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?
motorradsilke schrieb:
So what? If the person living there feels comfortable, then it’s not a problem. The house can be renovated later. Not everyone has to live in a cutting-edge, high-tech home. I’m not talking about comfort or high-tech investments, but about those that you cannot choose whether to make or not.
When, just in time for the start of autumn, the old heating system finally breaks down, or when leaky windows mean the house no longer stays warm and every year an additional bill from the energy supplier arrives, the money for repairs has to come from somewhere. Or the house has to be sold, although it’s uncertain whether you’ll find a buyer for such a property right away, and you still have to find a new place to live yourself. This often cannot be done overnight.
There may be situations where paying in installments during retirement is possible, and of course it depends on the amount. If at 65 or 67 there are still 1–2 possible extra repayments to make, then fine… but as a financing model for the majority in the future, I consider this absolutely unsuitable and not advisable.
N
nordanney1 Jan 2021 12:13Jean-Marc schrieb:
There may be situations where discussing installment payments during retirement makes sense, and of course it also depends on the amount. If there are still 1-2 possible special repayments left at age 65 or 67, OK, whatever... but as a financing model for the future for the majority, I consider it absolutely unsuitable and not advisable. I can tell you that a large portion of financing arrangements carry significant (but manageable) remaining debt into retirement. This is not the exception but rather common and not undesirable. The debt-free retirement promoted here applies to only a few people in reality.
nordanney schrieb:
I can tell you that a large portion of financing carries significant (but manageable) residual debt into retirement. This is not the exception, but rather common and not something to be judged negatively. The debt-free retirement promoted here applies to only a few people in reality. My concern is whether this was already agreed upon from the start back then. Those retiring today benefited from historically low interest rates on their refinancing, which were not foreseeable when the original mortgage was taken out. This should actually lead to shorter rather than longer loan terms than initially planned.
It’s logical that over a 25 or 30 year term, things can happen that require additional charges on the house. That can happen. But deliberately planning to still have repayments at age 70, just so that even the forklift operator or supermarket cashier can get their name on the land register, would not be a good development. The high number of early retirements, often with significant pension reductions, should not be overlooked.
But maybe we simply need some more property buyers who financially crash hard with their investment properties and help cool down the market a bit...
SumsumBiene1 Jan 2021 12:57Jean-marc: This is just written in a really arrogant way.... Without the Aldi cashier or the forklift operator, you probably wouldn’t have made it into the land register either!
That kind of attitude really annoys me...
That kind of attitude really annoys me...