ᐅ Building a House Approaching 60? Risks of Building or Buying a Home.
Created on: 16 Oct 2014 14:16
R
ruedigold
Before my first post: first, a kind greeting to all the friendly posters.
Until now, I was a firm tenant... because of flexibility, as well as financial and family reasons. Now, Mr. Draghi and his supporters have turned the world upside down: money is the cheapest thing you can buy.
For a house building project, I can put my substantial rent into the balance and add some of my own money. With 40% equity properly secured, such a house (well, 60% would still belong to the bank) would probably make economic sense. I lose my flexibility, but I no longer need it as I used to.
I understand as little about real estate as about cars. Both are necessary assets that take a big bite out of your wallet and cause trouble. Still, both have their appeal. For the first time, I am seriously considering what it would mean to own a house, that is, to have one built, because I cannot contribute any work myself.
What bothers me are the risks of building or buying a house. Again, I use the car comparison. With a car, I get 100% delivered as ordered. In case of defects, there are a few attempts to fix them, then the vehicle goes back to the seller. But how is it with a house? Consumer protection is virtually nonexistent.
Nevertheless, given the circumstances, it seems worth a try. I am making a plan now. First, I will visit the model home village in Frechen. Already there, I have the uneasy feeling that I will be pretty much alone with my questions and doubts.
That is why I have my first strategic thought at all, and thus this post here: I need advice. Someone who can advise me reliably based on their own long-term experience. Someone who knows the pitfalls that a newcomer stumbles over. An architect? Why do I need an architect if the house is delivered by the prefab house manufacturer and, as the contract stipulates, just set up? What could an architect tell me?
Then I read that contracts with house manufacturers often contain serious defects because services are not listed. That guarantees trouble. I want to avoid that proactively at all costs.
In the manufacturers’ brochures, I only ever see houses. But what about the garages? Where do the four trash bins go? Where do my bikes fit? Where do I keep my grill in winter and in summer? My neighbors with a semi-detached house plus garage often have three cars parked everywhere except in the garage. The garage is the missing storage room in the house. Was all of this originally planned by an architect?
I understand so little of this that a building project still intimidates me. How do people with experience view the picture I have painted here? I would really appreciate your insight, thank you very much.
Until now, I was a firm tenant... because of flexibility, as well as financial and family reasons. Now, Mr. Draghi and his supporters have turned the world upside down: money is the cheapest thing you can buy.
For a house building project, I can put my substantial rent into the balance and add some of my own money. With 40% equity properly secured, such a house (well, 60% would still belong to the bank) would probably make economic sense. I lose my flexibility, but I no longer need it as I used to.
I understand as little about real estate as about cars. Both are necessary assets that take a big bite out of your wallet and cause trouble. Still, both have their appeal. For the first time, I am seriously considering what it would mean to own a house, that is, to have one built, because I cannot contribute any work myself.
What bothers me are the risks of building or buying a house. Again, I use the car comparison. With a car, I get 100% delivered as ordered. In case of defects, there are a few attempts to fix them, then the vehicle goes back to the seller. But how is it with a house? Consumer protection is virtually nonexistent.
Nevertheless, given the circumstances, it seems worth a try. I am making a plan now. First, I will visit the model home village in Frechen. Already there, I have the uneasy feeling that I will be pretty much alone with my questions and doubts.
That is why I have my first strategic thought at all, and thus this post here: I need advice. Someone who can advise me reliably based on their own long-term experience. Someone who knows the pitfalls that a newcomer stumbles over. An architect? Why do I need an architect if the house is delivered by the prefab house manufacturer and, as the contract stipulates, just set up? What could an architect tell me?
Then I read that contracts with house manufacturers often contain serious defects because services are not listed. That guarantees trouble. I want to avoid that proactively at all costs.
In the manufacturers’ brochures, I only ever see houses. But what about the garages? Where do the four trash bins go? Where do my bikes fit? Where do I keep my grill in winter and in summer? My neighbors with a semi-detached house plus garage often have three cars parked everywhere except in the garage. The garage is the missing storage room in the house. Was all of this originally planned by an architect?
I understand so little of this that a building project still intimidates me. How do people with experience view the picture I have painted here? I would really appreciate your insight, thank you very much.
R
ruedigold18 Oct 2014 20:05Hello building expert, your due diligence seems to have been successful.
Just back from Frechen, with lots of impressions. We have to forget what we previously thought we knew about (prefabricated) houses. Ready-made, off-the-shelf, or the “Trabis” of houses—that apparently belongs to the past when it comes to prefabricated homes.
I also can’t imagine that, under this competitive pressure, exorbitant prices will be charged or that customers will be taken advantage of. If a company builds one to three houses per calendar day... there’s so much customer feedback that I don’t expect technical design flaws. That’s my initial gut feeling.
