ᐅ Building a House Approaching 60? Risks of Building or Buying a Home.
Created on: 16 Oct 2014 14:16
R
ruedigold
Before my first post: first, a kind greeting to all the friendly posters.
Until now, I was a firm tenant... because of flexibility, as well as financial and family reasons. Now, Mr. Draghi and his supporters have turned the world upside down: money is the cheapest thing you can buy.
For a house building project, I can put my substantial rent into the balance and add some of my own money. With 40% equity properly secured, such a house (well, 60% would still belong to the bank) would probably make economic sense. I lose my flexibility, but I no longer need it as I used to.
I understand as little about real estate as about cars. Both are necessary assets that take a big bite out of your wallet and cause trouble. Still, both have their appeal. For the first time, I am seriously considering what it would mean to own a house, that is, to have one built, because I cannot contribute any work myself.
What bothers me are the risks of building or buying a house. Again, I use the car comparison. With a car, I get 100% delivered as ordered. In case of defects, there are a few attempts to fix them, then the vehicle goes back to the seller. But how is it with a house? Consumer protection is virtually nonexistent.
Nevertheless, given the circumstances, it seems worth a try. I am making a plan now. First, I will visit the model home village in Frechen. Already there, I have the uneasy feeling that I will be pretty much alone with my questions and doubts.
That is why I have my first strategic thought at all, and thus this post here: I need advice. Someone who can advise me reliably based on their own long-term experience. Someone who knows the pitfalls that a newcomer stumbles over. An architect? Why do I need an architect if the house is delivered by the prefab house manufacturer and, as the contract stipulates, just set up? What could an architect tell me?
Then I read that contracts with house manufacturers often contain serious defects because services are not listed. That guarantees trouble. I want to avoid that proactively at all costs.
In the manufacturers’ brochures, I only ever see houses. But what about the garages? Where do the four trash bins go? Where do my bikes fit? Where do I keep my grill in winter and in summer? My neighbors with a semi-detached house plus garage often have three cars parked everywhere except in the garage. The garage is the missing storage room in the house. Was all of this originally planned by an architect?
I understand so little of this that a building project still intimidates me. How do people with experience view the picture I have painted here? I would really appreciate your insight, thank you very much.
Until now, I was a firm tenant... because of flexibility, as well as financial and family reasons. Now, Mr. Draghi and his supporters have turned the world upside down: money is the cheapest thing you can buy.
For a house building project, I can put my substantial rent into the balance and add some of my own money. With 40% equity properly secured, such a house (well, 60% would still belong to the bank) would probably make economic sense. I lose my flexibility, but I no longer need it as I used to.
I understand as little about real estate as about cars. Both are necessary assets that take a big bite out of your wallet and cause trouble. Still, both have their appeal. For the first time, I am seriously considering what it would mean to own a house, that is, to have one built, because I cannot contribute any work myself.
What bothers me are the risks of building or buying a house. Again, I use the car comparison. With a car, I get 100% delivered as ordered. In case of defects, there are a few attempts to fix them, then the vehicle goes back to the seller. But how is it with a house? Consumer protection is virtually nonexistent.
Nevertheless, given the circumstances, it seems worth a try. I am making a plan now. First, I will visit the model home village in Frechen. Already there, I have the uneasy feeling that I will be pretty much alone with my questions and doubts.
That is why I have my first strategic thought at all, and thus this post here: I need advice. Someone who can advise me reliably based on their own long-term experience. Someone who knows the pitfalls that a newcomer stumbles over. An architect? Why do I need an architect if the house is delivered by the prefab house manufacturer and, as the contract stipulates, just set up? What could an architect tell me?
Then I read that contracts with house manufacturers often contain serious defects because services are not listed. That guarantees trouble. I want to avoid that proactively at all costs.
In the manufacturers’ brochures, I only ever see houses. But what about the garages? Where do the four trash bins go? Where do my bikes fit? Where do I keep my grill in winter and in summer? My neighbors with a semi-detached house plus garage often have three cars parked everywhere except in the garage. The garage is the missing storage room in the house. Was all of this originally planned by an architect?
I understand so little of this that a building project still intimidates me. How do people with experience view the picture I have painted here? I would really appreciate your insight, thank you very much.
R
ruedigold17 Oct 2014 14:43Cool... thanks for the kind replies...
Indeed, first we will write down what we need and want.
By nature, I tend to accept things I understand. On the other hand, I simply love life. A house is a technically complex structure. I certainly won’t want or be able to spend my time weighing the pros and cons of different types of walls. The manufacturer’s warranty and, for example, KfW 70 standard will be enough for me. Which wall construction achieves the standard doesn’t matter to me because I couldn’t judge it anyway. There is a 99% chance I won’t live there for 40 years; so much for durability 😉. My wife already asked: “What, wooden walls? And what if there’s a fire? I don’t want to move in then!”
