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?
Serious question, serious answer:
Do with your money what you want.
The fundamental problem is not homeownership itself, but how people protect each other in case of separation. People often end up being treated unfairly.
You could say the same about marriage or having children … lol
… coming from you! I suppose these are just cliché bar stools arguments from… renters? In my opinion, this falls into the category of “badmouthing to soothe envy.”
So? Do you save diligently every month? Are you not locking yourself in with the financing bank for your house (those criminals), but where and how are you committing to yourself and your family?
By the way, I have nothing against people who prefer to rent. Everyone should do as they want and can. But I do have an issue with prettified bar stool clichés and ignorance that gets hyped up.
I also once considered renting again. I would have sold my house at a profit (not much, but a profit = savings), then rented, where I could have made peace with stairs and balconies. The problem was: rent for half the living space was more expensive than my mortgage payment. So I built a new house six years ago. In four years, we’ll still have €100,000 (about $) “burden” left on it. I can only shrug my shoulders at that. We can always sell. And we would have money for a motorhome too—we just don’t want it!
Do with your money what you want.
Bardamu schrieb:
But I know too many people in my circle of acquaintances who, mostly due to divorce, have to pay half the mortgage, plus rent for a new one-bedroom apartment, and also pay maintenance.
You simply can’t know what will happen over the next 30 years.
The fundamental problem is not homeownership itself, but how people protect each other in case of separation. People often end up being treated unfairly.
Bardamu schrieb:
You can ruin your life quickly with such huge commitments.
You could say the same about marriage or having children … lol
Bardamu schrieb:
And the value of a house usually does not stay the same. Especially not over decades. Today’s prefabricated houses start to mold both inside and outside after about 15 years.
So you can be glad if the place is still livable when you retire.
Bardamu schrieb:
That’s all very generalizing,
… coming from you! I suppose these are just cliché bar stools arguments from… renters? In my opinion, this falls into the category of “badmouthing to soothe envy.”
Bardamu schrieb:
Just because I don’t give the bank €120,000 in interest as a renter doesn’t mean I’m not investing in my retirement. But you can do that differently.
So? Do you save diligently every month? Are you not locking yourself in with the financing bank for your house (those criminals), but where and how are you committing to yourself and your family?
By the way, I have nothing against people who prefer to rent. Everyone should do as they want and can. But I do have an issue with prettified bar stool clichés and ignorance that gets hyped up.
I also once considered renting again. I would have sold my house at a profit (not much, but a profit = savings), then rented, where I could have made peace with stairs and balconies. The problem was: rent for half the living space was more expensive than my mortgage payment. So I built a new house six years ago. In four years, we’ll still have €100,000 (about $) “burden” left on it. I can only shrug my shoulders at that. We can always sell. And we would have money for a motorhome too—we just don’t want it!
I would like to generalize here:
Owning property is always cheaper than renting under three conditions:
Owning property is always cheaper than renting under three conditions:
- For a similar size, although people usually build or buy larger homes than rental apartments without a garden
- Provided you can afford the mortgage payments without facing liquidity issues
- There is a certain minimum amount of equity available
H
hampshire15 Jun 2019 18:22@Bardamu: What exactly was your point in this thread?
You were reflecting on the costs of houses and the "bondage" of debt, then asked, "Has anyone actually managed that?"
Answer: Yes, we have. Now we are building a second time for a different phase of life. I have never felt any bondage at any time.
You were reflecting on the costs of houses and the "bondage" of debt, then asked, "Has anyone actually managed that?"
Answer: Yes, we have. Now we are building a second time for a different phase of life. I have never felt any bondage at any time.
H
hampshire15 Jun 2019 18:27@Tassimat: If it’s really just about the money, then you live in a rental yourself and still invest in property that you rent out. Garages in growing cities are ideal, by the way. Having multiple units reduces the risk of rental loss, there are no utility bill reconciliations, no tenant protection laws, no eviction issues, minimal maintenance costs, and a good return on investment.
hampshire schrieb:
@Bardamu: What exactly was your intention in this thread again?Don’t confuse him with the OP @Berlin85
I find these discussions about derogatory terms like “servitude” and similar stuff pointless anyway. These debates only arise out of envy or arrogance: one envies, the other devalues.
The single-family home resident devalues the townhouse resident. The townhouse resident then looks down on the apartment dweller. The more exterior walls, the better off or wealthier or more valuable the occupant supposedly is. Or how is that supposed to work? And then there’s the owner versus tenant question. What if the owner lives in an apartment, and the house resident rents? Does that balance out? Who deserves respect then? And why?
The one who envies devalues in order to feel better about themselves. Fine by me. They can go on and bother their spouse or their club friends or coffee morning ladies, but woe if one of them pulls up in a luxury car worth over 50,000€ (about $54,000) instead of a mid-range model. Then they get ostracized from the lower middle class unless they say it’s only leased.
How can anyone afford a house? Sure, mostly through financing. I could do it too, but I don’t want to — the servitude to the bank, no thanks. I’d rather stay free and save my money in other ways, like buying an RV... At least I can afford to travel abroad, unlike the guy with the house.
And my neighbor, what does he think he is just because he’s self-employed? Is he better? Nah, he’s just cheating the tax office. And he’s not happy with his wife either, otherwise he wouldn’t be working all the time. Show-off.
Yeah, yeah, life is so unfair...
and now @hampshire is starting up with rental issues — landlords are criminals who exploit tenants, and if I’ve rented an apartment for 20 years, then I’ve basically paid for it myself, these rent sharks, those people.
The single-family home resident devalues the townhouse resident. The townhouse resident then looks down on the apartment dweller. The more exterior walls, the better off or wealthier or more valuable the occupant supposedly is. Or how is that supposed to work? And then there’s the owner versus tenant question. What if the owner lives in an apartment, and the house resident rents? Does that balance out? Who deserves respect then? And why?
The one who envies devalues in order to feel better about themselves. Fine by me. They can go on and bother their spouse or their club friends or coffee morning ladies, but woe if one of them pulls up in a luxury car worth over 50,000€ (about $54,000) instead of a mid-range model. Then they get ostracized from the lower middle class unless they say it’s only leased.
How can anyone afford a house? Sure, mostly through financing. I could do it too, but I don’t want to — the servitude to the bank, no thanks. I’d rather stay free and save my money in other ways, like buying an RV... At least I can afford to travel abroad, unlike the guy with the house.
And my neighbor, what does he think he is just because he’s self-employed? Is he better? Nah, he’s just cheating the tax office. And he’s not happy with his wife either, otherwise he wouldn’t be working all the time. Show-off.
Yeah, yeah, life is so unfair...
and now @hampshire is starting up with rental issues — landlords are criminals who exploit tenants, and if I’ve rented an apartment for 20 years, then I’ve basically paid for it myself, these rent sharks, those people.
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