Hello everyone,
Since I started exploring the topic of house construction two months ago, I have now registered on this forum.
A brief introduction about me and my wife: We are both employed (civil engineer and real estate assistant) with a net income of 4xxx.
Equity capital: 50,000 euros.
One would actually assume that with this equity and net income, buying a property should be easy. However, since I do not want to repay a loan over 30-35 years but rather a maximum of 25 years, and I don’t want to fully stretch the limit, the monthly installment and therefore the total amount quickly become restricted. A total of 250,000 net plus additional construction costs equivalent to the equity capital would be the limit here. In Berlin and its surrounding area? Practically unthinkable.
I am a civil engineer (although specializing in concrete repair and thus not an expert in single-family houses, etc.) and can therefore assess construction prices, combined with my wife’s interest in the real estate sector, allowing us to understand the high general prices for land.
With 250,000 net plus additional construction costs, there is generally not much you can do nationwide for new builds — this is my initial assessment.
There has already been a lot of discussion here in other threads about construction costs, potential capital, and what is needed. When I see bargain houses on TV, I also facepalm. My assumption is that such homes don’t bring much joy. Heating systems, plumbing, electrical installations, thermal insulation — these are often overestimated.
Currently, I am researching prefabricated houses with self-finishing options. However, I do have some concerns, even though I assume that nowadays the materials at least meet certain standards.
So, what are the options?
Being bound for 30 years and pushing the loan to the limit?
House auctions?
Hoping for a bargain plot including an affordable prefab house as a self-build (lots of work and potentially many worries)
Since I plan to start building within the next 24-36 months, my initial findings are sobering.
At least the construction company I work for could provide the foundation slab plus groundwork like drainage, etc., at a low cost. I also know structural engineers and others involved. Maybe the project can be realized with a “small” budget thanks to these circumstances.
Has anyone managed to do this before?
Since I started exploring the topic of house construction two months ago, I have now registered on this forum.
A brief introduction about me and my wife: We are both employed (civil engineer and real estate assistant) with a net income of 4xxx.
Equity capital: 50,000 euros.
One would actually assume that with this equity and net income, buying a property should be easy. However, since I do not want to repay a loan over 30-35 years but rather a maximum of 25 years, and I don’t want to fully stretch the limit, the monthly installment and therefore the total amount quickly become restricted. A total of 250,000 net plus additional construction costs equivalent to the equity capital would be the limit here. In Berlin and its surrounding area? Practically unthinkable.
I am a civil engineer (although specializing in concrete repair and thus not an expert in single-family houses, etc.) and can therefore assess construction prices, combined with my wife’s interest in the real estate sector, allowing us to understand the high general prices for land.
With 250,000 net plus additional construction costs, there is generally not much you can do nationwide for new builds — this is my initial assessment.
There has already been a lot of discussion here in other threads about construction costs, potential capital, and what is needed. When I see bargain houses on TV, I also facepalm. My assumption is that such homes don’t bring much joy. Heating systems, plumbing, electrical installations, thermal insulation — these are often overestimated.
Currently, I am researching prefabricated houses with self-finishing options. However, I do have some concerns, even though I assume that nowadays the materials at least meet certain standards.
So, what are the options?
Being bound for 30 years and pushing the loan to the limit?
House auctions?
Hoping for a bargain plot including an affordable prefab house as a self-build (lots of work and potentially many worries)
Since I plan to start building within the next 24-36 months, my initial findings are sobering.
At least the construction company I work for could provide the foundation slab plus groundwork like drainage, etc., at a low cost. I also know structural engineers and others involved. Maybe the project can be realized with a “small” budget thanks to these circumstances.
Has anyone managed to do this before?
N
nordanney12 Jun 2019 22:04Berlin85 schrieb:
However, since I do not want to repay a loan over 30-35 years but a maximum of 25 years, and I also do not want to fully stretch the limit, the monthly installment and therefore the total amount quickly become limited. €250,000 net plus ancillary building costs equivalent to the amount of equity would be the limit here.How are you calculating this? How old are you? What are your needs? Family planning? Why must the loan be paid off in 25 years? Why not use the full credit limit? Income and expense calculation? Any other liabilities?With a net income of around €4,000 you should definitely be able to afford a monthly payment of €1,500 — what do your finances say? At a 4% annuity rate, for example, you could finance €450,000. Is that monthly payment too high?
You need to share much more about your situation for you to receive sensible advice.
H
HilfeHilfe12 Jun 2019 22:06My neighbor, a general contractor, told me, "The building envelope is basically the same everywhere; the expensive part is the land." That’s the dilemma. I think you won’t be able to afford a new build for $300k (250k plus $50k own equity), not even by using cheaper trades.
N
nordanney12 Jun 2019 22:18HilfeHilfe schrieb:
I think with 300k (250k plus 50k equity) you won’t be able to afford a new build. And if you do, it would be a house similar to a typical German row house in an area with a land value of 200-300€ per square meter. That would be feasible.Berlin85 schrieb:
However, I don’t want to repay a loan over 30–35 years, but a maximum of 25 years, And why this restriction? Because you tend to be a bit of a pessimist?
Berlin85 schrieb:
When I see example bargain homes on TV, I also feel like throwing my hands up in disbelief. Berlin85 schrieb:
My assumption is that people don’t really enjoy living in a house like that. I believe more of them are happier with their own place than some of us who can’t immediately afford smart home systems like KNX, but are gradually upgrading.
There are many paths to your goal, so to speak, including a stylish terraced house or a pre-owned property.
And you still have some time to observe what’s available on the market. After all, your shell construction home will also require a plot of land.