As you see, the conviction work is not only up to me.
In that respect, your advice, ypg, is a good one. Two wings, easily accessible, two garages, storage room (basement or not, we’ll see). That would be the headline of a requirements specification.
Realistically, only a well-known prefab house manufacturer is an option, meaning everything built from a single source.
Side projects like landscaping will be awarded separately at a later time.
So one house, one contract, one signature, one price.
Like at a car dealership, sticking with my favorite comparison.
I’m not worried about financing for now; if something is missing, I can add more. Currently, the banker owes me money, not the other way around.
First, I need to know if I want something and what exactly I want or don’t want. Everything starts with a sensible project.
Therefore, Bauexperte, I will wait and see if the manufacturers can advise me well enough to give me a good feeling, since there are bound to be more people like me. I do expect professionalism. There are convincing reports in forums where people are 100% satisfied with their manufacturer. A professional consultant intimidates me a bit; their business model is to provide professional advice, but I don’t know if they do that in my best interest. Not everyone has a consultant-friend, like a lawyer-friend. A good friend from the past could have helped; but the marriage broke up, partly because of the (too expensive) house... not a good omen. Wife gone, house gone, back to renting. Hmm...
What still worries me is the building plot. I visited a new development area that has been under construction continuously for four years. Only those who built first now live without construction noise, but trucks still drive through for the rear neighbors. Those building in the current construction zone live on a building site for four years. If not their own, then their neighbors’ construction noise. That’s not very appealing. So it probably only leaves searching for an infill plot?
Indeed, first we will write down what we need and want.
By nature, I tend to accept things I understand. On the other hand, I simply love life. A house is a technically complex structure. I certainly won’t want or be able to spend my time weighing the pros and cons of different types of walls. The manufacturer’s warranty and, for example, KfW 70 standard will be enough for me. Which wall construction achieves the standard doesn’t matter to me because I couldn’t judge it anyway. There is a 99% chance I won’t live there for 40 years; so much for durability 😉. My wife already asked: “What, wooden walls? And what if there’s a fire? I don’t want to move in then!”
As you see, the conviction work is not only up to me.
In that respect, your advice, ypg, is a good one. Two wings, easily accessible, two garages, storage room (basement or not, we’ll see). That would be the headline of a requirements specification.
Realistically, only a well-known prefab house manufacturer is an option, meaning everything built from a single source.
Side projects like landscaping will be awarded separately at a later time.
So one house, one contract, one signature, one price.
Like at a car dealership, sticking with my favorite comparison.
I’m not worried about financing for now; if something is missing, I can add more. Currently, the banker owes me money, not the other way around.
First, I need to know if I want something and what exactly I want or don’t want. Everything starts with a sensible project.
Therefore, Bauexperte, I will wait and see if the manufacturers can advise me well enough to give me a good feeling, since there are bound to be more people like me. I do expect professionalism. There are convincing reports in forums where people are 100% satisfied with their manufacturer. A professional consultant intimidates me a bit; their business model is to provide professional advice, but I don’t know if they do that in my best interest. Not everyone has a consultant-friend, like a lawyer-friend. A good friend from the past could have helped; but the marriage broke up, partly because of the (too expensive) house... not a good omen. Wife gone, house gone, back to renting. Hmm...
What still worries me is the building plot. I visited a new development area that has been under construction continuously for four years. Only those who built first now live without construction noise, but trucks still drive through for the rear neighbors. Those building in the current construction zone live on a building site for four years. If not their own, then their neighbors’ construction noise. That’s not very appealing. So it probably only leaves searching for an infill plot?
B
Bauexperte17 Oct 2014 15:17Hello,
A "part" of my story. I am often asked if I could build a dream house for certain forum users. Usually, I decline, because it is important for me to be nearby quickly, so anything outside a radius of 80 km (50 miles) is out of the question. That my professional liability insurance would disapprove goes without saying. However, in 2011, a user (Chinese) was so persistent that I expanded my side business by adding “supervision until the start of construction.” This meant I not only thoroughly reviewed all documents but also negotiated with their builder on my client’s behalf. Today, my client lives happily in their condominium in Frankfurt.
So you see, professional building supervisors don’t have to be a bad choice. Since then, I have supported clients nationwide on their way to a new single-family house, and I have even experienced that in the end, we built the dream house 😀
Regards, Bauexperte
ruedigold schrieb:That’s the right attitude!
So, Bauexperte, I am going to wait and see if the manufacturers can advise me well enough to give me confidence,
ruedigold schrieb:No, unfortunately rather fewer…
because there will probably still be more people like me.
ruedigold schrieb:Yes, because you pay them for that; they must be independent and have only your best interests in mind. That also means they will point out if you are thinking something unreasonable 😉
A professional consultant actually intimidates me; because their business model is to provide professional advice, whether they do so in my interest, I don’t know.
