Hello,
We are a soon-to-be family of four (29, 27, 2, and expected in August 2015) and since a new residential development is currently planned in our village, we are wondering whether to take the step now or save for a few more years...
At the moment, we pay 550€ cold rent and save 700€ monthly in a savings account.
My husband is the sole earner as I am currently on parental leave and our second child is on the way. His salary is expected to increase well over the next few years since he has only four years of professional experience after university.
So far, we have been able to save 35,000€.
The building plot would cost around 80,000€ (including additional fees).
We plan to build about 150m2 (1,615 sq ft) with a basement and a double garage. What kind of costs should we expect?
Because of a two-year building obligation, we can’t first pay off the plot calmly; we would need to arrange the full financing now and start construction next year.
What do you think about this?
We are a soon-to-be family of four (29, 27, 2, and expected in August 2015) and since a new residential development is currently planned in our village, we are wondering whether to take the step now or save for a few more years...
At the moment, we pay 550€ cold rent and save 700€ monthly in a savings account.
My husband is the sole earner as I am currently on parental leave and our second child is on the way. His salary is expected to increase well over the next few years since he has only four years of professional experience after university.
So far, we have been able to save 35,000€.
The building plot would cost around 80,000€ (including additional fees).
We plan to build about 150m2 (1,615 sq ft) with a basement and a double garage. What kind of costs should we expect?
Because of a two-year building obligation, we can’t first pay off the plot calmly; we would need to arrange the full financing now and start construction next year.
What do you think about this?
Doc. Schnaggels has already given you a good overview of the costs, and it seems that your wishes are not compatible with your current income.
If you are not ready to give up the idea of building immediately, the question is whether you are willing or able to make compromises, such as skipping the basement (this can actually be more expensive than 40,000 due to special waterproofing measures), or building smaller than 150 square meters (with the right floor plan, 120 square meters can also feel very spacious), and a double garage does not have to be included from the start.
Despite everything, I think your budget will be very tight, and in your situation, I would currently not want to spend more than 800 or 900 EUR (around 870 to 980 USD) per month on a loan installment.
If you are not ready to give up the idea of building immediately, the question is whether you are willing or able to make compromises, such as skipping the basement (this can actually be more expensive than 40,000 due to special waterproofing measures), or building smaller than 150 square meters (with the right floor plan, 120 square meters can also feel very spacious), and a double garage does not have to be included from the start.
Despite everything, I think your budget will be very tight, and in your situation, I would currently not want to spend more than 800 or 900 EUR (around 870 to 980 USD) per month on a loan installment.
Nobody here wants to discourage the original poster’s dream of building a house, but this is a young family with nearly two small children, so the financing should be based on a solid foundation and not just optimistic calculations.
Unexpected costs can arise very quickly during the construction of a house, and in this case, it is important to have a financial buffer or the option for additional financing so that you don’t suddenly face financial insecurity.
You also shouldn’t use all of your available liquid assets for the financing (as the OP calculated here), since you don’t live only for the house construction!
Unexpected costs can arise very quickly during the construction of a house, and in this case, it is important to have a financial buffer or the option for additional financing so that you don’t suddenly face financial insecurity.
You also shouldn’t use all of your available liquid assets for the financing (as the OP calculated here), since you don’t live only for the house construction!
H
Haus_Traum23 Mar 2015 20:03We know that the salary will increase well over the next five years, but unfortunately, we don’t know exactly how fast. I will also return to work or take a part-time job as soon as the children are in kindergarten, but a third child is probably planned (which is why we want 150m2 (1600 sq ft)), so that might still take some time.
If we continue saving, we would have at least €30,000 more equity in three years, but by then everything will have become more expensive again, interest rates will have risen again, and the children will be older...
I also don’t think we can manage €350,000, so the house will have to be cheaper—but where to save?
If we continue saving, we would have at least €30,000 more equity in three years, but by then everything will have become more expensive again, interest rates will have risen again, and the children will be older...
I also don’t think we can manage €350,000, so the house will have to be cheaper—but where to save?
H
Haus_Traum23 Mar 2015 20:18Buying used would of course also be an option; however, in the village/area where we want to live, there is almost nothing available for sale, and we have been monitoring this for three years now.
EveundGerd23 Mar 2015 20:54I have the impression that the basic idea, namely to build in the new development area of the village, has already been decided.
Why does a plot of land in a village cost so much? How large is the plot supposed to be?
150 sqm (1,615 sq ft) is enough for four bedrooms even without a basement! It depends on the house type and the floor plan.
A double garage costs between 10,000 and 18,000 euros; in my experience, this amount is far from sufficient. I recommend budgeting at least 22,000 euros.
Alternatively, there are extra-large carports with space for just under 10,000 euros.
Alternatively: log beam garages... these are cheaper, but I have never seen one cheaper than a double garage. Costs for a single garage: just under 4,000 euros without installation.
I think that given the circumstances, studies and a small family, the equity is quite decent, but I would not include this amount in any potential financing. You will always need money from time to time, whether it is just for another vehicle or a washing machine.
Keep in mind that the child/children are still young, and over the course of their/your life, there will be some unforeseeable expenses to consider.
I would suggest having a discussion with a bank. They will give you a loan amount. Then you have your basis and can continue to plan.
Why does a plot of land in a village cost so much? How large is the plot supposed to be?
150 sqm (1,615 sq ft) is enough for four bedrooms even without a basement! It depends on the house type and the floor plan.
A double garage costs between 10,000 and 18,000 euros; in my experience, this amount is far from sufficient. I recommend budgeting at least 22,000 euros.
Alternatively, there are extra-large carports with space for just under 10,000 euros.
Alternatively: log beam garages... these are cheaper, but I have never seen one cheaper than a double garage. Costs for a single garage: just under 4,000 euros without installation.
I think that given the circumstances, studies and a small family, the equity is quite decent, but I would not include this amount in any potential financing. You will always need money from time to time, whether it is just for another vehicle or a washing machine.
Keep in mind that the child/children are still young, and over the course of their/your life, there will be some unforeseeable expenses to consider.
I would suggest having a discussion with a bank. They will give you a loan amount. Then you have your basis and can continue to plan.
Similar topics