ᐅ Is Building a House Within My Budget Feasible? Or Should I Give Up on My Dream?
Created on: 13 Dec 2021 22:38
M
Marc240
Hello 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?
W
WilderSueden14 Dec 2021 13:23Yes, that would be too low. If that’s the case, I would limit the installments to a maximum of 1100-1200€ and adjust the financing amount accordingly.
hampshire schrieb:
If I were on my own, I would take a closer look at the tiny house approach. Even if alone (and wanting to stay that way), I would not want to "demand" a reduction to less than 80 sqm (860 sq ft) from the original poster, which would still be clearly above the tiny house segment.
WilderSueden schrieb:
I would also look less at the big companies and more at smaller local businesses. That way, you can avoid tens of thousands of euros in model home and sales commission costs. I also consider owner-run local businesses to be the "first choice," as is well known. However, the idea that their customer acquisition costs are generally lower is wishful thinking.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
H
hampshire14 Dec 2021 14:2111ant schrieb:
Owner-managed regional companies are (as is well known) my "first choice" as well. I agree, I had a good experience—definitely better than working with a property developer 20 years ago.
11ant schrieb:
Even alone (and intending to stay alone), I wouldn’t want to "demand" reducing the floor area to less than 80 sqm (860 sq ft) from the original poster, which would still be clearly above the tiny house segment. Taking inspiration isn’t the same as copying. Some aspects can be adapted. The tighter the budget, the more worthwhile it is to get creative, find inspiration, and look for alternatives to expensive standard solutions.
Nida35a schrieb:
Are there houses in Germany designed for low-loader transport like in the USA, meaning compact, modular dimensions, cost-effective, and placed only on a slab foundation?Unfortunately, they are very rare — the contemporary tiny house scene’s disregard for the design basis of "ISO containers" goes beyond all rational understanding. It simply doesn’t connect with their mindset :-(https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
H
hampshire14 Dec 2021 15:4511ant schrieb:
Unfortunately only very rarely—the disregard of the contemporary tiny house community for the conceptual basis of "ISO containers" goes beyond anything rationally understandable. It simply has no connection with their bubble of thinking :-( No problem, you can find relevant concepts in the Netherlands.
Crazy idea:
Is it actually possible to create a small pond, place the house on a pontoon, and thus bypass building regulations by living on a boat?