SumsumBiene29 Dec 2020 21:11Hello,
Actually, we have been looking for an existing property since last summer. According to our mortgage broker, we have a budget of around 300,000 (all-in), which a bank is likely to approve.
The market here in Schleswig-Holstein has also become very tight, and the houses on offer are often in need of renovation, so you easily exceed the budget (especially since many city dwellers laugh at our house prices and like to secure a holiday home here).
Now the question is whether it would be possible to build a house within our budget (assuming we can get a building plot). Our requirements are not very high; it doesn’t need to be a huge house. 120 square meters (1300 square feet) would be completely sufficient.
In a neighboring village, plots are currently being developed. The price isn’t fixed yet but is expected to be below 100 euros per square meter. The plots are about 700 square meters (7500 square feet) in size. Unfortunately, we have no experience with this topic at all, and I definitely don’t want to miscalculate.
We can only contribute limited personal labor. We are not unskilled, but both fully employed with a child, dog, and horse. What are your thoughts?
Actually, we have been looking for an existing property since last summer. According to our mortgage broker, we have a budget of around 300,000 (all-in), which a bank is likely to approve.
The market here in Schleswig-Holstein has also become very tight, and the houses on offer are often in need of renovation, so you easily exceed the budget (especially since many city dwellers laugh at our house prices and like to secure a holiday home here).
Now the question is whether it would be possible to build a house within our budget (assuming we can get a building plot). Our requirements are not very high; it doesn’t need to be a huge house. 120 square meters (1300 square feet) would be completely sufficient.
In a neighboring village, plots are currently being developed. The price isn’t fixed yet but is expected to be below 100 euros per square meter. The plots are about 700 square meters (7500 square feet) in size. Unfortunately, we have no experience with this topic at all, and I definitely don’t want to miscalculate.
We can only contribute limited personal labor. We are not unskilled, but both fully employed with a child, dog, and horse. What are your thoughts?
Ötzi Ötztaler29 Dec 2020 21:21
SumsumBiene schrieb:
According to our financial advisor, we have an all-in budget of 300,000, which a bank is likely to approve. Look for affordable existing properties or consider buying a nice condominium. You would have to budget very tightly for a new build. Things can easily go wrong during construction, and even the smallest cost increase could leave you bankrupt. Sorry it doesn’t look more promising, but current prices are insane, even if you do a lot of the work yourself.
K
knalltüte29 Dec 2020 21:54Currently, I am also building (a semi-detached house with) only about 130m² (1400 sq ft). For the house alone, excluding the land and before subsidies, nearly 300K is due. With a standard energy-saving regulation, the cost could certainly be considerably lower, but you also have to factor in property transfer tax and additional construction-related costs.
I see a dog and a horse involved. Both are absolutely wonderful when you can grow up with them! But a horse costs several hundred per month (at least that was the case for us and for the horse owners I know). The 700m² (7500 sq ft) area will not be sufficient in the future to keep the horse on your own property.
Is this known to the financial advisor? (Is the horse included in the household budget?) It’s probably going to be tight either way, but with a horse, it won’t work if the budget is limited.
Have you ever kept a detailed household budget yourself? (at least for 1 year), what is your net income and equity? What remains at the end of the month? Payments equivalent to your current rent alone are certainly not enough to cover financing.
What would you be willing to give up to afford the house, and are you prepared to do this for 30 years? Are there alternatives to consider? (e.g., leasehold land) Financing over two generations?
I see a dog and a horse involved. Both are absolutely wonderful when you can grow up with them! But a horse costs several hundred per month (at least that was the case for us and for the horse owners I know). The 700m² (7500 sq ft) area will not be sufficient in the future to keep the horse on your own property.
Is this known to the financial advisor? (Is the horse included in the household budget?) It’s probably going to be tight either way, but with a horse, it won’t work if the budget is limited.
Have you ever kept a detailed household budget yourself? (at least for 1 year), what is your net income and equity? What remains at the end of the month? Payments equivalent to your current rent alone are certainly not enough to cover financing.
What would you be willing to give up to afford the house, and are you prepared to do this for 30 years? Are there alternatives to consider? (e.g., leasehold land) Financing over two generations?
W
WilderSueden29 Dec 2020 22:04That will be difficult. Let’s break it down: land costs €70,000, additional building-related expenses (hard to estimate without a specific plot) let’s say €50,000, leaving €180,000 remaining. That would be €1,500 per square meter for the house including the foundation slab, kitchen, garden, terrace, and carport. There is a general rule of thumb of €2,000 per square meter for a basic standard just for the house, and you are well below that. Either you can do a lot of the work yourself (which is rather unrealistic) or you will need to increase the budget.
WilderSueden schrieb:
There is a rule of thumb of 2000€ per sqm for a basic standard only Hello,
I think 2000€ per m² (10.8 sq ft) is no longer realistic.
I would suggest first trying to secure a plot of land and then take your time to consider the next steps.
Schleswig-Holstein is definitely worth it...
Regards, Olli
W
WilderSueden29 Dec 2020 23:05I don’t think it’s completely unrealistic, but you really can’t have any special requests. Our offer from Town & Country roughly matches that range for the standard house without the kitchen. However, in this case, that’s not relevant since the available budget is significantly lower. You would need to build more like @hegi___.