ᐅ Affordable Homeownership: Buying an Existing House or a Prefabricated Home?
Created on: 30 Dec 2018 11:07
S
Soraya
Hello everyone,
we are not proud homeowners yet. We currently live in a large and actually very nice rental apartment, but we can’t stand the neighbors above and below us anymore.
At the moment, we are looking in every direction. Specifically: a new rental apartment or an affordable house to buy (or maybe even a prefabricated house?).
I personally prefer the idea of buying. My partner is a bit more uncertain about that (risks, etc.).
Our situation is that unfortunately we have very little equity right now (around 10,000 EUR). I have been self-employed for about ten years (average to good income), and my partner still needs about 7 months before becoming a permanent civil servant for life (upper service).
What do you think would be the best yet affordable solution?
My thoughts are as follows:
Renting an apartment means paying money month after month without effectively gaining anything.
Buying an older house offers many great possibilities later on, but also a lot of work.
Buying a prefabricated house means the quality might not be as good, but you get something newer that better meets your personal requirements.
I would be interested in your (experienced) opinions on this topic.
Best regards
we are not proud homeowners yet. We currently live in a large and actually very nice rental apartment, but we can’t stand the neighbors above and below us anymore.
At the moment, we are looking in every direction. Specifically: a new rental apartment or an affordable house to buy (or maybe even a prefabricated house?).
I personally prefer the idea of buying. My partner is a bit more uncertain about that (risks, etc.).
Our situation is that unfortunately we have very little equity right now (around 10,000 EUR). I have been self-employed for about ten years (average to good income), and my partner still needs about 7 months before becoming a permanent civil servant for life (upper service).
What do you think would be the best yet affordable solution?
My thoughts are as follows:
Renting an apartment means paying money month after month without effectively gaining anything.
Buying an older house offers many great possibilities later on, but also a lot of work.
Buying a prefabricated house means the quality might not be as good, but you get something newer that better meets your personal requirements.
I would be interested in your (experienced) opinions on this topic.
Best regards
A prefabricated house is not necessarily cheap, as you might think. Even a prefabricated house from Scanhaus Marlow or other budget providers is always on the same level as a solid or masonry-built house. A luxury prefabricated house from Okal Haus, Schwörer, or similar manufacturers is more expensive.
Existing properties: If you find something good, go for it. However, it depends on the location. In metropolitan areas, good and affordable homes rarely come onto the market; instead, they are often sold through personal connections or within families. Take a look at townhouses. They can be relatively inexpensive, and living there is not bad at all, especially if you have an end-terrace house. Karsten
Existing properties: If you find something good, go for it. However, it depends on the location. In metropolitan areas, good and affordable homes rarely come onto the market; instead, they are often sold through personal connections or within families. Take a look at townhouses. They can be relatively inexpensive, and living there is not bad at all, especially if you have an end-terrace house. Karsten
Well, it’s surprising how much prefab houses can differ. Thank you!
We’re fortunate to live and search in a fairly rural area in North Rhine-Westphalia (OWL). You can still find some bargains here – if you’re lucky.
I also think the idea of a townhouse is not bad. I will discuss it with my better half.
Many thanks, Nordlys.
We’re fortunate to live and search in a fairly rural area in North Rhine-Westphalia (OWL). You can still find some bargains here – if you’re lucky.
I also think the idea of a townhouse is not bad. I will discuss it with my better half.
Many thanks, Nordlys.
Hello!
Our situation is almost the same. We also preferred to buy, but the market doesn’t offer anything reasonable or modern, and by now we’ve both developed an aversion to old houses (too much need for renovation, not enough DIY skills). So we decided on a prefab house.
The quarrelsome “house dragon” living in the apartment below us was another reason to build a house. In 1–2 years, with a child, I really don’t want to deal with anticipated disputes in the stairwell.
The question is, with so little equity, is it even a realistic option? Have you already been to the bank?
Our situation is almost the same. We also preferred to buy, but the market doesn’t offer anything reasonable or modern, and by now we’ve both developed an aversion to old houses (too much need for renovation, not enough DIY skills). So we decided on a prefab house.
The quarrelsome “house dragon” living in the apartment below us was another reason to build a house. In 1–2 years, with a child, I really don’t want to deal with anticipated disputes in the stairwell.
The question is, with so little equity, is it even a realistic option? Have you already been to the bank?
We have made a tentative inquiry but have not had a proper consultation yet. My figures are actually quite solid (2017, nearly 100,000 profit). However, there were many other expenses and our friendly tax office, which takes a big portion. In addition, I simply need to maintain reserves for self-employment, which I will not use for house construction or home financing. So, in short: The bank was not opposed.
M
Mottenhausen30 Dec 2018 12:06What remains of the profit after taxes and after setting aside the necessary reserves?
Good numbers over the past 10 years have resulted in €10,000 (about $10,900) of equity, which equals a savings rate of €1,000 (about $1,090) per year. What do you plan to change in the coming years to increase the annual savings rate by a factor of twenty?
Good numbers over the past 10 years have resulted in €10,000 (about $10,900) of equity, which equals a savings rate of €1,000 (about $1,090) per year. What do you plan to change in the coming years to increase the annual savings rate by a factor of twenty?
Similar topics