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?
H
Hausbautraum2031 Dec 2020 19:44Where do all the 280 square meters (3007 square feet) go if there isn’t even a guest toilet or a bathtub included?
Is it possible to add these later? For me, either one would almost be a dealbreaker.
I still don’t see you actually building.
Is it possible to add these later? For me, either one would almost be a dealbreaker.
I still don’t see you actually building.
motorradsilke schrieb:
There are also other financing models. Some acquaintances set their monthly payment so low that they probably won’t pay off the house within their lifetime. You should consider consulting a financial advisor.If you don’t have any fallback options (severance pay, inheritance, mutual funds, stocks, whole life insurance, other real estate, etc.), this approach is extremely short-sighted and, to put it mildly, unwise. We all know how well this alternative financing model has worked in the US. Property values don’t always go up, so a sale is never guaranteed to yield a profit. Unless we are talking about a prime location and you don’t mind keeping the total repayment amount relatively high.
hausnrplus251 Jan 2021 03:03motorradsilke schrieb:
There are definitely other financing models. Some acquaintances set their monthly payments so low that they probably won’t finish paying off the house within their lifetime. You might want to consult a financial advisor about this.What the advantage of this is compared to renting is not entirely clear to me. Usually, the personal goal is to have fully paid off the owner-occupied property (not investment or rental properties) by retirement, so that the lower retirement income can be used more effectively.
M
motorradsilke1 Jan 2021 09:34hausnrplus25 schrieb:
What exactly the goal is compared to renting is not entirely clear to me. Usually, the personal goal is to have fully paid off one’s own property (not investment or rental properties) by retirement, so that the lower pension income can be fully utilized. The goal is to live in a home you own at a lower cost than renting. Plus, part of the payments still builds equity—you are essentially creating assets for your children or grandchildren.
Of course, it is preferable to have the home fully paid off by retirement. But that is not possible for everyone.
motorradsilke schrieb:
It is certainly nicer to have the home fully paid off by retirement. But that is simply not possible for everyone.It’s quite impressive how new ways are constantly being explored to make home ownership accessible even for the smallest budgets and to keep fueling the endless boom...
After all, the house ages along with its owner and will require investments later on. How is that supposed to work if the 70-year-old owner is still paying off the mortgage?
You can only hope that most banks stick to their policies and don’t go along with such schemes. Eventually, there has to be an end.
S
Schlenk-Bär1 Jan 2021 10:02Jean-Marc schrieb:
It's quite impressive how new ways are constantly explored to make property purchases possible even for the smallest budgets and to keep fueling the ongoing boom...
After all, houses age as well and will require investments later on. How is that supposed to work if the 70-year-old owner is still repaying the loan?
One can only hope that most banks stay consistent and don’t go along with such schemes. There has to be a limit at some point. A bit harshly expressed, but I agree with you in terms of content. I especially believe that the joy of owning a home is lost with constant penny-pinching. Ultimately, though, everyone has to make that decision for themselves. In my own circle, I have seen more than one case where exactly that led to the failure of the marriage.