The independent sales consultants were quite interesting as well. Maybe that’s even better than dealing with employees. What I also like is that some offer a combination of land plus house; that saves me the trouble of searching, and I’m not shown land that wouldn’t suit the house they have in mind in its basic features.
I was inspired by young people who will have their plots next month but haven’t yet decided on which house they want. Based on the plot, they’ve already had to make some compromises about their house preferences because some options just aren’t feasible. That means the mistake I might make—buying the wrong plot for a house that then doesn’t fit—is eliminated upfront. This service is offered for a reasonable price (assuming that’s true, as I understand it). So two modules are already suitably linked: the land and the house.
Ah, another interesting topic for us was whether to have a basement or not. My opinion is simple: if there is enough storage space inside the house (or even in the garage), then the basement is the less favorable choice because it’s disproportionately expensive and riskier. Regarding a car, you’d say: unsprung mass...
By the way... garages were available to see, but no waste storage sheds... We have four different bins here, probably requiring about 2m³ (70 cubic feet) of space. Or do the manufacturers believe that homeowners just put their trash on the street?
Conclusion for today:
My intention to buy has simply doubled... from 1% chance to 2% 😉.
[tbc]
Just back from Frechen, with lots of impressions. We have to forget what we previously thought we knew about (prefabricated) houses. Ready-made, off-the-shelf, or the “Trabis” of houses—that apparently belongs to the past when it comes to prefabricated homes.
I also can’t imagine that, under this competitive pressure, exorbitant prices will be charged or that customers will be taken advantage of. If a company builds one to three houses per calendar day... there’s so much customer feedback that I don’t expect technical design flaws. That’s my initial gut feeling.
The independent sales consultants were quite interesting as well. Maybe that’s even better than dealing with employees. What I also like is that some offer a combination of land plus house; that saves me the trouble of searching, and I’m not shown land that wouldn’t suit the house they have in mind in its basic features.
I was inspired by young people who will have their plots next month but haven’t yet decided on which house they want. Based on the plot, they’ve already had to make some compromises about their house preferences because some options just aren’t feasible. That means the mistake I might make—buying the wrong plot for a house that then doesn’t fit—is eliminated upfront. This service is offered for a reasonable price (assuming that’s true, as I understand it). So two modules are already suitably linked: the land and the house.
Ah, another interesting topic for us was whether to have a basement or not. My opinion is simple: if there is enough storage space inside the house (or even in the garage), then the basement is the less favorable choice because it’s disproportionately expensive and riskier. Regarding a car, you’d say: unsprung mass...
By the way... garages were available to see, but no waste storage sheds... We have four different bins here, probably requiring about 2m³ (70 cubic feet) of space. Or do the manufacturers believe that homeowners just put their trash on the street?
Conclusion for today:
My intention to buy has simply doubled... from 1% chance to 2% 😉.
[tbc]
Hi,
regarding the search for a plot of land: this should be your first step and – very importantly – done independently of the house design. First, find a plot that you truly like, and only then plan the house. There are an estimated 15 reputable nationwide prefab home companies, each offering around 30 house designs. That already makes about 450 house options. Yes, I know this is a rough estimate 😉 The point is: you can find a house for every plot of land. The other way around is much more difficult.
Don’t let yourself be pressured into signing contracts too quickly!
Garbage bins:
The result is that in front of houses – often carefully planned by the homeowners themselves, who usually consider their house the most beautiful – an array of colorful plastic garbage bins stands, ruining the overall appearance. Yes, it is important to consider from the start how to best hide the garbage bins when planning the house and garage.
regarding the search for a plot of land: this should be your first step and – very importantly – done independently of the house design. First, find a plot that you truly like, and only then plan the house. There are an estimated 15 reputable nationwide prefab home companies, each offering around 30 house designs. That already makes about 450 house options. Yes, I know this is a rough estimate 😉 The point is: you can find a house for every plot of land. The other way around is much more difficult.
Don’t let yourself be pressured into signing contracts too quickly!
Garbage bins:
The result is that in front of houses – often carefully planned by the homeowners themselves, who usually consider their house the most beautiful – an array of colorful plastic garbage bins stands, ruining the overall appearance. Yes, it is important to consider from the start how to best hide the garbage bins when planning the house and garage.
B
Bauexperte20 Oct 2014 21:21Good evening,
Because — there are no difficult plots, only poor planning 😉
Best regards, Bauexperte
ruedigold schrieb:Paying close attention has never hurt. Although I’m starting to wonder if it really makes sense to reply to you, as it feels like the two of us are almost alone performing a pas de deux (entrance). I hope I’m not scaring off the other users, since I actually wanted to moderate and not hold “conversations” between just two people 😉
Hello Bauexperte, your due diligence seems to have been successful.
ruedigold schrieb:In my opinion, there is only one provider in the Rhineland (solid construction) that works with employees; similar to your favorite example, cars => salespeople with only a base salary.
