we should realistically expect to need here.
I would be grateful to hear in advance:
Many thanks in advance!
We – that’s me, 25 years old, and my better half, also 25 – are facing the challenge of building a house.
The topic of finding the “right plot of land” was the first thing we wanted to tackle, and thanks to available options within the family circle, we have already taken care of that.
Now the focus is shifting to the actual “building” itself, and I’m starting to feel a bit overwhelmed.
One might find it funny since I work as a project manager in the family-owned road construction company – but when it comes to “building a house,” well... our expertise ends at the driveway :-)
Before we get in touch with architects or construction companies, I’d like to define the financial framework. First, I want to know what we can afford before I start making plans that might be beyond our budget.
We have scheduled an appointment with our joint bank to discuss this.
Ahead of that meeting, I would like to gather some opinions from experienced home builders – that’s you – to get a realistic idea of the total costs involved.
A quick overview of our situation:
Me, 25 years old:
- Project manager
- €3,900 net per month (approximately $4,200) + profit sharing
My partner, 25 years old:
- Still studying in her final semester
- Owns two multi-family houses in the Alpine foothills, generating €9,000 net income per month (approximately $9,700)
- Minus €3,000 financing payments per month for ongoing renovation loans on the rental properties, resulting in a total income of €6,000 per month (approximately $6,500)
So, our combined net household income is €9,900 per month (approximately $10,700).
After compiling a typical household budget for the past 12 months, we currently have about €5,500 (approximately $5,900) left at the end of each month.
From October onwards, her salary will also come in, expected to be around €2,500 net per month (approximately $2,700).
My income is fairly secure because it’s from our family business – with the usual uncertainty that any company has.
Her position offers the prospect of a civil servant status (tenure).
What we want to build:
- Two-story house – probably with a basement
- Approximately 140m2 (1,507 sq ft)
- Brick veneer exterior
- Double garage
- City villa style
- Smart home features according to current standards
What we have:
- 1,100m2 (11,840 sq ft) fully serviced plot of land in beautiful Lower Bavaria
- Equipment and personnel to carry out all earthworks ourselves at no additional cost
We do not want to invest any equity beyond that.
What I am willing to spend:
I had a limit of €500,000 (approximately $540,000) in mind.
I’m happy to stay below that if possible, but I can also consider going over if necessary.
However, I have no real point of reference regarding what financial resources we should realistically expect to need here.
I would be grateful to hear in advance:
- How much would our planned home cost / what is a reasonable cost range?
- Is our budget sufficient?
- Where should we start – visiting model homes or going directly to an architect?
Many thanks in advance!
L
Lunestros14 Apr 2019 17:58So, more than two children are not planned :-)
We currently consider 140 m2 (1,507 sq ft) to be sufficient—at least on paper.
But of course, if the budget allows in the end... that’s definitely something we need to think about—thanks for pointing that out here :-)
We currently consider 140 m2 (1,507 sq ft) to be sufficient—at least on paper.
But of course, if the budget allows in the end... that’s definitely something we need to think about—thanks for pointing that out here :-)
Visit model homes and take a close look at everything. From glass showhouses to 120 m² (1,290 sq ft) houses.
Always draw furniture to scale. Check your clearances. It’s no use thinking that 60 cm (24 inches) between the edge of the bed and the wall is too little, then building with only 50 cm (20 inches) because it looks better.
140 m² (1,500 sq ft) is not spacious for a family of four by today’s standards. Still, it’s not a tiny house. Consider the books as well. They need space somewhere if the reading room is converted into a children’s room. Your second hobby, gaming, or ironing room may also be dissolved.
Always draw furniture to scale. Check your clearances. It’s no use thinking that 60 cm (24 inches) between the edge of the bed and the wall is too little, then building with only 50 cm (20 inches) because it looks better.
140 m² (1,500 sq ft) is not spacious for a family of four by today’s standards. Still, it’s not a tiny house. Consider the books as well. They need space somewhere if the reading room is converted into a children’s room. Your second hobby, gaming, or ironing room may also be dissolved.
140 m² (1507 sq ft) is far too small. It’s very difficult to create attractive rooms with that size. Considering your exceptionally high income and possibilities, I would recommend aiming for around 250 m² (2691 sq ft) and planning a budget of about 1 million euros for the house.
Otherwise, you’ll have it paid off after just 5 years anyway 😀
Otherwise, you’ll have it paid off after just 5 years anyway 😀