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?
Joedreck schrieb:
Generally, real estate is not suitable for saving.
Here a faucet, there aI see it differently. I consider the interest as rent and the principal repayment as a savings installment. The money is not lost but, in most cases, well invested. Even as a tenant, I have to spend money, for example on minor repairs and cosmetic clauses. Or because I buy built-in furniture or similar. I would rather spend that money on my own house than on an apartment I don’t own.
I think that, in most cases, renting and buying cannot really be compared because you usually build bigger or better equipped than you would rent.
Berlin85 schrieb:
Checking in......the response to this topic is quite large! Of course. Threads without a clear question, basically chat threads, even encourage the lurkers here to leave their input.
Berlin85 schrieb:
I found the first answer unserious. A question directed at you cannot be an unserious answer. And if you really think so, then your wife must have an unserious profession. Simple categories are easy to open. That’s how simple your logic is.
Berlin85 schrieb:
Is it wrong to provide for your family if your own mother is living in old-age poverty? A disgusting statement from you! You should leave personal attacks out of this. A neutral piece of information would have been sufficient for the person who asked here. No one has spoken badly or with contempt.
You may be excellent at math (except when it comes to homebuilding cost calculations), but everything else needs improvement. Your ability to accept criticism is poor.
Edit: “with you”
ypg schrieb:
Yes, of course. Threads without a clear question, so-called chat threads, even encourage lurkers here to leave their input.
A question addressed to you cannot receive an unprofessional answer. And if you actually mean that, then your wife must have an unprofessional job. Simple categories can be opened very easily. Your logic is just that simple.
You should leave personalities out of this. Neutral information would have been enough for the person who asked here. No one said anything negative or disgustingly demeaning.
Mathematics (except when it comes to house construction calculations) might be excellent for you, but the rest needs improvement. Ability to accept criticism is lacking. ops:
Edit: “to you” I wanted to start a serious thread about home construction and costs. And as a construction manager, I have thick skin, no worries! But anything below the belt will be called out.
Also, no worries: I can calculate. That’s why I’m not taking out a 400,000€ (about $430,000) loan.
My favorite argument in favor:
Housing costs make up by far the largest fixed monthly expense for the average person. Securing these costs against inflation (by owning property) is never a bad idea. I know exactly what my (high-quality) living situation will cost over the next 20 years. Meanwhile, my income is rising.
There are other pros and cons, but ultimately those are luxury problems. In your own home, you have more freedom, in my opinion.
There are comparison calculations: renting/stocks versus ownership, regarding wealth building. Unfortunately, no one has a crystal ball, but in countries where homeownership is clearly easier (and cheaper) than in Germany, private wealth is simply higher. This is based on a look back at the past; whether this will also be true in the future, no one can say for sure.
Housing costs make up by far the largest fixed monthly expense for the average person. Securing these costs against inflation (by owning property) is never a bad idea. I know exactly what my (high-quality) living situation will cost over the next 20 years. Meanwhile, my income is rising.
There are other pros and cons, but ultimately those are luxury problems. In your own home, you have more freedom, in my opinion.
There are comparison calculations: renting/stocks versus ownership, regarding wealth building. Unfortunately, no one has a crystal ball, but in countries where homeownership is clearly easier (and cheaper) than in Germany, private wealth is simply higher. This is based on a look back at the past; whether this will also be true in the future, no one can say for sure.
Berlin85 schrieb:
I wanted to start a serious thread on the topic of house construction and costs. You asked questions that were answered in the first reply. After that, the thread drifted off-topic while you were away. And you’re also contributing off-topic with your "serious" answers.
I’ll repeat my question: What is the purpose of your thread? What do you really want to know? What kind of input are you looking for from us?