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?
Berlin85 schrieb:
A brief introduction about me and my wife: Both working professionals (civil engineer and real estate assistant) with a net income of 4xxx. @Berlin85: What exactly does your wife do as a real estate assistant? Does she have insights or contacts to help find something affordable?
Berlin85 schrieb:
I was actually hoping to find a SERIOUS forum with SERIOUS answers.
When I quickly read through them now, I was a bit shocked...... You received feedback on 9 pages in the forum within one day. That’s unusual. Of course, there is some nonsense included, but it shows that there is significant interest in your topic.
If you address a few points and answer follow-up questions, we’ll all be back on track.
Tassimat schrieb:
You received feedback on 9 pages in the forum within one day. That is rare. Obviously, some of it is nonsense, but it shows there is interest in your topic after all.
If you address a few points and answer questions, we'll be back on track.I am also surprised by the number.
Tomorrow, I hope to continue with a serious response from me.
Good night to everyone.
Berlin85 schrieb:
Tomorrow I will hopefully continue with a serious answer from meAnd plenty of drip coffee... You should filter your answersface26 schrieb:
If you can’t handle the loan figures, then you just have to let it go.
Nowadays, it almost seems like our society is scared of everything. Hello,
I don’t believe that those who decide not to build a house because the loan amount is too high are simply scared.
The real question, which everyone has to answer for themselves, is clear: Am I willing to effectively rent from the bank for decades (usually 25 to 35 years) and give up freedom, vacations, and the good feeling of owing nothing to anyone?
Just because the monthly payment looks manageable in 20 years doesn’t mean the house no longer costs me anything. Think about renovation, maintenance, and you also need to be physically capable of taking care of it.
The fact is: A house that is almost 100 percent financed is not just about the monthly payment. You are in a phase of life (let’s say from 30 to 60 years old) when you are mentally and physically fit, you want to live, travel, try new things, pursue hobbies — yet you are tied to someone who demands between 1200 and 1800 Euros every month. And always. Every month until retirement.
With a rental apartment, you also pay monthly, but there is usually a three-month notice period and you can find something cheaper (or move abroad entirely). Try telling that to a bank that still expects 300,000 Euros from you.
This has nothing to do with being scared; it’s just common sense telling you that having to pay 1800 Euros every month for the next 30 years is not ideal for a self-determined life.
This is, of course, not aimed against homeowners or people who build houses, but generally at those who want to fully finance and have to calculate a hundred times to see if it really can work.
We also earn around 5,000 Euros per month and still don’t want to borrow money from the bank for a house. I’d rather pay 1,000 Euros rent and enjoy life.
And at 60, you can always buy property with what you’ve saved.
And one more thing: not everyone has to build or buy a house. As someone mentioned earlier, it’s a luxury for those who can afford it.
H
HilfeHilfe14 Jun 2019 07:05Berlin85 schrieb:
Good evening everyone.
I just got home and unfortunately can’t respond in detail right now.
I was actually hoping to find a SERIOUS forum with SERIOUS answers.
After quickly reading through the responses, I was somewhat shocked... I’m curious what you consider serious. Probably just the answers that confirm your expectations and tell you you can get a house for very little money.
There are experienced users here, some from the construction industry, others from finance. But there are also users who, like you, searched extensively and then carefully carried out their projects.
Yes, the market is overheated, and yes, nothing is handed out for free. There is no low-budget option when building.