ᐅ Is Building a House Within My Budget Feasible? Or Should I Give Up on My Dream?
Created on: 13 Dec 2021 22:38
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Marc240Hello everyone,
I really appreciate this forum, I have read a lot and the feedback comes from practical experience and is very honest. Thank you for that. That’s why I’m posting my question here, asking for advice.
I am currently facing a dilemma with my dream of building a house. First, I am a fairly cautious person who prefers to avoid financial risks and calculates everything multiple times. I have been keeping a household budget for almost a year now, to avoid overestimating myself. On average, I have about 800€ (around $860) left per month for my project after deducting rent of 1400€ (about $1500). My net monthly income is approximately 3100€-3200€ (about $3350-$3450). During this time, I have lived normally without any restrictions.
I own a plot of land in a good location, fully paid off, which I conservatively estimate to be worth at least 100,000€ (about $108,000).
My equity amounts to roughly 60,000€ (around $65,000), but at least half of that should remain as a safety buffer.
Very roughly asked, is it possible to make something happen with that?
I was actually quite optimistic about it. But the currently steeply rising prices and the responses I have received—at least from prefabricated house suppliers—give me a very different impression.
My idea was actually to build a turnkey house, except for painting and flooring, with 110m2 (about 1184 sq ft) of living space, two full floors, a simple square shape, no basement, no dormers, balconies or projections, a normal standard for today without smart home features or the like, with a concrete slab foundation for well under 300,000€ (around $325,000). That’s a price per square meter of around 2300-2500€ (roughly $250-$270). Isn’t that unfeasible nowadays?
Including additional costs like earthworks, connection fees, architect fees, paving the access road, etc., I don’t want to exceed a total budget of 350,000€ (about $380,000). Furniture, kitchen, and similar items are not included.
This amount is the limit I have set for myself and believe I can manage with my saving rate.
Unfortunately, it doesn’t seem at all possible to get something for that anymore. Do you agree with me? Or is there still some hope?
The house is planned to be built in Rhineland-Palatinate.
Currently, I rent very cheaply! Sometimes I wonder why I’m driving myself crazy day and night, thinking about selling the land and just living a nice life. But then there’s this spark that just doesn’t let go, that won’t give up the dream.
Can you give me some advice?
I really appreciate this forum, I have read a lot and the feedback comes from practical experience and is very honest. Thank you for that. That’s why I’m posting my question here, asking for advice.
I am currently facing a dilemma with my dream of building a house. First, I am a fairly cautious person who prefers to avoid financial risks and calculates everything multiple times. I have been keeping a household budget for almost a year now, to avoid overestimating myself. On average, I have about 800€ (around $860) left per month for my project after deducting rent of 1400€ (about $1500). My net monthly income is approximately 3100€-3200€ (about $3350-$3450). During this time, I have lived normally without any restrictions.
I own a plot of land in a good location, fully paid off, which I conservatively estimate to be worth at least 100,000€ (about $108,000).
My equity amounts to roughly 60,000€ (around $65,000), but at least half of that should remain as a safety buffer.
Very roughly asked, is it possible to make something happen with that?
I was actually quite optimistic about it. But the currently steeply rising prices and the responses I have received—at least from prefabricated house suppliers—give me a very different impression.
My idea was actually to build a turnkey house, except for painting and flooring, with 110m2 (about 1184 sq ft) of living space, two full floors, a simple square shape, no basement, no dormers, balconies or projections, a normal standard for today without smart home features or the like, with a concrete slab foundation for well under 300,000€ (around $325,000). That’s a price per square meter of around 2300-2500€ (roughly $250-$270). Isn’t that unfeasible nowadays?
Including additional costs like earthworks, connection fees, architect fees, paving the access road, etc., I don’t want to exceed a total budget of 350,000€ (about $380,000). Furniture, kitchen, and similar items are not included.
This amount is the limit I have set for myself and believe I can manage with my saving rate.
Unfortunately, it doesn’t seem at all possible to get something for that anymore. Do you agree with me? Or is there still some hope?
