ᐅ Building because condominiums are becoming increasingly expensive

I am 36 years old, single, and currently looking at condominiums. Seeing that prices in my area are steadily rising and some new three-room condos cost between 180,000 and 300,000 euros, I am considering buying a plot of land and having a small prefab house built. Unfortunately, there are hardly any condominiums in the rural areas, but there are affordable plots, sometimes for 100 euros per square meter, so I would have to pay around 50,000 euros for a small plot. From my online research, I found that there are already prefab houses available for about 120,000 euros, offering around 100sqm (1,076 sq ft). That would bring me to 170,000 euros, plus additional construction-related costs and furnishings, so I would end up around 220,000 euros, right?

Regarding finances: 220,000 euros is currently the absolute upper limit. I have a decent income and a very secure job, so I could afford roughly 1,000 euros per month for loan payments. I only have 20,000 euros in savings.

My questions:

1. Do you think my (naive?) rough calculation is realistic?

2. How can I find affordable and reliable prefab house suppliers?

3. What would you do as a complete beginner in homebuilding:

a) Save a few more years and read books/reviews about prefab houses and their providers?
b) Avoid building altogether because nothing decent is available for 220,000 euros?
c) Bite the bullet and buy a condominium?

Thank you very much for your help

Bauanfänger36

Hello Bauanfänger36

I can’t really give you any information about the costs.

Whether a prefabricated house or a traditionally built house on site is cheaper is something others will have to answer, as I have never dealt with this topic.

However, you can save some money by doing part of the work yourself. Although I imagine this might not be so easy with a prefab house.

I live in a house and would be very reluctant to live in a condominium/apartment. Because you often depend on the goodwill of others if you want to make changes. And if there are people who block everything out of sheer malice, you will probably regret not having built your own house eventually.

You mentioned that you are alone, but that could change anytime, even tomorrow. Then a child comes along, and having a garden becomes very useful to turn it into a playground for your child.

Personally, I would prefer to build a house, ideally with a basement to accommodate the heating system, washing machine, and similar equipment. A basement is also great for storage since it maintains a fairly constant temperature throughout the year.

Have a nice day

You should ask yourselves whether you will be happy living in the "small towns" in the long run. It is clear that well-off young people are buying condos in the cities like hotcakes because of the short distances.

A counter question, as a single person: Do you really want a house there, and if so, why?

Hello,

from my own experience, you probably won’t be able to do it that way.
I also started with a condo when I was single, but it became too small for two people, so we decided to build a house. Being single in a rural area can also be quite boring, but that depends on your personality. We live in a rural area too, but in a new development, so usually our neighbors are young families, which is quite okay.

I thought a budget of 500,000 euros (about 540,000 USD) would be sufficient, but now it has risen to around 540,000 euros (about 580,000 USD), and we are still far from finished.
Don’t underestimate items like bathroom fixtures, walls, flooring, landscaping, drainage, government fees (building permit / planning permission costs), kitchen, surveying, electrical work, garage, etc. Small things add up quickly.
Try to calculate everything carefully and add 10%, better 20% more to your budget—that way, you should be okay.

Our neighbor built a house for about 120,000 euros (about 130,000 USD) a year ago and is still working on the interior. It’s going to be some months before anyone can actually live in it. You really have to do a lot of work yourself here. As a single person, though, you don’t have pressure from a partner and can take it more relaxed.

Hope this helps!

@HilfeHilfe: I grew up in a small town, and if there were a condominium in a small, quiet complex, that would be interesting to me. But there isn't. In the small towns around here, I sometimes see prices between 180,000 and 300,000 euros for a condo. I want a house because I have already lived in apartment blocks for rent and didn’t like these buildings with 20-30 rental units.

@hg6806

Thanks for your assessment. The problem is that I have no DIY skills at all and really need to calculate for a fully finished house. So if I have to spend tens of thousands of euros more on contractors on top of the 120,000 euros, then this probably isn’t a realistic option for me anymore.

@Gartenfreund

I feel connected to nature and therefore want to live not only in a small, nature-friendly village but also have a small garden. I’m also afraid I wouldn’t be happy with a condo.

My problem is: I need to start getting more information somewhere. I just can’t get it into my head that I can’t find a small, affordable house somewhere...

Hello,

we have all been beginners at building at some point and have searched through forums, used internet searches, and before the internet existed, looked in business directories 😉
Jokes aside: Inform yourself by reading. Here or elsewhere, and build up a basic knowledge.
Then ask yourself why you want a condominium. A house would only be an alternative, you write, but then you absolutely want a garden...
I think as a single person with 20,000 you don’t necessarily have to chase property ownership as if you have to invest in "concrete gold."

Bauanfänger36 schrieb:
1. Do you think my (naive?) rough calculation is feasible?

No, @hg6806 has already listed the kinds of costs that can arise during construction.

Bauanfänger36 schrieb:
2. How do I find affordable and good providers for prefabricated houses?

Internet search, business directories...

Bauanfänger36 schrieb:
3. What would you do as a complete building beginner:

a) Save a few more years and read books/reviews about prefabricated houses and their providers?
b) Avoid building because there is nothing decent for $220,000?
c) Bite the bullet and buy a condominium?

a) Until you understand what an adequate foundation slab means and/or have saved 25-30% equity

I don’t find a condominium unreasonable. You can always rent it out or sell it if your situation changes.

I would also hire a real estate agent; many properties do not appear in classifieds or online portals. Also, look at neighboring towns: there is life beyond the town border 🙂