I am single and have been considering ending my rental contract for some time now to buy my own place. I can afford to spend 800 to 900 euros per month. My current rent excluding utilities is 600 euros. I have 30,000 euros in equity. I am not very skilled in DIY or handywork, and I don’t have any friends who are craftsmen.
I live in the Augsburg suburbs.
Here are my thoughts:
1. A new condominium with 3 rooms, a garage, 80 sqm (860 sq ft), and a balcony in a village costs between 250,000 and 280,000 euros. The building has 6 units, and the monthly service charge is 250 euros. I could afford that well, and I would probably be finished just after reaching retirement age.
2. But then I think: If a new condo costs that much, then maybe I could buy a small plot of land with 300 sqm (3,230 sq ft) at 250 euros per sqm, which would be 75,000 euros. Then a turnkey prefab house without a basement but with a garage, size 100 sqm (1,076 sq ft), for 180,000 euros plus 30,000 euros in additional building costs? Similar price, but my own house.
3. Or don’t buy anything new: Older condominiums for 180,000 euros and that’s that. Problem: In this price range, there have been no nice 3-room apartments online for months at least.
What would you recommend?
Oh, and I also keep finding prefab houses with land from a well-known provider with 5 letters, advertised as turnkey for under 200,000 euros. But after the consultant didn’t follow up after a visit (I was probably not very decisive), that’s not really an option.
I live in the Augsburg suburbs.
Here are my thoughts:
1. A new condominium with 3 rooms, a garage, 80 sqm (860 sq ft), and a balcony in a village costs between 250,000 and 280,000 euros. The building has 6 units, and the monthly service charge is 250 euros. I could afford that well, and I would probably be finished just after reaching retirement age.
2. But then I think: If a new condo costs that much, then maybe I could buy a small plot of land with 300 sqm (3,230 sq ft) at 250 euros per sqm, which would be 75,000 euros. Then a turnkey prefab house without a basement but with a garage, size 100 sqm (1,076 sq ft), for 180,000 euros plus 30,000 euros in additional building costs? Similar price, but my own house.
3. Or don’t buy anything new: Older condominiums for 180,000 euros and that’s that. Problem: In this price range, there have been no nice 3-room apartments online for months at least.
What would you recommend?
Oh, and I also keep finding prefab houses with land from a well-known provider with 5 letters, advertised as turnkey for under 200,000 euros. But after the consultant didn’t follow up after a visit (I was probably not very decisive), that’s not really an option.
B
Bauanfänger3631 Jan 2017 19:42As you can see, my situation is somewhat complicated. It’s enough for an (overpriced) condominium but perhaps just not enough for a small prefab house.
Either I make compromises in my lifestyle to have more money available for the property, or I maintain my current lifestyle but without owning a house.
Either I make compromises in my lifestyle to have more money available for the property, or I maintain my current lifestyle but without owning a house.
Too much speculation. Avoid being misled—go to your local bank, one that knows you well; I hope you have one and not just an online-only institution—and discuss what is realistically possible. If they tell you, Mr. So-and-so, this is still feasible but that is not, don’t run off to a loan broker; believe them. Banks now have to approach loan advice very cautiously and conservatively, which is the right approach. Think of Spain or Portugal—many people have been financially ruined due to real estate bubbles and unrealistic expectations of continuous growth.
B
Bauanfänger3631 Jan 2017 19:55Keyword additional costs: When I calculate the additional costs for a small house based on a website example, I end up paying significantly less for a 100 m² (1,076 sq ft) house than for a condominium, which has household fees of 250 euros alone, where I also have to contribute to the elevator and underground parking.
If you understand additional costs as ongoing operating expenses, then yes. Ancillary building costs include property transfer tax, notary fees, court fees, additional earthworks costs on sloped sites—and where in Germany is it completely flat except in Western Pomerania and Friesland?—soil removal, temporary construction electricity and water, permit fees of around 800 euros (about 850 USD), costs for connecting gas, water, and electricity, driveway, terrace, painting, flooring, interior plastering, and the small extras. For example, a garage—cross that out. The garden can also be kept small; in many cases, the standard is enough, but the costs do add up. We calculate ancillary costs of 40,000 euros (about 42,000 USD) when the plot is already paid for. However, we have painters in the family and I know other tradespeople as well. Others here estimate 50,000 euros (about 52,500 USD).
Bauanfänger36 schrieb:
Professionally, I am currently somewhat tied to the region. I could try to get transferred upon request, but as a single person without social points, that’s not so easy. The house I would then have certainly isn’t suitable for a large family. But if I have the small house instead of the expensive condominium for 200 euros (about 220 USD) more per month, that makes sense.I missed this post. So if it could still matter, I would wait a bit :P
More can be done with two people. Also when it comes to financing.
Banks calculate differently than consumers do. They also like to have a second income as security — even though a civil servant’s salary is exempt from garnishment.