ᐅ Building with Prefabricated House Companies in Mecklenburg-Western Pomerania
Created on: 20 Jan 2021 23:45
W
Wismar1989
Hello everyone,
I (male, 31) and my husband (33) are currently looking for a home to buy. We rent in Wismar and would like to stay within the city’s catchment area (ideally in the city itself, but given the steep prices here of up to 150€/m² (14 USD/ft²), that’s hardly affordable).
We are just at the beginning of the whole process and are trying to get an overview first. We quickly agreed that we will most likely build a house, single-story, as I have knee problems and going up and down stairs regularly would be difficult for me. We want to build a bungalow of about 100m² (1,100 ft²) with four rooms. Since we neither have children nor pets – and do not plan to – we don’t need more than 600–800m² (6,460–8,610 ft²) of land.
We both work in the public sector and have about €3,800 net monthly income (€4,000 net starting in April due to step increases, plus an annual bonus). Our family will support us with equity. We expect to have around €30,000 in savings and would like to spend no more than €320,000–350,000 for the land, house, and additional costs.
We prefer prefabricated house construction, since we have no experience with building and can’t contribute physically. Now the question is – how trustworthy are companies like Town & Country (which seems to have something of a monopoly in this region), MassaHaus, Platinhaus, etc.? Online reviews are very good – almost too good – so I wanted to seek advice first before contacting any of these companies.
Thanks in advance!
I (male, 31) and my husband (33) are currently looking for a home to buy. We rent in Wismar and would like to stay within the city’s catchment area (ideally in the city itself, but given the steep prices here of up to 150€/m² (14 USD/ft²), that’s hardly affordable).
We are just at the beginning of the whole process and are trying to get an overview first. We quickly agreed that we will most likely build a house, single-story, as I have knee problems and going up and down stairs regularly would be difficult for me. We want to build a bungalow of about 100m² (1,100 ft²) with four rooms. Since we neither have children nor pets – and do not plan to – we don’t need more than 600–800m² (6,460–8,610 ft²) of land.
We both work in the public sector and have about €3,800 net monthly income (€4,000 net starting in April due to step increases, plus an annual bonus). Our family will support us with equity. We expect to have around €30,000 in savings and would like to spend no more than €320,000–350,000 for the land, house, and additional costs.
We prefer prefabricated house construction, since we have no experience with building and can’t contribute physically. Now the question is – how trustworthy are companies like Town & Country (which seems to have something of a monopoly in this region), MassaHaus, Platinhaus, etc.? Online reviews are very good – almost too good – so I wanted to seek advice first before contacting any of these companies.
Thanks in advance!
W
WilderSueden21 Jan 2021 21:54Wismar1989 schrieb:
I have to admit that I didn’t know the difference between prefabricated houses and solid construction. But based on everything I’ve read about the two building methods, I think Town & Country mainly builds prefabricated houses. Town & Country builds solid houses using Ytong blocks, but according to pre-designed plans. This is called a standard design house. On the other hand, there are houses made from prefabricated components (usually wood, but sometimes concrete or brick elements) that are basically just assembled on site. And of course, some prefab manufacturers also allow you to bring your own architect’s design and have it built by them. It’s all quite confusing 😉
If you buy the plot from the construction company, remember that you will have to pay property transfer tax on the entire package, not just the land. Especially for plots priced at 35 €/m² (about $3.30 per sq ft), this can make a significant difference. Are these plots even fully serviced at that price?
W
Wismar198921 Jan 2021 21:55ypg schrieb:
You’re forgetting the additional construction costs. These include earthworks, surveying, permits (building permit/planning permission), connection fees, and so on. They add up on top, around 30,000 Euros (about 32,000 USD) for flat, dry terrain, and you don’t usually see them. Also, there’s property transfer tax, but I guess you meant property tax?!
I can’t find the Town & Country offer you mentioned. Town & Country is a solid construction company. Solid construction is fast nowadays, and terraces don’t always have to be concrete.
At 31, you don’t have to settle down yet, especially not if you’re mobile: if you might have a career or see yourself somewhere else, you shouldn’t invest in real estate. Imagine binding yourself to a house and then getting a job offer in Schleswig-Holstein in two years...
My advice to you: save some money first! If you dream, you also have to work for it. None of us here are professional builders, but we try to keep costs low by doing some work ourselves. With YouTube and one good hand, you can lay floors or build a carport when money is tight.
With a net income of €3,600 (about 3,850 USD) and no children, saving is possible. Where is all your money going?
I don’t see you owning a property — financially or otherwise. Yes, I meant the property transfer tax.
The Town & Country offer (the plots) is available on the local franchise partner’s website. I’m not allowed to link it here, but it exists.
