Hello everyone,
I am married and have a one-year-old son.
My wife and I are both 30 years old.
We come from the area south of Baden-Württemberg – around Freiburg.
Both of us have above-average incomes.
My wife is currently on parental leave.
We finally acquired a plot of land three months ago through a private sale at a reasonable price.
[300m2 (3200 sq ft) for about 125,000 Euros including additional costs].
Now we have gathered several offers from prefabricated house suppliers, both solid construction and timber frame, etc.
When we calculated everything, the total cost of the entire building project—without the land, including additional costs, exterior works, kitchen, etc.—comes to about 600,000 Euros, truly turnkey, with a buffer included.
Here is the problem.
With the current interest rate, despite owning the land outright [equity], we cannot finance it.
The monthly burden is too high (around 2300–2500 Euros, including an L-Bank loan, which is currently basically in limbo with the state bank).
My idea is to buy a condominium first.
(Secure the land, fully paid (125,000 Euros)).
Our current apartment is too small for the long term.
Financing a condominium would be much easier since the loan amount is significantly lower than for building a house.
We will definitely inherit something in the coming years (the older generation has not yet passed anything on in advance, unfortunately, when it was needed).
My plan would be to buy and live in the condo, paying it off monthly.
Once the inheritance comes through, fully pay off the condo and then build the house. That way, we have the security of owning a paid-off condo and monthly rental income to support the repayment of the house loan.
What do you think? Do you have other ideas?
Regards,
Peter
I am married and have a one-year-old son.
My wife and I are both 30 years old.
We come from the area south of Baden-Württemberg – around Freiburg.
Both of us have above-average incomes.
My wife is currently on parental leave.
We finally acquired a plot of land three months ago through a private sale at a reasonable price.
[300m2 (3200 sq ft) for about 125,000 Euros including additional costs].
Now we have gathered several offers from prefabricated house suppliers, both solid construction and timber frame, etc.
When we calculated everything, the total cost of the entire building project—without the land, including additional costs, exterior works, kitchen, etc.—comes to about 600,000 Euros, truly turnkey, with a buffer included.
Here is the problem.
With the current interest rate, despite owning the land outright [equity], we cannot finance it.
The monthly burden is too high (around 2300–2500 Euros, including an L-Bank loan, which is currently basically in limbo with the state bank).
My idea is to buy a condominium first.
(Secure the land, fully paid (125,000 Euros)).
Our current apartment is too small for the long term.
Financing a condominium would be much easier since the loan amount is significantly lower than for building a house.
We will definitely inherit something in the coming years (the older generation has not yet passed anything on in advance, unfortunately, when it was needed).
My plan would be to buy and live in the condo, paying it off monthly.
Once the inheritance comes through, fully pay off the condo and then build the house. That way, we have the security of owning a paid-off condo and monthly rental income to support the repayment of the house loan.
What do you think? Do you have other ideas?
Regards,
Peter
W
WilderSueden10 Jan 2023 23:36kati1337 schrieb:
The issue with condominiums has been sufficiently explained here as not recommended. Of course, there is always a risk that the perspective on condominiums is somewhat one-sided. After all, this is a house-building forum, not a condo-buying forum, and many participants tend to favor building. There are people here living in apartments as well. But a condominium is definitely more expensive than many imagine, especially if you don’t want a 1980s-style apartment but rather something nicer in a smaller building that is in good condition with an owners’ association having adequate reserves. It’s only a limited budget option.
irmsche schrieb:
The loan amount would be 400,000 euros. But with that, you would only get a garden shed here. So you build a garden shed with a basement for 455,000 euros plus additional costs. Then you equip the place with a garage and a canopy.
I know some people who don’t realize that they can simply go down one step to reach their goal. Instead, they give up because they don’t understand that this step down isn’t a setback but the way to the goal. The wrong mental pathways are triggered: they give up rather than take a step down.
For you, a house without a basement and garage is a garden shed. That’s why you don’t see the solution.
One question you hadn’t answered: is your wife’s 2300 full-time?
ypg schrieb:
One question you didn’t answer: is your wife’s 2300 hours full-time?Yes, 2300 hours were full-time before the child.
Your first realization should be that your income for the construction project in this area is unfortunately significantly below average, and the planning must be adjusted accordingly, even before the interest rate increases.
Smaller, without a basement and without a carport, but with a shed.
Smaller, without a basement and without a carport, but with a shed.
E
EinmalimLeben12 Jan 2023 14:10I think your main problem right now is that your current apartment is too small. Of course, you want to provide something for a child as well, but at the toddler stage, having a separate bedroom isn’t necessarily essential. If that’s not an option for you, I would first solve that issue by looking for a suitable rental apartment. It might not sound as appealing as buying, but it will solve your immediate problem.
Then I would focus on the topic of building and, as mentioned before, reduce the size of the house! Really calculate how many square meters (square feet) are actually needed per room. We are building a 140 sqm (1505 sq ft) house without a basement, garage, or anything else, with two young children, and our monthly income is higher than yours. Lower your expectations, otherwise it really won’t work at this time!
Then I would focus on the topic of building and, as mentioned before, reduce the size of the house! Really calculate how many square meters (square feet) are actually needed per room. We are building a 140 sqm (1505 sq ft) house without a basement, garage, or anything else, with two young children, and our monthly income is higher than yours. Lower your expectations, otherwise it really won’t work at this time!
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