A "part" of my story. I am often asked if I could build a dream house for certain forum users. Usually, I decline, because it is important for me to be nearby quickly, so anything outside a radius of 80 km (50 miles) is out of the question. That my professional liability insurance would disapprove goes without saying. However, in 2011, a user (Chinese) was so persistent that I expanded my side business by adding “supervision until the start of construction.” This meant I not only thoroughly reviewed all documents but also negotiated with their builder on my client’s behalf. Today, my client lives happily in their condominium in Frankfurt.
So you see, professional building supervisors don’t have to be a bad choice. Since then, I have supported clients nationwide on their way to a new single-family house, and I have even experienced that in the end, we built the dream house 😀
ruedigold schrieb:With your postal code, you really shouldn’t have any problems finding a plot. If I were you, I wouldn’t worry about that.
What still concerns me is the building plot.
Regards, Bauexperte
R
ruedigold17 Oct 2014 16:06Bauexperte schrieb:
No, unfortunately rather less so ... How should I understand this? Which category do I belong to ... and others, how should they be assessed? What distinguishes home builders, aside from their personal, private circumstances?
B
Bauexperte17 Oct 2014 16:48Hello,
I like to think that, being in my early 50s, I have gained a certain level of experience, including when it comes to assessing things based on what is written.
You are an adult, already experienced in life, probably having dealt with one or more challenging projects along the way. Importantly, you know your limits and understand the balance between discussion and accepting the status quo. You are likely good at negotiating, but without demanding the impossible, fully aware that no one is there to give away freebies.
Working with this type of person, who understands themselves as a temporary partner but expects that rightly, makes the job truly enjoyable.
I will describe the other types later, as I have just arrived at my destination.
Regards, Bauexperte
I like to think that, being in my early 50s, I have gained a certain level of experience, including when it comes to assessing things based on what is written.
You are an adult, already experienced in life, probably having dealt with one or more challenging projects along the way. Importantly, you know your limits and understand the balance between discussion and accepting the status quo. You are likely good at negotiating, but without demanding the impossible, fully aware that no one is there to give away freebies.
Working with this type of person, who understands themselves as a temporary partner but expects that rightly, makes the job truly enjoyable.
I will describe the other types later, as I have just arrived at my destination.
Regards, Bauexperte
B
Bauexperte17 Oct 2014 23:13Good evening,
Edit:
Yvonne just pointed out to me that the description of the "Crazy ones" could be misunderstood. Here is a clearer explanation:
Regards, Bauexperte
ruedigold schrieb:As I promised, here are some highlights from my professional life to conclude:
What distinguishes home builders, aside from their personal, private situation?
- Know-it-alls: never had any real contact with the topic of home building but thanks to Aunt Google, forums, and the like, consider themselves experts.
- Crazy ones: own an existing property and insist that the new house must be fully completed and the current one sold before any contractually agreed payments are made.
- Heirs to large fortunes: a very challenging clientele, because building a house for them requires insider knowledge of currently popular celebrities. They often act as if they are the center of the universe.
- Representatives: the bride’s retired father (the client’s father) sits at the table, and if the bride and groom aren’t careful, the father’s house gets planned instead of the client’s single-family house. Very exhausting, especially if the father was an engineer during his career.
- Fears: every aspect of the construction contract, room layout, fixed price, and general contractor was discussed and approved multiple times. But they keep delaying the signature… just in case a better offer is waiting in the mailbox.
- Naïve ones: all aspects of the home build, ancillary costs, and price/performance ratio in the new build were discussed for hours. Then a cheap provider comes along, and only the price in the bottom right corner matters—basically, all the advice was for nothing. Such people are often found in forums complaining about their decisions.
- "At xyz it was like this" - these people are consistently negative and simply resistant to advice
- Down-to-earth: whether millionaire or worker, they are always firmly grounded. They share the willingness to contribute to the success of the home building project and are ready to make compromises if necessary. Building a house means finding compromises (note: wealthy people did not earn their money by spending it).
- Craftsmen: a group that often overestimates their own abilities
- Teachers, lawyers & tax officers: contrary to popular belief, a very pleasant clientele
- Civil servants in general: depends on the case... 😉
- to be continued
Edit:
Yvonne just pointed out to me that the description of the "Crazy ones" could be misunderstood. Here is a clearer explanation:
- Crazy ones: own an existing property and insist that the new house must be fully completed and the current one sold before any contractually agreed payments are made. Meaning: they look for a building partner, sign a construction contract, want to build the new house at the general contractor’s expense, and dream of paying only after their own existing property is sold to the highest bidder.
Regards, Bauexperte
Similar topics