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?
H
Haus_Traum23 Mar 2015 21:16I wouldn’t put all my own capital in either. The plot is only 600m2 (6500 sq ft), but the price per square meter has now reached 125€ (about $136) even in our area.
The village has pretty much everything you need, like a kindergarten, school, supermarket, etc.
We could live without a basement as well, since we don’t have one now. However, we would need some storage space, which we’re thinking of placing above the garage.
Yes, a meeting with the bank would definitely make sense to find out how much is feasible.
The village has pretty much everything you need, like a kindergarten, school, supermarket, etc.
We could live without a basement as well, since we don’t have one now. However, we would need some storage space, which we’re thinking of placing above the garage.
Yes, a meeting with the bank would definitely make sense to find out how much is feasible.
Haus_Traum schrieb:
If we keep saving, we would have at least €30,000 more equity in 3 years, but by then everything will be more expensive again, interest rates will rise, and the kids will be older...
I also don’t think we can manage €350,000, so the house would need to be cheaper, but where to save? That is unfortunately quite true, and ideal conditions hardly ever exist. It’s still a tight budget, so costs should be reduced significantly.
First, consider the basement (there’s also storage space in the attic) and then, if possible, some of the work through self-build efforts. There are many cost-saving tasks during construction that someone with some DIY skills could handle.
Alternatively, there are companies offering complete self-build packages with material kits, but that would still require a considerable amount of work. In some cases, the technical trades can also be taken care of by those companies.
To save a noticeable amount here, you’ll have to put in a lot of labor, so whether you can or want to do that with two children in terms of time and skills is up to you to decide. It certainly won’t be easy...
I would personally push the garage to the very end of the plan. So if the tight budget works out, build it; if not, it can come a few years later.
B
backbone2323 Mar 2015 22:28Building costs may be rising, but at the moment it seems that interest rates are likely to remain low for the time being.
Currently, interest rates are stable, and this is expected to continue for a while. However, the annual savings rate is already offset by approximately 3% inflation per year (depending on the house price), which is very likely. The rent paid during this time also essentially disappears without any return.
I don’t want to give any advice here; everyone has to decide for themselves. For a loan of 1,000 with 2% interest and 2% repayment, you would get about 300,000 from the bank, with a theoretical term of 35 years if nothing is changed. However, many banks allow you to adjust repayment rates later on.
The 250 dollars of “surplus” should also continue to be saved since unexpected expenses always come up.
I don’t want to give any advice here; everyone has to decide for themselves. For a loan of 1,000 with 2% interest and 2% repayment, you would get about 300,000 from the bank, with a theoretical term of 35 years if nothing is changed. However, many banks allow you to adjust repayment rates later on.
The 250 dollars of “surplus” should also continue to be saved since unexpected expenses always come up.
B
Bauexperte23 Mar 2015 23:01Good evening,
Regards, Bauexperte
Lars881 schrieb:Agreed.
First the basement (there’s also storage space in the attic) and then, if possible, with some DIY work.
Lars881 schrieb:Such as... apart from drywall installation?
There are plenty of cost-saving tasks during construction that you could do yourself with a bit of craftsmanship.
Lars881 schrieb:You can’t be serious... or can you?
Alternatively, there are companies offering complete self-build concepts with material packages, but that would really be a lot of work. Possibly, the technical trades could then also be taken over by them.
Lars881 schrieb:Again, agreed.
I would generally postpone the garage to the very end of the planning. So, if the tight budget works out, it gets built; if not, it can come a few years later.
Regards, Bauexperte
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