Hello,
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?
SumsumBiene31 Dec 2020 16:26Tassimat schrieb:
Older people can be funny. The previous owner of my house also said that only the front door needed to be replaced because there was a cold draft. I nodded understandingly, praised the condition of the house, and started a full renovation six months later. It really was as described. All relevant components are less than 10 years old (except for the roof, which dates back to 1977). The price was 275,000 € (approximately 295,000 USD).
However, the location is right in the middle of the village, practically built in with almost no garden and no terrace. The converted attic, though, is really nice (currently rented for 350 € (about 380 USD))!
Olli-Ka schrieb:
Hi,
even that alone is already worth a lot...
Yes, we have it very nice here. Just for that reason, the urge to go on vacation is almost unnecessary when you have a beautiful property. 15 minutes to the Baltic Sea, 45 minutes to the North Sea, 90 minutes to Hamburg.
If the weather is good, you’d be pretty silly to leave 😀
It’s an interesting story...
... look up "variable mortgage" (variable loan).
There were somehow unrealistic demands combined with resistance to advice.
Well, if you somehow need an “all-in designer kitchen” with Miele appliances.
Three or four years ago in Cologne, we bought a complete kitchen from Schüller at a small kitchen studio for about 6,500 € (around 7,000 USD), including installation.
That includes all appliances, countertops in an L-shape approximately 4.5 m x 3 m (14.7 ft x 9.8 ft), upper cabinets, etc.
That’s enough for us; it was only for a rental apartment and a temporary setup, but it will definitely last about 10 years. If the next tenant doesn’t take it over, we might even take it with us to Schleswig-Holstein.
Cheers, Olli I’ve skimmed through the Jana thread but see few options for comparison.
Regarding “frugality”: I’ve already read quite a bit here, and sometimes I’m shocked by the sums mentioned in some areas. That’s a different world for us. Five years ago, we still had to top up benefits (H4) just to get by comfortably. So yes... our expectations are “low.” It has to be functional and appealing. I would never spend 5,000 € (about 5,700 USD) on lighting, nor would I invest that much in landscaping.
Especially outdoors, I could really do a lot myself (and I wouldn’t mind if I only had a carport in two or three years... and even if I didn’t have one at all… we don’t have one right now either).
What do you understand by “own work” directly? I thought that meant our “free” labor. We know lots of friends/acquaintances in various trades. However, we would want to pay them, and two of them do renovation work professionally and charge around 40 € (about 45 USD) gross per hour. That’s probably still well below a company’s rate?
ypg schrieb:
How funny. I already wrote that yesterday. After that, it didn’t fit with your opinion 😉 So, to sum up for myself so far: Just barely possible, but not impossible. It depends on the land price (which will definitely be under 100 € (about 115 USD)).
Basically, I also want to know if I can/want to think further about this path or if I should just discard this option altogether for us.
We don’t even know if we would get one at all. There are only 8 plots available.
One more question that hasn’t been addressed so far: If you keep the monthly payments reasonable, based on the knowledge/option that you will sell the house when you retire and downsize, or the child takes over, and so on... If you consider a remaining mortgage balance at retirement age — would a bank even agree to that?
By the way, we don’t have 8,000 € (around 9,000 USD) in equity but 18,000 € (about 20,500 USD)... okay, that’s not huge either...
SumsumBiene31 Dec 2020 16:27....sorry....I just realized that I haven’t quite figured out how to quote properly yet 😀
SumsumBiene31 Dec 2020 17:02Intuitive? No. There is no existing garden; one would first have to create a small one by relocating the carport. There is no terrace and no option to build one. No bathtub, no guest toilet.
And the fact is, the house will be too large in no more than 15 years. Unless we actually have one or two more children (I am an early childhood educator).
We just haven’t looked at many houses yet, but I find that every time it’s quite enriching.
And the fact is, the house will be too large in no more than 15 years. Unless we actually have one or two more children (I am an early childhood educator).
We just haven’t looked at many houses yet, but I find that every time it’s quite enriching.
N
nordanney31 Dec 2020 17:39SumsumBiene schrieb:
One more question that hasn’t been addressed so far. If you keep the monthly payments reasonable, with the understanding or option that you might sell the house when you retire and downsize, or the child takes over, and so on… In other words, if you’re already planning for a remaining mortgage balance at retirement age, will a bank even agree to that? No problem, as long as you have a reasonably reliable pension (from wherever it comes).
I finalized my contract this summer with a theoretical term of 40 years – that means I’ll be 88 then.
Nevertheless, the house is incredibly affordable, even if the 280 sqm (3,014 sq ft) includes the attic or similar areas that might not count as official living space.
Compare that to similar properties on the usual online platforms. How much would something comparable cost?
By when do you need to decide on the property? I wouldn’t dismiss it spontaneously.
SumsumBiene schrieb:
280 sqm (3,014 sq ft) plus basement, no renovation backlog for 285,000.
Compare that to similar properties on the usual online platforms. How much would something comparable cost?
By when do you need to decide on the property? I wouldn’t dismiss it spontaneously.
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