Hello everyone,
I’ve already read some interesting threads here and now I’d like to ask a question myself:
About me: I’m 28 years old and married—no children yet, but we do want some in the future. My husband and I have been searching for properties, plots of land, etc., for about 2.5 months. We are quite open to options like condominiums, building a new home on a lot, or an existing property.
We are both industrial engineers and currently earn a combined gross annual income of 120,000 EUR. Our current savings amount to 120,000 EUR. We only finished our master’s degrees 3 and 4 years ago. Right now, we live in 60 sq m (645 sq ft) for 1,000 EUR (about 1,000 USD) all-inclusive rent. It’s hardly possible to find cheaper here without significantly increasing the commute to work. Currently, we can bike to work.
At the moment, we are looking at a 1,200 sq m (12,917 sq ft) plot with a new build. The prefabricated house provider would be Bien-Zenker. Our meeting with them left a solid impression compared to two other manufacturers.
We have received an offer that includes almost everything: a 165 sq m (1,776 sq ft) house without a basement, a double garage, the land, and utility connections for just under 670,000 EUR. Something like the kitchen is, of course, not included. So we’re assuming about 700,000 EUR in total.
I am extremely uncertain whether we should proceed with this. Also, whether the financing will work out. Our main bank said it should be possible... but they would prefer us to have a guarantor. My in-laws would support us with about 30,000 EUR, but my parents wouldn’t help financially. My uncle could assist with a low-interest loan. Since all this came up so quickly, we still need to schedule more appointments to clarify the financing. Our decision deadline is about four weeks.
I wanted to ask if there are people here who have been in a similar situation or could offer an assessment.
Thank you very much!
I’ve already read some interesting threads here and now I’d like to ask a question myself:
About me: I’m 28 years old and married—no children yet, but we do want some in the future. My husband and I have been searching for properties, plots of land, etc., for about 2.5 months. We are quite open to options like condominiums, building a new home on a lot, or an existing property.
We are both industrial engineers and currently earn a combined gross annual income of 120,000 EUR. Our current savings amount to 120,000 EUR. We only finished our master’s degrees 3 and 4 years ago. Right now, we live in 60 sq m (645 sq ft) for 1,000 EUR (about 1,000 USD) all-inclusive rent. It’s hardly possible to find cheaper here without significantly increasing the commute to work. Currently, we can bike to work.
At the moment, we are looking at a 1,200 sq m (12,917 sq ft) plot with a new build. The prefabricated house provider would be Bien-Zenker. Our meeting with them left a solid impression compared to two other manufacturers.
We have received an offer that includes almost everything: a 165 sq m (1,776 sq ft) house without a basement, a double garage, the land, and utility connections for just under 670,000 EUR. Something like the kitchen is, of course, not included. So we’re assuming about 700,000 EUR in total.
I am extremely uncertain whether we should proceed with this. Also, whether the financing will work out. Our main bank said it should be possible... but they would prefer us to have a guarantor. My in-laws would support us with about 30,000 EUR, but my parents wouldn’t help financially. My uncle could assist with a low-interest loan. Since all this came up so quickly, we still need to schedule more appointments to clarify the financing. Our decision deadline is about four weeks.
I wanted to ask if there are people here who have been in a similar situation or could offer an assessment.
Thank you very much!
N
nordanney24 Dec 2024 14:021. Is the plot only sold together with the house?
1b. If yes, real estate transfer tax applies to both together.
2. Does the plot actually exist, or is it just an example?
3. Why not buy the plot separately? Put all your income towards the repayment and build on it in a few years under better conditions.
4. How can everything be so cheap? If you live in an area with high rents, plots are usually expensive as well. At 400€/m² (about $37/sq ft), which would match your rent level, the plot alone already costs around half a million.
5. Why do you only have four weeks to decide? Planning a new house within such a short period is a no-go for me. That’s usually a recipe for losses (mostly money).
