ᐅ 130 sqm detached house or single-family home within my budget of 220,000

nils1985 schrieb:


Is it even possible to build a detached house or a mobile home according to the specifications mentioned above?
Based on my online research, I can barely imagine it at the moment.
What construction time or total timeframe, starting from the land purchase, should one plan for?
Which companies would be interesting to contact?

Thank you in advance for your answers!

Hello!

As previous posters have already mentioned, with around 240,000 Euro you cannot build a house with the given price for the land (or rather, the money will be gone before the house is finished).

Please read the frequently posted thread about additional building costs here (by Bauexperte).

With a rough calculation, you will quickly realize that the amount left after deducting all costs for the actual house is so small that no provider will build it for you in 2016. Even doing your own work won’t help. There is an approximate shortfall of 70,000 to 100,000 Euro.

Calculate around 1,800 Euro per square meter (m²) (about 167 USD per square foot), with a lower standard around 1,500 Euro (139 USD per square foot).
Range: 195,000 - 234,000 Euro.
Plus land. Plus notary fees, property transfer tax, plus about 130 other items (see the additional costs thread)...

My tip: With the stated budget, you might be able to get a semi-detached or terraced house on the resale market. Take it as is and carry out adaptations or modernization over the years. Although this might already be quite tight—I don’t know your local market—but it could work. Another alternative is a condominium (apartment).

Best regards,
Thorsten

But that doesn’t matter – that’s exactly why you asked this question, because you have doubts about building a house and your finances.

Consider looking for an existing property or a condominium, if the latter suits you.

Thank you for the information.
Isn't it possible to reduce some of the costs through self-work? What about a shell house / turnkey home?

So, one question keeps bothering me. I earn 2400 and the bank says I can afford 800 for a house. Somehow, my approved loan amount seems very low to me.

nils1985 schrieb:
Thank you very much for the information.
Isn’t it possible to reduce some costs through personal work? What about a shell house?

I have experience with a shell house.

So I can give you some clear answers.

a) Shell house (1): It doesn’t work miracles. As mentioned before, check the additional construction costs. They exist just the same, and for some, the dream of a shell house has turned into a nightmare (--> construction ruin).

b) Personal labor: No, you can’t really reduce costs significantly this way. Unless you have 25-30 people (covering all trades required for house building including groundwork) who work for free continuously for 7-8 months (7 days a week) and bring their own materials and tools. Realistically, you can compensate between 5,000 and 20,000 through personal labor. The rest of these claims are just wishful thinking, pure fantasy (a few exceptions might prove the rule). Reality will catch up to everyone here.

c) Shell house: See a) and b): Not a solution.

The gap between your available capital and the required funds is too large.

The bank calculates living costs and other expenses according to standardized tables and follows the rules of Basel II and III, as well as your collateral and equity. The amount of 800,000 (units unspecified) seems totally realistic to me. Maybe another bank might offer more, but in my opinion, that’s a risk—a bet on yourself. Don’t make yourself unhappy.

Look for an existing property or a condominium.

Best regards
Thorsten

nils1985 schrieb:
So, a question keeps bothering me. I earn 2400 and the bank says I could afford 800,- for a house. Somehow, my approved loan seems very low.

Banks tell you what is possible. Whether it makes sense, they won’t tell you. The bank doesn’t care if you end up in personal bankruptcy. The bank will get your house. When it comes to financing, banks are driven by greed, not reason. You’re walking into a trap, and the bank is popping the champagne.

800 EUR (about 950 USD) from 2400 EUR (about 2850 USD) net seems low to you? Is that the family income? If so... I wouldn’t even consider an existing property. Are you thinking about additional costs? What about children? Car? And so on... Also, no equity is available.

Regards, Steffen