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?
Bardamu schrieb:
Building affordably is definitely possible.
A good friend built a house for his sister and her child. Including the land, additional costs, exterior landscaping, and 200 square meters (2,150 square feet) of living space, they completed it for 230,000 euros.
However, at this price, you really have to do a lot yourself. Starting with the earthworks, sewer connection, with two masons and three volunteer helpers from the friend circle during the shell construction, unloading bricks with a loader yourself (which costs quite a bit per lift if you don’t do it yourself), exterior and interior plastering done by only two plasterers and again two or three helpers, roofing done yourself, discounts on windows and doors thanks to good connections… and so on.
Exactly!
As I mentioned, I am a civil engineer working as a construction manager in a building company.
I have a network of suppliers, a structural engineer, and so on. I can have pipe materials, earthworks, and the foundation slab all carried out through the company at favorable prices without VAT.
Additionally, 140 skilled workers are employed by the company. This includes everything from pipe fitters and painters to stonemasons.
Tassimat schrieb:
Yes, but what about all the additional costs, such as incidental building expenses, upgrades, garden, garage, etc.? That doesn’t add up. Do you even know what the term "turnkey" actually means? Look at the existing houses you can get for 250,000€ (approx. $270,000). Does that match your dream home? If yes: problem solved
You can approach it from two angles: What can I afford, and what do I want.
Your financial situation is – sorry for the bluntness – very weak if you expect a declining salary and voluntarily provide family support. There really won’t be anything left, and I understand why you want to stay under 250,000€ (approx. $270,000).
The post does not reflect what I meant at all... and please also consider the beginning again: 250,000 PLUS incidental building costs.
Garage: I just park on the street for now. I have been doing that for 16 years.
Garden: Does it cost 20,000€ (approx. $21,500)?
Is it wrong to support one’s family when your own mother is living in old-age poverty? That is a despicable statement from you!
I am NOT expecting a declining salary, but a reduced household income due to having children and my wife working part-time. Please read more carefully and express yourself more precisely.
Berlin85 schrieb:
Yes, exactly!Now this is getting a bit childish.
Berlin85 schrieb:
without value-added taxWithout value-added tax is not legal and amounts to tax evasion! I do not participate in such invoices.
Berlin85 schrieb:
I mentioned that I am a civil engineer working as a construction manager in a building company.
I have a network of suppliers, a structural engineer, etc., and can have pipe materials, earthworks, foundation slab all done at low cost through the company without value-added tax.
Additionally, 140 skilled workers are employed in the company. This includes everyone from pipefitters, painters to bricklayers.Are they all working for free? I hope you are not counting on undeclared work either!
I accept 'cheaper' as valid. Still, you need the materials and so on.
But you did not mention any of this before; you talked about a turnkey house for 130,000.
That doesn’t even include the foundation slab, let alone additional building costs.
How many square meters is it supposed to be?
face26 schrieb:
They do everything for free? I also hope you’re not counting on undeclared work! Cheaper I can accept, but you still need the materials etc.
Not for free, but cheaper! For example: list price for concrete: 120 euros, purchase price for the company: 65 euros.
Materials: also cheaper, not list prices.
VAT: I recommend familiarizing yourself with input tax deduction for businesses. However, this should not be part of this thread.
Berlin85 schrieb:
VAT: I recommend familiarizing yourself with input tax for businesses. However, this should not be part of this thread. You are a private individual. Any business selling to you must charge VAT. Anyone who does not comply is acting illegally.
What I often find missing in discussions comparing ownership and renting are the costs associated with owning a property. Starting with interest payments, notary fees, and so on. And the absolutely most important factor: maintenance. Owning a property is generally not suitable for saving money. Here a faucet, there something for irrigation, the lawn mower, and so on.
Yes, with renting, you might expect rent increases. But if something breaks, I just call the landlord, and that’s that.
We also have a single-family home. But with a net income of over €4000 (around $4300) and two children, we limited ourselves to a monthly payment of just over €800 (about $870). We looked for properties accordingly. A new build was already out of the question due to construction costs.
Freedom, besides time independence, also means financial independence. I absolutely DO NOT want us to hold back or have to budget daily conveniences. After all, I am living now. Who knows what tomorrow will bring? And having to worry about whether we can or want to eat out for the third time this week? No, thank you.
Yes, with renting, you might expect rent increases. But if something breaks, I just call the landlord, and that’s that.
We also have a single-family home. But with a net income of over €4000 (around $4300) and two children, we limited ourselves to a monthly payment of just over €800 (about $870). We looked for properties accordingly. A new build was already out of the question due to construction costs.
Freedom, besides time independence, also means financial independence. I absolutely DO NOT want us to hold back or have to budget daily conveniences. After all, I am living now. Who knows what tomorrow will bring? And having to worry about whether we can or want to eat out for the third time this week? No, thank you.
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