The consultants/salespeople who operate independently were quite interesting. It might even be better than having employees in front of you.
ruedigold schrieb:You should definitely reconsider this point; "klblb" hits the nail on the head. The way you currently think about it, you will never find the “right” plot. It’s better to find a plot that suits your personal preferences and lifestyle and then build according to the site conditions and zoning plan.
... That means the mistake I could make, namely buying the wrong plot for a house that then doesn’t fit, is ruled out.
Because — there are no difficult plots, only poor planning 😉
Best regards, Bauexperte
In addition to the above points mentioned by Bauexperte and klblb, it should be noted that it’s not just the "small fee for the service." You also have to pay property transfer tax on the house itself (around 5%), depending on the state, and not only on the land.
Quite an expensive service that sounds "cheap"...
Quite an expensive service that sounds "cheap"...
R
ruedigold22 Nov 2014 20:45Alright... for those interested, otherwise this is just my non-building diary...
a) Today I looked at an existing house... it already started off questionable with the real estate agent saying it was a prefab house, but it was actually a self-built house made from Ytong blocks... supposedly built in 2010, but the energy report is from 2009. What exactly does the term "year built" mean for a house, like it does for a car?
Then the "energy certificate": it was issued by Ytong, seems like a blank check given to everyone who buys their blocks (unless it’s photoshopped). Whether the energy ratings are accurate would have to be measured first, I think. I already have doubts: the house uses about 160 square meters (1,722 square feet) for an energy cost of 120 euros per month. After installing a solar system later, it reduces the net cost to 80 euros. The owner also insulated between the rafters afterward. Apparently, the energy figures weren’t that great after all...
I would first have an official energy assessment and a property valuation done before buying this house.
The plot, location, 9-meter (30 feet) garage, landscaped garden, and attic storage are nice, but I don’t really like the house itself, so I wouldn’t want to move in. Bathroom with a basic DIY store sink, ceiling height only 2.50 meters (8.2 feet), no ventilation system, too many small rooms. You can also tell from the cheap textured wallpaper that the seller not only lost his wife but also ran out of money.
Conclusion: this only 4-year-old house would need a thorough upgrade to be ready to move in.
And I have to pay property tax on the land and the house. And the real estate agent’s fee—but if I understood correctly, starting in January the seller has to pay that?
As of today, it’s 1:0 for new build over (fairly speaking, this one) existing house.
b) Another provider, who builds brick by brick, mentioned an insurance policy connected with 4 or 5 interim inspections by TÜV that offers the builder (terrible euphemism for those who actually build; by the way, don’t women build houses? Are they called “female builders” then?) a guarantee promise. Supposedly it’s expensive but useful and reassuring. Is that true?
a) Today I looked at an existing house... it already started off questionable with the real estate agent saying it was a prefab house, but it was actually a self-built house made from Ytong blocks... supposedly built in 2010, but the energy report is from 2009. What exactly does the term "year built" mean for a house, like it does for a car?
Then the "energy certificate": it was issued by Ytong, seems like a blank check given to everyone who buys their blocks (unless it’s photoshopped). Whether the energy ratings are accurate would have to be measured first, I think. I already have doubts: the house uses about 160 square meters (1,722 square feet) for an energy cost of 120 euros per month. After installing a solar system later, it reduces the net cost to 80 euros. The owner also insulated between the rafters afterward. Apparently, the energy figures weren’t that great after all...
I would first have an official energy assessment and a property valuation done before buying this house.
The plot, location, 9-meter (30 feet) garage, landscaped garden, and attic storage are nice, but I don’t really like the house itself, so I wouldn’t want to move in. Bathroom with a basic DIY store sink, ceiling height only 2.50 meters (8.2 feet), no ventilation system, too many small rooms. You can also tell from the cheap textured wallpaper that the seller not only lost his wife but also ran out of money.
Conclusion: this only 4-year-old house would need a thorough upgrade to be ready to move in.
And I have to pay property tax on the land and the house. And the real estate agent’s fee—but if I understood correctly, starting in January the seller has to pay that?
As of today, it’s 1:0 for new build over (fairly speaking, this one) existing house.
b) Another provider, who builds brick by brick, mentioned an insurance policy connected with 4 or 5 interim inspections by TÜV that offers the builder (terrible euphemism for those who actually build; by the way, don’t women build houses? Are they called “female builders” then?) a guarantee promise. Supposedly it’s expensive but useful and reassuring. Is that true?
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