ᐅ Prefabricated House or Traditional Solid Construction Companies – Budget
Created on: 13 May 2020 12:56
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Cary2020
Hello everyone. As you can see, I am new here and looking for advice. We are 25 and 27 years old, both employed, and our monthly net income is 3100 € (approximately $3,400). We have no equity saved up (we are already aware of the risks). Now, by coincidence, we have found a plot of land. It’s the only one in the area that meets our expectations (small, no more than 500 m² (6000 sq ft)). It was more or less a “random find.” Although we had agreed that we wanted to build a house someday, we hadn’t expected it to happen so soon. We want to build at the edge of the Harz mountains, in Lower Saxony. That’s the basic info.
Over the past few days, we have spent a lot of time researching the topic but have not reached any concrete conclusions yet. We have had initial phone appointments with banks; even without equity, it’s not impossible, and some very reputable, well-known banks were involved. We have further appointments with first companies and additional banks planned for next week. However, I would also like to connect with “regular” homeowners to get realistic assessments because we probably belong to this group ourselves.
Does anyone have experience with building a house at our income level? Is it feasible not only on paper but also in reality?
Then the big question arises: do we want a traditional solid house (brick and mortar) or a prefab house? Twenty years ago, when my parents built their home, prefab houses had a bad reputation. Nowadays, that seems to have improved significantly. Basically, we are still undecided. We see major advantages with prefab houses in the absence of moisture problems, clearly the price (is that really the case?), and according to experience reports, there is less shoddy workmanship. I’m hoping to learn from your experiences here.
The last point, of course, will be contacting companies. I am a bit hesitant about regional developers and would prefer to get in touch with larger firms like Viebrockhaus (probably quite expensive), Massa Haus, Arge, etc. Here too, I hope to have an initial exchange with you.
As you can see, we are just starting out and would like to bring some orientation to our confusion of thoughts. Thanks in advance for your help.
Over the past few days, we have spent a lot of time researching the topic but have not reached any concrete conclusions yet. We have had initial phone appointments with banks; even without equity, it’s not impossible, and some very reputable, well-known banks were involved. We have further appointments with first companies and additional banks planned for next week. However, I would also like to connect with “regular” homeowners to get realistic assessments because we probably belong to this group ourselves.
Does anyone have experience with building a house at our income level? Is it feasible not only on paper but also in reality?
Then the big question arises: do we want a traditional solid house (brick and mortar) or a prefab house? Twenty years ago, when my parents built their home, prefab houses had a bad reputation. Nowadays, that seems to have improved significantly. Basically, we are still undecided. We see major advantages with prefab houses in the absence of moisture problems, clearly the price (is that really the case?), and according to experience reports, there is less shoddy workmanship. I’m hoping to learn from your experiences here.
The last point, of course, will be contacting companies. I am a bit hesitant about regional developers and would prefer to get in touch with larger firms like Viebrockhaus (probably quite expensive), Massa Haus, Arge, etc. Here too, I hope to have an initial exchange with you.
As you can see, we are just starting out and would like to bring some orientation to our confusion of thoughts. Thanks in advance for your help.
A
Alessandro14 May 2020 09:10Children are always a challenge when it comes to home financing!
However, if you need a new car or even two, that is usually much less significant.
Since you are just starting your careers, I am confident that your net household income will increase by around 1,000 euros in the next 3 to 5 years.
This is important for financing because it means you can borrow a larger loan amount.
I don’t know your specific requirements, but I wouldn’t be satisfied with a house of 120 sqm (1,292 sq ft) if I know that in 3 to 5 years I could afford to finance 150 sqm (1,615 sq ft).
However, if you need a new car or even two, that is usually much less significant.
Since you are just starting your careers, I am confident that your net household income will increase by around 1,000 euros in the next 3 to 5 years.
This is important for financing because it means you can borrow a larger loan amount.
I don’t know your specific requirements, but I wouldn’t be satisfied with a house of 120 sqm (1,292 sq ft) if I know that in 3 to 5 years I could afford to finance 150 sqm (1,615 sq ft).
M
Matthew0314 May 2020 09:51TE is online repeatedly, but I believe nothing more will come of it...
I would advise against it. We also plan to start building no earlier than next year. We bought our land 2.5 years ago—50 km (30 miles) south of Berlin for €40 per square meter (about $43 per square yard). The plot size is 1,447 square meters (about 15,580 square feet). The current value is around €120+ per square meter (about $130 per square yard). We still owe about €40,000 on it.
We both earn over €6,000 net per month (about $6,500) and have stable jobs (teacher and healthcare manager). We also don’t have any equity. And we still hesitate to build. I tend to be risk-averse. If I take out a loan, I need to be able to save at least €1,500 per month (about $1,600) after all deductions. You never know what might come up—car repairs or other unexpected expenses. We also want to travel again when it’s possible. Personally, I would never start building if it meant having no savings left at the end. Plus, you might want to have children, which means parental leave with lower income.
In summary: don’t do it. Keep saving and try to increase your income. And please don’t look for examples where it worked out.
We both earn over €6,000 net per month (about $6,500) and have stable jobs (teacher and healthcare manager). We also don’t have any equity. And we still hesitate to build. I tend to be risk-averse. If I take out a loan, I need to be able to save at least €1,500 per month (about $1,600) after all deductions. You never know what might come up—car repairs or other unexpected expenses. We also want to travel again when it’s possible. Personally, I would never start building if it meant having no savings left at the end. Plus, you might want to have children, which means parental leave with lower income.
In summary: don’t do it. Keep saving and try to increase your income. And please don’t look for examples where it worked out.
Cary2020 schrieb:
The developed plot costs 16,000 €.If the plots are this affordable, you should have no problem finding a plot in 5 years once you have a higher income and have saved around €50,000. If you can’t manage to save €1,000 per month now, you probably won’t be able to cover the mortgage payments plus additional costs for a 120 m² (1,292 sq ft) house.
Tassimat schrieb:
If you can’t manage to save 1,000 per month now, then you won’t be able to cover the loan repayment plus additional costs for a 120m² (1,292 sq ft) house.And if you manage to? Then you’re breaking even and won’t be able to build any savings. You should never build a house and then have no money left for other things like vacations, car repairs, or buying a car. It’s like buying a Ferrari and then only driving it to church on Sundays because you can’t afford more.
R
RotorMotor14 May 2020 14:11Ybias78 schrieb:
We both earn over €6,000 net and have secure jobs (teacher and healthcare executive). 6k net as a teacher, how is that possible?
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