Hello,
Actually, we have been looking for an existing property since last summer. According to our mortgage broker, we have a budget of around 300,000 (all-in), which a bank is likely to approve.
The market here in Schleswig-Holstein has also become very tight, and the houses on offer are often in need of renovation, so you easily exceed the budget (especially since many city dwellers laugh at our house prices and like to secure a holiday home here).
Now the question is whether it would be possible to build a house within our budget (assuming we can get a building plot). Our requirements are not very high; it doesn’t need to be a huge house. 120 square meters (1300 square feet) would be completely sufficient.
In a neighboring village, plots are currently being developed. The price isn’t fixed yet but is expected to be below 100 euros per square meter. The plots are about 700 square meters (7500 square feet) in size. Unfortunately, we have no experience with this topic at all, and I definitely don’t want to miscalculate.
We can only contribute limited personal labor. We are not unskilled, but both fully employed with a child, dog, and horse. What are your thoughts?
Actually, we have been looking for an existing property since last summer. According to our mortgage broker, we have a budget of around 300,000 (all-in), which a bank is likely to approve.
The market here in Schleswig-Holstein has also become very tight, and the houses on offer are often in need of renovation, so you easily exceed the budget (especially since many city dwellers laugh at our house prices and like to secure a holiday home here).
Now the question is whether it would be possible to build a house within our budget (assuming we can get a building plot). Our requirements are not very high; it doesn’t need to be a huge house. 120 square meters (1300 square feet) would be completely sufficient.
In a neighboring village, plots are currently being developed. The price isn’t fixed yet but is expected to be below 100 euros per square meter. The plots are about 700 square meters (7500 square feet) in size. Unfortunately, we have no experience with this topic at all, and I definitely don’t want to miscalculate.
We can only contribute limited personal labor. We are not unskilled, but both fully employed with a child, dog, and horse. What are your thoughts?
W
WilderSueden1 Jan 2021 22:04Nordlys schrieb:
Stormwater is not charged everywhere. But where, as here, there is a separate stormwater drainage system and its connection is mandatory, there is also a fee based on the roof area and sealed surfaces. The more paving, the higher the cost.It’s particularly clever to factor in cisterns with emergency overflow at a factor of 0.5 and to require retention cisterns instead of closed cisterns in new housing developments. Or to mandate permeable paving while still calculating it with a factor of 0.3. Around here, people optimize quite creatively.
The significant increases in property values have gone hand in hand with falling interest rates. But can interest rates continue to drop indefinitely? There must be a limit. No one can predict if or when interest rates will rise due to political and economic circumstances. A lot can happen, even within a "short" period of 10 years.
Take a look at the interest rate trends over the past 100 years. Rates this low have occurred before, and at times they rose above 10%. Eventually, governments may try to reduce their debt through inflation, which would cause interest rates to rise. Whether and how realistic this is depends on individual views. In any case, refinancing at 3% instead of the current 0.8% is within the realm of possibility. Those who have not paid down any principal will face serious difficulties then.
Anyone buying now cannot expect the same level of appreciation as someone who bought 10 years ago. With a low income and small pension, it is really important to make strong efforts to repay the loan, at least in the first few years. If interest rates remain stable or low, it should be possible to refinance favorably after 10 years, and the property will be fully paid off.
Take a look at the interest rate trends over the past 100 years. Rates this low have occurred before, and at times they rose above 10%. Eventually, governments may try to reduce their debt through inflation, which would cause interest rates to rise. Whether and how realistic this is depends on individual views. In any case, refinancing at 3% instead of the current 0.8% is within the realm of possibility. Those who have not paid down any principal will face serious difficulties then.
Anyone buying now cannot expect the same level of appreciation as someone who bought 10 years ago. With a low income and small pension, it is really important to make strong efforts to repay the loan, at least in the first few years. If interest rates remain stable or low, it should be possible to refinance favorably after 10 years, and the property will be fully paid off.
W
WilderSueden1 Jan 2021 22:38Nida35a schrieb:
Another reason not to build in new development areas: in older residential neighborhoods, these imaginative fees are rare.
Where I live, there are no stormwater fees, no road maintenance charges, no winter service, and it’s not a rural area—this is in Berlin. Regarding Berlin, I could complain again, but I better not.
As far as I know, stormwater charges in Baden-Württemberg are quite normal, even before the Greens came to power here. This applies not only to new development areas but to the entire municipality.
Nida35a schrieb:
Another reason to avoid new housing developments: in older residential areas, these imaginative charges are rare. We have no stormwater fees, no road fees, no winter maintenance, and we are not in a rural area, here in Berlin. We don’t have these costs in the new development either. Only sewage charges, and stormwater fees apply if no rainwater tank is installed. In return, you have to arrange your own winter maintenance.
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