ᐅ Is Buying a House a Wise Decision in the Current Market Situation?
Created on: 23 Sep 2020 14:32
A
Alibert87
Good day and hello everyone,
Some time ago, I joined this forum to gather information and read experience reports.
I would like to get your neutral opinion on whether buying property at this time would be advisable. We currently rent in a "very good location" and would like to purchase a home here. Many properties are sold "off-market" or only available at very high prices (I’m talking well over 500,000). There is no land available for development; if there is, a property is demolished and rebuilt. I want to gather some input on whether this whole situation is crazy or if such a project is feasible.
Since we don’t have a specific property in view yet but have been monitoring the market for about 1.5 years and have already done quite a few viewings, I assume the median price for homes or condominiums that suit us would be around 600,000.
He, 33 years old, permanently employed in the public sector, net income 2,600 euros (plus 14 monthly payments plus bonus, around 5,000) – from 2021 about 3,000 net (fixed)
She, 32 years old, permanently employed part-time, 25 hours per week, net income 2,300 (plus additional payments around 2,000)
1 child (child benefit) – possibly a second child within the next 3–5 years
Married, tax class 4
Equity around 110,000 (plus 30,000 as a buffer)
Regarding equity, I have a question: Are bank conditions tiered, so that having, for example, 10,000 more in equity results in a better loan offer (how does this tiering work)?
We are really torn whether or not to take this step. It feels very surreal to spend so much money on housing.
I am grateful for any advice
Regards
Some time ago, I joined this forum to gather information and read experience reports.
I would like to get your neutral opinion on whether buying property at this time would be advisable. We currently rent in a "very good location" and would like to purchase a home here. Many properties are sold "off-market" or only available at very high prices (I’m talking well over 500,000). There is no land available for development; if there is, a property is demolished and rebuilt. I want to gather some input on whether this whole situation is crazy or if such a project is feasible.
Since we don’t have a specific property in view yet but have been monitoring the market for about 1.5 years and have already done quite a few viewings, I assume the median price for homes or condominiums that suit us would be around 600,000.
He, 33 years old, permanently employed in the public sector, net income 2,600 euros (plus 14 monthly payments plus bonus, around 5,000) – from 2021 about 3,000 net (fixed)
She, 32 years old, permanently employed part-time, 25 hours per week, net income 2,300 (plus additional payments around 2,000)
1 child (child benefit) – possibly a second child within the next 3–5 years
Married, tax class 4
Equity around 110,000 (plus 30,000 as a buffer)
Regarding equity, I have a question: Are bank conditions tiered, so that having, for example, 10,000 more in equity results in a better loan offer (how does this tiering work)?
We are really torn whether or not to take this step. It feels very surreal to spend so much money on housing.
I am grateful for any advice
Regards
Alibert87 schrieb:
being renovated according to our wishes (previously occupied by an elderly lady for the last few years) and costs about 400,000.
What is still a downside for us: no direct access to the garden, no garage attached to the house, no parking space. Is it also not possible to access the garden from the back, at least by bicycle?
The lack of a parking space is unfortunate—are there only free on-street parking spots?
A mid-terrace house was never an option for us because of the narrow space and poor lighting conditions; but recently we looked at some "modern" mid-terrace houses with floor-to-ceiling windows, very well laid out, etc., and this offer made us reconsider. To get an idea, just visit h_o_u_z_z and search for "mid-terrace house"—the projects there should show you what is possible, especially if you plan to renovate or modify anyway.
In my opinion, the price/performance ratio for such "small" properties isn’t right. Or maybe we just lack the imagination for mid-terrace houses... Compare what you can get locally for the same price in apartments: they usually don’t have internal stairs, but more neighbors (often above, too), less control, and generally no garden. Still that bad?
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Pinkiponk30 Nov 2020 19:42Alibert87 schrieb:
...- I missed the approximate year when the house was built. Could you please tell me again?- Are there enough public parking spaces nearby for (your) cars?
- Is it true, as a previous poster mentioned, that the townhouse is located in the Munich area?
You wrote "renovate," not "refurbish" or "modernize." Are you aware of the difference? Renovating is a minor update.
I had a fourth question, but I forgot it for now. I will add it once I remember.
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Pinkiponk30 Nov 2020 19:46hampshire schrieb:
...Thank you very much for putting your old photo back. Eddy is probably really lovable and cute in person, but in the photo, he looked way too thin to me—I was almost ready to send him some treats. But maybe you are all that slim. ;-)P
Pinkiponk30 Nov 2020 19:48Scout schrieb:
Compare what you can get locally for that price in apartments: although there are no stairs inside the living space, there are usually more roommates (often above as well...), shared decision-making, and typically no garden. Still that bad? I find this argument exceptionally good. I will keep it in mind.
Alibert87 schrieb:
There is now the possibility that we could buy a property in our desired location. A whole plot. Additional info:
Unfortunately, it is only a mid-terrace house, it would still need to be renovated according to our wishes (occupied by an elderly lady in recent years) and costs around 400,000.
What is still negative for us: no direct access to the garden, no garage at the house, no parking space.
(I don’t have more details yet, as it is still quite recent)
A mid-terrace house was never an option for us because of the narrowness and poor lighting conditions; now we have looked at a few "modern" mid-terrace houses that had floor-to-ceiling windows, were very well designed, etc., and this offer made us start to reconsider.
In my opinion, the price/performance ratio for such "small" properties doesn’t add up. Or maybe we just don’t have the necessary imagination for a mid-terrace house...
Thanks for your opinions 🙂 It always depends on the property. I have also seen cleverly designed mid-terrace houses that made me reconsider—but also some with poor lighting, very small gardens, and zero privacy on the terrace. In the city, such a property can usually be sold quite quickly; in rural areas, hardly anyone wants to live like that. You really have to look closely. My parents-in-law live in such a house as well. Their neighbors are gradually passing away, and these terrace houses, which tend to be less popular among Germans, are now being bought by so-called newcomers. The cultural differences and the limited space are not a particularly fortunate combination, to put it mildly....
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Mitleser1231 Dec 2020 09:43Jean-Marc schrieb:
As always, it depends on the property. I have also seen cleverly designed terraced middle houses where I would have had second thoughts – but also some with poor lighting conditions, tiny gardens, and zero privacy on the terrace. In cities, such properties can sell quite quickly, but in rural areas, hardly anyone wants to live like that. You really need to look closely. My in-laws live in a similar situation. Their neighbors are gradually passing away, and the terraced houses, which are rather unpopular among Germans, are being bought by so-called newcomers. The cultural differences and the limited space are not a particularly fortunate combination, to put it mildly....My condolences to the newcomers.
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