ᐅ Building because condominiums are becoming increasingly expensive
Created on: 23 Mar 2015 23:44
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Bauanfänger36
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
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
You don’t want or are unable to do any handyman work yourself, but you prefer not to live in a multi-family building. Condominiums in buildings with only a few units are not available in the area where you want to live. From this, you conclude that you have to build your own house – but why not simply buy an existing one? Some renovation work is usually necessary, but at least you already have a foundation to start with.
Basically, you can also rent; you don’t always have to buy right away. Choose a place you like and rent a house. After living there for a few years, if you still like the location, you will likely have met people and become aware when a house nearby is up for sale. This way, you can avoid high real estate agent fees, have no doubts about the location (since you’ll be familiar with it), and by then, you might also have a better idea of how many people you’ll eventually be living with. For now, you are alone, but that might not be the case forever...
Basically, you can also rent; you don’t always have to buy right away. Choose a place you like and rent a house. After living there for a few years, if you still like the location, you will likely have met people and become aware when a house nearby is up for sale. This way, you can avoid high real estate agent fees, have no doubts about the location (since you’ll be familiar with it), and by then, you might also have a better idea of how many people you’ll eventually be living with. For now, you are alone, but that might not be the case forever...
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Bauanfänger3616 Apr 2015 20:28@everybody: First of all, thank you very much for the helpful advice and ideas. I will now save rigorously for 2-3 years and see what opportunities arise. Until then, I definitely want to study the subject thoroughly and then decide whether I really need to build myself or if a used house would also be an option, as long as the price is right in the end.