Hello dear forum,
My partner and I plan to move into our own home in 2016, or at the latest in 2017. We are from Saxony-Anhalt and want to build within the Halle / Saale area. We are both 27 years old and have a small son (1 year). Currently, we pay around 500 € (about $530) monthly rent excluding utilities for our apartment. We currently have about 20,000 € (approximately $21,000) in savings, which could increase to around 30,000 € (about $32,000) by the end of 2016. Our monthly income totals approximately 3,500 € (around $3,700).
Should we start looking for a suitable plot of land now, or wait until the end of next year to save more equity? Another question is, where can you actually buy land? We would like to handle everything through a prefabricated house provider. Should we also have them assist us in finding a suitable plot? How much house can we approximately afford?
We would like around 125 m² (about 1,345 sq ft) of living space and roughly 500 m² (about 5,380 sq ft) of land.
There are many open questions, and surely more will arise 🙂
Best regards
My partner and I plan to move into our own home in 2016, or at the latest in 2017. We are from Saxony-Anhalt and want to build within the Halle / Saale area. We are both 27 years old and have a small son (1 year). Currently, we pay around 500 € (about $530) monthly rent excluding utilities for our apartment. We currently have about 20,000 € (approximately $21,000) in savings, which could increase to around 30,000 € (about $32,000) by the end of 2016. Our monthly income totals approximately 3,500 € (around $3,700).
Should we start looking for a suitable plot of land now, or wait until the end of next year to save more equity? Another question is, where can you actually buy land? We would like to handle everything through a prefabricated house provider. Should we also have them assist us in finding a suitable plot? How much house can we approximately afford?
We would like around 125 m² (about 1,345 sq ft) of living space and roughly 500 m² (about 5,380 sq ft) of land.
There are many open questions, and surely more will arise 🙂
Best regards
D
Doc.Schnaggls15 Jul 2015 16:44Hello Alex,
With the current information, you are unlikely to receive reliable answers.
It is especially important to know your monthly expenses to determine the maximum financing you can afford.
If you understandably prefer not to disclose this here in the forum, I recommend scheduling an appointment with your bank – the key question being "What can we afford and want to afford?"
You can buy plots either through popular online portals, from private sellers, real estate agents, or directly from local authorities or municipalities.
I would generally advise against having the house manufacturer search for the plot – in this case, you usually pay the property transfer tax not only on the land but on the total price of the land and house combined!
Best regards,
Dirk
With the current information, you are unlikely to receive reliable answers.
It is especially important to know your monthly expenses to determine the maximum financing you can afford.
If you understandably prefer not to disclose this here in the forum, I recommend scheduling an appointment with your bank – the key question being "What can we afford and want to afford?"
You can buy plots either through popular online portals, from private sellers, real estate agents, or directly from local authorities or municipalities.
I would generally advise against having the house manufacturer search for the plot – in this case, you usually pay the property transfer tax not only on the land but on the total price of the land and house combined!
Best regards,
Dirk
Ah, that’s good to know. I will call our local municipality first thing tomorrow.
Regarding our expenses:
650€ rent including utilities
70€ electricity
30€ internet
150€ insurance
350€ fuel
20€ mobile phone
400€ groceries
500€ miscellaneous
That should cover the main part. Loans do not need to be repaid.
What do you think about the idea of buying a plot of land now in 2015 (around 30,000€, which could be financed mostly with equity), then saving for about a year to add another 10,000€ in equity for the house construction? Or is it better to do everything all at once?
Regarding our expenses:
650€ rent including utilities
70€ electricity
30€ internet
150€ insurance
350€ fuel
20€ mobile phone
400€ groceries
500€ miscellaneous
That should cover the main part. Loans do not need to be repaid.
What do you think about the idea of buying a plot of land now in 2015 (around 30,000€, which could be financed mostly with equity), then saving for about a year to add another 10,000€ in equity for the house construction? Or is it better to do everything all at once?
If you are in a comfortable geographic or financial position to buy the plot of land, there is no reason not to purchase it – the bank will count it as collateral when financing.
If you receive an appealing offer including the plot, there is generally no problem with that either.
Just make sure you don’t get blinded by the price alone (this also applies later if you decide to plan the house separately), but always critically question what exactly is being built for you: starting with the construction methods and materials used, ceiling heights, energy efficiency standards, number of electrical outlets (as trivial as that may sound), and so on.
If you receive an appealing offer including the plot, there is generally no problem with that either.
Just make sure you don’t get blinded by the price alone (this also applies later if you decide to plan the house separately), but always critically question what exactly is being built for you: starting with the construction methods and materials used, ceiling heights, energy efficiency standards, number of electrical outlets (as trivial as that may sound), and so on.
B
Bieber081515 Jul 2015 21:30alex1304 schrieb:
Should we start looking for a suitable plot now, or wait until the end of next year to save up more equity? If you are sure that you will build and also know where it will happen, then you should start looking for plots today! First, create a search alert on a specialized online portal (which is free), regularly check the listings in the local daily newspaper, and inquire with the city or municipality about new residential areas—including those still in planning.
Whether and when you buy depends on: Do you like the plot? How is the price? Whether you can wait depends on: Will someone else buy your dream plot in the meantime? Will plots in your preferred location be more expensive or cheaper in 2016/17 than today? Or about the same? Is the property transfer tax still the same in 2016 (when are the regional elections again—there might be a pause until then...).
Owning your own plot is always (!) better than buying land from a developer. The reasons should be obvious... Your negotiating position is much stronger as a landowner.