The house is planned to be built in Rhineland-Palatinate.
Currently, I rent very cheaply! Sometimes I wonder why I’m driving myself crazy day and night, thinking about selling the land and just living a nice life. But then there’s this spark that just doesn’t let go, that won’t give up the dream.
Can you give me some advice?
First of all: wouldn’t your thread fit better in the financing section (although I might not have come across you there, but that doesn’t have to be a bad thing)?
You already own a plot of land – did you inherit it or buy and fully pay it off yourself (which would be a plus for your creditworthiness)? And: what is allowed to be built on it?
That sounds largely reasonable and down-to-earth. A rectangular shape without frills is good, but square is rather inefficient, and two full floors are not worth it. At this size, you are on the borderline between a bungalow and a one-and-a-half-story house. What does the plot say about this (total area, plot ratio / floor area ratio)?
If the plot allows, you might consider building a bungalow instead, otherwise a one-and-a-half-story house. If you choose a “town villa” style with a square floor plan and add, worst case, a straight single-flight staircase on top, you could end up with about 140m2 (1507 sq ft) just to have the same usable space as 110m2 (1184 sq ft) without these three space-consuming elements.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
You already own a plot of land – did you inherit it or buy and fully pay it off yourself (which would be a plus for your creditworthiness)? And: what is allowed to be built on it?
Marc240 schrieb:
My idea was actually to build a turnkey house, except for painting and flooring, 110m2 (1184 sq ft) of living space, two full floors, simple square shape, no basement, no dormers, balconies, or projections, normal modern standard, no smart home or similar, with a concrete slab foundation
That sounds largely reasonable and down-to-earth. A rectangular shape without frills is good, but square is rather inefficient, and two full floors are not worth it. At this size, you are on the borderline between a bungalow and a one-and-a-half-story house. What does the plot say about this (total area, plot ratio / floor area ratio)?
If the plot allows, you might consider building a bungalow instead, otherwise a one-and-a-half-story house. If you choose a “town villa” style with a square floor plan and add, worst case, a straight single-flight staircase on top, you could end up with about 140m2 (1507 sq ft) just to have the same usable space as 110m2 (1184 sq ft) without these three space-consuming elements.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
H
hampshire14 Dec 2021 11:03If I were on my own, I would take a closer look at the tiny house approach. If I expected to live there with two people, I would consider exploring floor plans for holiday homes. If starting a family were a possibility, I would reconsider my expenses and hold back without a partner contributing financially.
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WilderSueden14 Dec 2021 13:09The critical point is certainly the issue of construction costs. The stated price range of under 2500€ per square meter is often difficult to achieve today. I would recommend looking less at large companies and more at smaller local businesses. This way, you can avoid tens of thousands of euros spent on show homes and sales commissions.
Regarding financing, I see fewer problems now. If you manage to stay within a budget of 350,000€ for the house and contribute a plot of land worth 100,000€, you will already have more than 20% equity. It should be possible to find a bank willing to finance this with a monthly payment of around 1500€. Although this exceeds the recommended 35% of net income, I consider it still manageable when you compare it to your current 1400€ rent plus 800€ savings per month.
Financing on my own was never an issue, and banks always calculated more conservatively than I did myself.
Regarding financing, I see fewer problems now. If you manage to stay within a budget of 350,000€ for the house and contribute a plot of land worth 100,000€, you will already have more than 20% equity. It should be possible to find a bank willing to finance this with a monthly payment of around 1500€. Although this exceeds the recommended 35% of net income, I consider it still manageable when you compare it to your current 1400€ rent plus 800€ savings per month.
Financing on my own was never an issue, and banks always calculated more conservatively than I did myself.
WilderSueden schrieb:
....if you compare the previous rent of €1400 plus €800 savings rate.I understood it a bit differently:
Marc240 schrieb:
Hello everyone,
On average, I have €800 per month left over for my project (after deducting rent of €1400).€1400 consists of €800 savings rate + €600 rent. So €1500 loan costs would definitely be too high. Or is the original poster actually paying €1400 rent by themselves??