Since we want to continue working in the public sector, we don’t mind settling in one region in our early 30s. It’s just that jobs aren’t really searched for in Schleswig-Holstein. There should be enough jobs in Western Mecklenburg.
We do save, but where else should the money go? We both commute 60km (about 37 miles) to work in different directions and live in relatively expensive housing because most of the options in Wismar are prefab panel buildings, which we don’t like. That’s why we’re in a hurry… better to pay off a €900 (about 970 USD) loan each month than throw money away on rent.
W
WilderSueden21 Jan 2021 22:01Wismar1989 schrieb:
Both commute 60km (37 miles) to work in different directions Do you want to keep doing that forever? That’s a lot of time wasted. If I were you, I’d first see if it’s possible to adjust your jobs so you don’t have to commute as far, and then look for a good place to live. Building now and then waiting 15 years for a transfer in the right direction doesn’t sound great to me.
W
Wismar198921 Jan 2021 22:01WilderSueden schrieb:
Town & Country builds solid houses with Ytong blocks, but based on prefabricated plans. This is called a production house. On the other hand, there are houses made from prefabricated components (usually wood, but sometimes also concrete or brick elements) that are simply assembled on site. Of course, with some prefab house manufacturers, you can bring your own custom architectural plans and have them build it. It’s all very confusing 😉
If you buy the plot from the building company, keep in mind that you will have to pay the full property transfer tax on the entire package, not just the land. Especially with plots priced at €35 per square meter (are they even serviced at that price?), this makes a real difference. Thanks for the clarification. It really is confusing. 🙂
This thought is bothering me too. We need to calculate whether it’s worth paying more taxes if we save more by buying a cheaper plot. And yes, these plots are actually serviced. In Wismar, prices there would be around €120-150 per square meter (about $130-160 per square yard). Even with property transfer tax on just the plot, that ends up being more expensive than €35 per square meter (about $3 per square foot) with tax on the entire package.
W
Wismar198921 Jan 2021 22:07WilderSueden schrieb:
Do you want to keep doing this forever? After all, it’s a lot of time lost. If I were you, I would first see if you can arrange your jobs so you have less commuting, and then look for a good place to live. Building now and then waiting 15 years for a transfer in the right direction doesn’t sound very appealing to me. Fortunately, we are not civil servants, so we have more flexibility when it comes to changing jobs. In the long term, we would like to work at least in the same city, so we can commute together. The long commute is not too bad at the moment because we spent almost an hour traveling from one place to another even in Berlin. Of course, we don’t want to do this forever, but I don’t think we want to commit to one single job until retirement even after 10 years. And as long as we live roughly in the middle between the three larger cities in the region, we remain flexible. For example, if we move near Schwerin, a commute to Rostock would take over an hour...
Let’s be straightforward:
Tight financing only works if you are willing to contribute your own labor. The €30,000 (about $32,000) in savings barely covers the kitchen, some lighting, and the property transfer tax.
What the construction company doesn’t provide, you have to do yourselves. Flooring, the terrace… you can’t really enjoy a house without having a garden and terrace properly set up.
Go to your bank and get a non-binding offer for how much credit you can get.
In my opinion, anyone who isn’t handy can only manage a house if they have enough income. Owning a house means you sometimes have to do some DIY work. Either you pay someone or you do it yourself.
Keeping a household budget would also be helpful.
Much is possible, even with your current installment amount, but only if you’re willing to put in your own enthusiasm. While others here say they can boost their modest savings by doing a lot of personal labor, you are really underestimating yourselves. In my view, that’s also not possible. Some set their goals too high, but you don’t trust yourselves, even though doing this work yourself is necessary.
My advice: save as much as you can for a few years. You’re still young…
Tight financing only works if you are willing to contribute your own labor. The €30,000 (about $32,000) in savings barely covers the kitchen, some lighting, and the property transfer tax.
What the construction company doesn’t provide, you have to do yourselves. Flooring, the terrace… you can’t really enjoy a house without having a garden and terrace properly set up.
Go to your bank and get a non-binding offer for how much credit you can get.
In my opinion, anyone who isn’t handy can only manage a house if they have enough income. Owning a house means you sometimes have to do some DIY work. Either you pay someone or you do it yourself.
Keeping a household budget would also be helpful.
Much is possible, even with your current installment amount, but only if you’re willing to put in your own enthusiasm. While others here say they can boost their modest savings by doing a lot of personal labor, you are really underestimating yourselves. In my view, that’s also not possible. Some set their goals too high, but you don’t trust yourselves, even though doing this work yourself is necessary.
My advice: save as much as you can for a few years. You’re still young…