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?
Yosan schrieb:
I’m okay with paying back taxes, but everything else falls into the "everything must be done immediately" category. If I can’t afford something right now, I’ll save up for it. And if there isn’t enough money for the exchange program in the USA, I’ll just have to tell my daughter that it’s not financially feasible, and she’ll learn that not everything is always possible. As a child, I often heard that this or that was too expensive (also because of my parents’ mortgage). That taught me to be patient and probably more modest than others, and to look for practical solutions instead of just being upset about not getting the perfect solution.
I don’t see that as a disadvantage.
Yes, I agree with replacing a washing machine; you can get one for well under 1000€ (about $1100). A dryer is a luxury, though. It’s not really necessary. Hello Yosan,
that’s perfectly fine. Your mindset is reasonable.
But where does your sense of reason start and end?
You wrote that if something isn’t possible, then it just isn’t.
Exactly. That’s how it is. I like that.
If buying a house isn’t possible, then it just isn’t. Period.
The question is: when exactly is it not possible?
Well, everyone defines that for themselves.
For ME, it wouldn’t work if I only have 1 euro (about $1.10) left at the end of the month. Because then there’s no patient saving for a diving certificate... which usually becomes irrelevant by the time you’re 90.
And hey, a house is also a luxury… not something you actually need ;-)
Altai schrieb:
I agree with the previous posters—there are things that are essential and others that are simply nice to have. A diving license, student exchange, and a fireplace clearly fall into the latter category, while a major car repair, a broken heating system, or a burst water pipe are expenses that must be covered.
An appliance costing less than 1000 euros (€) (about $1100 USD) shouldn’t really be the breaking point.
You can take a vacation at the Baltic Sea or the Bahamas. Of course, if someone plans only to stay at home for years, they’ve probably overextended themselves.
Silly example, I have a horse. It has two saddles (for different disciplines), but one no longer fits. At the moment, there’s no budget for a new one, and that’s it. Not an option. So I’ll just use the other saddle. If the animal gets sick—which can also be very costly—that falls under the “must” category since it’s a living being. I understand.
You assume, quite reasonably, that there is “enough” money available. Maybe not immediately, but it will come in eventually.
If the financial situation is as you describe, meaning you can save for it over time, that’s entirely reasonable. I’m not arguing about that. Everyone has to define their limits and manage accordingly.
But when financing is calculated recklessly, just to get through, and in the end there’s no way to save anything, then in my opinion it’s a total misjudgment by ProHaus. Even if “on paper” it seems to fit.
TR188 schrieb:
But what reasonable and sensible person would ever plan a financing so tight that every cent has to be turned over?? Hello TR188,
Well... that’s exactly my point. But obviously, there are quite a few!
I believe that those people just don’t see (or don’t want to see) it at that moment.
They tell themselves:
I can pay the house and car installments, food is budgeted and fits. It works. House secured.
Sometimes you’re simply blinded by the strong desire to “have it” and end up making poor choices.
Greed, ego, ignorance, naivety, and stupidity—all ingredients for such decisions. And many people carry these around at home.
H
HilfeHilfe18 Jun 2019 15:53You are starting to annoy me.
Farilo schrieb:
And hey, a house is also a luxury... You don't really need one either ,-)
That's true, but living is not a luxury. For example, my parents hardly had any choice. They rented a house (a middle unit in a row of three) owned by the local energy provider where my father worked. The workplace was right across the street, and the three employees living in the row houses were the ones on call. When the branch office was relocated to another town nearly 30 minutes away (including the staff), the houses were sold. My parents had to support themselves plus five children on my father’s salary alone, and there simply were no rental apartments or houses that would have been affordable considering commuting costs and other expenses, and there wasn’t much time left. So they decided to buy and make the mortgage payments as high as possible to pay off the house before several children went to university or similar, before money would become tight. For example, vacations only happened when my father received extra pay due to company events or other additional income.
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