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?
P
pffreestyler19 Jun 2019 09:20HilfeHilfe schrieb:
You’re getting on my nerves slowly Are you serious? That’s quite bold, considering your entire posting history here in the forum...
Farilo schrieb:
I get it... different times, I guess.
Who still wants to spend their life like that these days? I find that absolutely arrogant. Please don’t see yourself as the standard and generalize your situation to others. @Topic: I also grew up in a household where building the family home meant being able to take a vacation every 5-6 years at most. I remember times when the refrigerator was quite empty, and I sometimes had to lend my parents money when unexpected expenses came up. Was I unhappy or did I have a bad childhood because of that? No, I honestly couldn’t have wished for a better one. It prepared me perfectly for life. The only thing I regret is not spending half a year abroad after finishing high school. That wasn’t common in my environment.
By now, I’ve been on several long-distance trips, I know what is possible and how amazing some places are, and yet I’m still taking the same step—which many here probably consider a mistake—and building a house on a very low income: about 2,000 euros net (approximately 2,150 USD) plus 300 euros additional income, with a loan repayment of 820 euros plus utilities. For this forum, that’s seen as financial suicide, but for me, it’s fine. I have deliberately chosen against international travel, even though, for example, the 3.5 weeks I spent in the USA were incredible. Instead, I enjoy my luxury house every day rather than 3.5 weeks of luxury vacation per year. I am already covering 90% of the loan payments during the construction phase and still pay half of a rent alongside that. I also have small expenses related to construction but never have to forgo anything besides vacations, which I did have before. My savings rate has dropped from 1,000 euros to 100 euros (approximately 1,070 USD to 107 USD).
I’m probably an exception here anyway. No university degree, not self-employed, modest tastes. Probably just a deeply rooted rural person rather than a big city dweller.
By the way, I find it hilarious (pardon my language) when I read what some here allocate their repayments to and consider it normal—things like an iPad, a MacBook, or 30,000 euros (about 32,200 USD) for their child’s first car. That really shows how disconnected and spoiled many of us in Germany have become. A brilliant cutthroat society.
pffreestyler schrieb:
I find that an absolutely arrogant statement. Please don’t consider yourself the standard and assume others are like you.You find the "statement" arrogant? Very interesting. Especially since there is no actual statement in the post you quoted.Equally interesting is that you, the worldly person, in the same post where you wrongly advise me not to assume others are like me, then do exactly that and call them out of touch.
pffreestyler schrieb:
By the way, I’m laughing my head off (sorry for the expression) when I read what some people here are saving for and take for granted, like an iPad, MacBook, or $30,000 for their child’s first car. That just shows how out of touch and spoiled we have become in Germany. What a cutthroat society.But that’s how it is...
Preach water, but drink wine yourself.
With that said
Have a great week!
H
HilfeHilfe20 Jun 2019 07:04Farilo schrieb:
You find the "statement" arrogant? Very interesting. Especially since there is no statement at all in the post you quoted.
Equally interesting is that you, the world-wise person, then do exactly what you wrongly advised me not to do in the same post—you generalize from me to others and then label them as unrealistic.
But that’s how it is...
Preaching water and drinking wine yourself.
With that said,
have a great week! Society has also become one of envy. When you earn the right amount of money, it just gets spent.
P
pffreestyler20 Jun 2019 10:48Farilo schrieb:
You find the "statement" arrogant? Very interesting. Especially since there is no statement in the post you quoted. You wrote regarding Yosan’s post: "Who still wants to spend their life this way today." To me, that is a statement I find arrogant. If I misunderstood that, sorry, my mistake. But I suspect there wasn’t much room for misunderstanding...
Farilo schrieb:
Also very interesting is that you, a person of the world, in the same post where you wrongly advised me not to generalize based on me, then do exactly that and call others out of touch with reality.
But that’s how it is...
Preaching water and drinking wine yourself.
With that in mind
Have a nice week! I am certainly not a person of the world, and you probably aren’t either.
Touché, I generalized from myself to you. My mistake, I’m no better than you are. However, I suspect many can identify more with my viewpoint than with yours. Ultimately it doesn’t matter, everyone should and can live the way they want.
HilfeHilfe schrieb:
It has become a society full of envy as well. When you earn the corresponding money, you also spend it. I agree with you. If you are referring to me because of the above post as a kind of payback, I’m afraid I have to disappoint you. I consciously decided not to pursue university studies and likely a higher salary, although I was qualified for it. So far, I haven’t regretted it. Time will tell... Envy of such luxury is certainly not my thing – I simply don’t need it.
Ultimately, different views clash here, and it’s hard to find common ground. For me, that’s okay. To each their own.
pffreestyler schrieb:
You wrote in response to Yosan’s post, "Who still wants to live their life that way nowadays?" For me, that comes across as an arrogant statement. If I misunderstood, sorry, my mistake. But I suspect there wasn’t much room for misunderstanding there...
I’m certainly no worldly person, and you probably aren’t either.
Touché, I assumed you were like me. My mistake, I’m not better than you are. However, I guess more people can relate to my perspective than to yours. Ultimately, it doesn’t matter; everyone should and can do things the way they want.
I agree with you. If you refer to me because of the above post as some sort of retaliation, I’m afraid you’ll be disappointed. I consciously chose not to pursue a degree and presumably a higher salary, even though I was qualified for it. So far, I haven’t regretted it. Time will tell... Envy of the luxury mentioned above is definitely not an issue for me — I just don’t need it.
In the end, different views clash, making it hard to find common ground. That’s fine with me — to each their own. Hi Pffreestyler,
Well, respect for your attitude toward life/income/work/envy.
But your interpretations are simply wrong. You have to not only be able to understand but also want to. Otherwise, it’s pointless. (Still: there’s a difference between a sentence that ends with a “?” and one that ends with “?!”. But apparently, you don’t want to get that.)
And even IF I meant it as a statement, I still see no reason to call it arrogant. Many, I’d even say every, next generation generally lives “better” or at a “higher standard” than the previous one. That’s life... And it’s the parents’ wish too! They want their children to have an (even) better life than themselves. I just don’t see what’s arrogant about that. Maybe there’s a bit of frustration involved on your side?
You didn’t study, although you were qualified, presumably earn less by choice, pay 50% of your “low” income as loan repayments, and envy is far from you. If you’re happy with that, that’s great!
Sounds like it’s working out. Congratulations!
P.S.: Having lived in 3 countries outside Europe and traveled extensively for work, I’m probably closer to being a “man of the world” than you are. Only with the necessary elegance, I’m not quite there yet
And before you get annoyed again: no, I’m not entirely serious.
H
HilfeHilfe20 Jun 2019 13:47Many people think that once you are qualified, you automatically get a great job with a net salary of 7,000 and an 80-hour workweek. That is not the case. I completed an evening degree, work diligently, and do 2-3 hours of overtime per week. Given my income (85,000 per year), this is perfectly fine. I have time for my family and can afford to enjoy leisure activities and vacations. I have already traveled worldwide. I have to say that only in Germany is there a society driven by envy, with no recognition for achievements. The well-qualified low earner complains, while the high earner has to feel ashamed of consuming.
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