For ME, the decision would be clear. Either buy just the plot and repay quickly, or don’t take the whole package. The time pressure alone is a disaster. And suddenly paying 2,500 per month for a house that’s not yet finished (landscaping, furnishings, garden furniture, and many little things), when you’ve just started a job and still want children, requires a strong will. You also have to be ready for extreme compromises if finances get tight.
1b. If yes, real estate transfer tax applies to both together.
2. Does the plot actually exist, or is it just an example?
3. Why not buy the plot separately? Put all your income towards the repayment and build on it in a few years under better conditions.
4. How can everything be so cheap? If you live in an area with high rents, plots are usually expensive as well. At 400€/m² (about $37/sq ft), which would match your rent level, the plot alone already costs around half a million.
5. Why do you only have four weeks to decide? Planning a new house within such a short period is a no-go for me. That’s usually a recipe for losses (mostly money).
For ME, the decision would be clear. Either buy just the plot and repay quickly, or don’t take the whole package. The time pressure alone is a disaster. And suddenly paying 2,500 per month for a house that’s not yet finished (landscaping, furnishings, garden furniture, and many little things), when you’ve just started a job and still want children, requires a strong will. You also have to be ready for extreme compromises if finances get tight.
Hello Nordanney,
thank you for your assessment!
The plot is tied to the prefabricated house manufacturer. Apparently, the owners and Bien-Zenker have agreed that the land can only be sold through the manufacturer. That’s what we were told.
The property transfer tax should only apply to the land since the house is not yet built on it (this was also the advisor’s statement).
We currently live and work in the outskirts of a larger city, which is why we are renting.
The plot is about 15 minutes away from there, and the owners now need to sell (although I don’t know the reason), so the price per square meter is actually quite affordable.
The time pressure arises because all properties here sell very quickly.
thank you for your assessment!
The plot is tied to the prefabricated house manufacturer. Apparently, the owners and Bien-Zenker have agreed that the land can only be sold through the manufacturer. That’s what we were told.
The property transfer tax should only apply to the land since the house is not yet built on it (this was also the advisor’s statement).
We currently live and work in the outskirts of a larger city, which is why we are renting.
The plot is about 15 minutes away from there, and the owners now need to sell (although I don’t know the reason), so the price per square meter is actually quite affordable.
The time pressure arises because all properties here sell very quickly.
The best time to act is now, simply because points in the past are no longer accessible. Those who wait for improvements in the situation (whether economic conditions, financial markets, or political stability) will lose more time – and more reliably – than they can gain money.
No children yet = no parental leave yet means: undiminished income – good for financing but possibly disadvantageous for some types of subsidies. I would not start climbing the property ladder with the dream home, especially not one that is initially half-empty, as that sounds like a double mistake.
Does the plot really exist, and is it owned by the provider? – see here regarding the keywords “off-plan sale” and “plot service”; the tax trap of tied transactions has already been mentioned by the previous commenter.
Also: why “manufacturer”? – a “prefab” house is not finished faster, nor what other myths there may be.
Start with a small terraced house / semi-detached house; these are also available with 120 sqm (1,290 sq ft), and move when it gets too tight with the kids.
Unreliable talk aka blatant lie; the tax authority’s legal opinion will prevail here.
If it's that close, you should be able to find out the background reasons.
Urgency only exists in marketing; it is a seller-created illusion.
There is a simple countermeasure: don’t buy passively, and not in the market itself but next to it. See “11ant Barthel”.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
No children yet = no parental leave yet means: undiminished income – good for financing but possibly disadvantageous for some types of subsidies. I would not start climbing the property ladder with the dream home, especially not one that is initially half-empty, as that sounds like a double mistake.
Tine996 schrieb:
Currently, it’s about a 1200 sqm (13,000 sq ft) plot with a new build. The prefabricated house provider would be Bien-Zenker. The conversation made a solid impression compared to two other manufacturers.
We have received an offer that now includes almost everything:
House with 165 sqm (1,775 sq ft), without a basement, double garage, plot and development for just under 670,000 euros. Of course, something like the kitchen is still missing. So let’s assume 700,000 euros overall.
Does the plot really exist, and is it owned by the provider? – see here regarding the keywords “off-plan sale” and “plot service”; the tax trap of tied transactions has already been mentioned by the previous commenter.
Also: why “manufacturer”? – a “prefab” house is not finished faster, nor what other myths there may be.
Start with a small terraced house / semi-detached house; these are also available with 120 sqm (1,290 sq ft), and move when it gets too tight with the kids.
Tine996 schrieb:
The plot is tied to the prefab house manufacturer. The owners and Bien-Zenker have apparently agreed that the land can only be sold through the manufacturer. That’s what we were told.
The property transfer tax should only apply to the land, since the house is not yet built (this was also the consultant’s statement).
Unreliable talk aka blatant lie; the tax authority’s legal opinion will prevail here.
Tine996 schrieb:
The plot is about 15 minutes away. The owners now need to sell (I don’t know why), which is why the price per square meter is actually quite cheap.
If it's that close, you should be able to find out the background reasons.
Tine996 schrieb:
The urgency comes from,
Urgency only exists in marketing; it is a seller-created illusion.
Tine996 schrieb:
because all real estate here sells within a very short time.
There is a simple countermeasure: don’t buy passively, and not in the market itself but next to it. See “11ant Barthel”.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
N
nordanney24 Dec 2024 14:21Tine996 schrieb:
The plot is tied to the prefabricated house manufacturer. The owners and Bien-Zenker apparently agreed that the land can only be sold through the manufacturer. At least, that's what we were told.
Property transfer tax should therefore only apply to the land, since the house is not yet built (this was also the advisor’s statement).And this lie is another reason why you shouldn’t build there. Pretty bold. And expensive for you.So: If the purchase of the land is “tied” to building with exactly one provider, what is that? It’s a tied transaction. Legally, this is treated as a single contract. Since 1999, it has been established in the law that transfer tax applies to both the land and the building.
The tax office will also send you a questionnaire on this… and of course, the bill.
A bit of light reading. You can also look it up yourself.
Oh, that is really surprising information! It wasn’t described like that before. Thanks for that!
The plot actually exists; we also visited the site, but the owner and the consultant know each other personally. I assume that’s why there’s some questionable undertone here. Allegedly, the owners live quite far away. They had leased the plot as a horse paddock but now need to sell it. The total land area is about 4,500 square meters (54,000 square feet) and is divided among three parties. Two of these are already reserved.
11ant: what do you mean by “next to the market”?
The minor issue: we have been looking for a semi-detached house and we either find very old ones from 1950–80 or newer ones from 1990–2000 priced at least 450,000, rather 500,000. A newer semi-detached house with 112 square meters (1,205 square feet), heating system 20 years old, costs 490,000 euros. My brother-in-law paid 700,000 euros for a semi-detached house with 140 square meters (1,507 square feet) in our hometown – also with a 30-year-old gas heating system.
The plot actually exists; we also visited the site, but the owner and the consultant know each other personally. I assume that’s why there’s some questionable undertone here. Allegedly, the owners live quite far away. They had leased the plot as a horse paddock but now need to sell it. The total land area is about 4,500 square meters (54,000 square feet) and is divided among three parties. Two of these are already reserved.
11ant: what do you mean by “next to the market”?
The minor issue: we have been looking for a semi-detached house and we either find very old ones from 1950–80 or newer ones from 1990–2000 priced at least 450,000, rather 500,000. A newer semi-detached house with 112 square meters (1,205 square feet), heating system 20 years old, costs 490,000 euros. My brother-in-law paid 700,000 euros for a semi-detached house with 140 square meters (1,507 square feet) in our hometown – also with a 30-year-old gas heating system.