After all the feedback that a standard house with 120 sqm (1300 sq ft) and two floors plus land will likely not be available for less than 300,000 euros, and that I should rather focus on buying a condominium, I have looked at a few condos in the past weeks, but none of them were even remotely suitable. I am single and imagine living in about 80 to 90 sqm (860 to 970 sq ft) with three rooms. Prices in the Augsburg surrounding area:
Prices for new condos in rural areas: 3000 euros per sqm (279 sq ft)
Prices for new condos in (small) towns: 3500 to 4500 euros per sqm (325 to 418 sq ft)
Prices for older condos in rural areas: 2500 euros per sqm (232 sq ft)
Prices for older condos in (small) towns: 3000 to 3500 euros per sqm (279 to 325 sq ft)
So, in the best case, I would pay 200,000 euros plus additional purchase costs for an older condo with 80 sqm (860 sq ft), but I would likely need to budget for new flooring, possibly some windows, and potential upcoming repairs to the building’s facilities (underground parking, stairwell). This means the total cost in the best case would be around 220,000 euros for a used apartment with 80 sqm (860 sq ft) and three rooms.
Many sellers of new condos now want 270,000 euros for apartments that will only be finished at the earliest in 1.5 years.
And I keep thinking, this can’t be right??? So I reviewed my budget again and cut some expenses (streaming services, clothing subscriptions, expensive phone contract...). I can afford 1000 euros per month and I have a permanent civil service job.
New plan: a “single house”
a) Buy a plot of land with 300 to 400 sqm (3200 to 4300 sq ft) for 80,000 to 100,000 euros
b) Buy a simple prefab house without luxury, about 90 sqm (970 sq ft) without a basement, turnkey (including additional building costs, painting, and tiling) for 180,000 euros.
My questions to the community here:
1. Do you think this plan is realistic?
2. How would you proceed?
Would you meet with the well-known prefab house manufacturers?
Or local construction companies first? Or an architect?
[Feel free to send recommendations or warnings via PM]
3. Is there an aspect I seem to have completely overlooked or forgotten?
Thank you very much in advance.
Prices for new condos in rural areas: 3000 euros per sqm (279 sq ft)
Prices for new condos in (small) towns: 3500 to 4500 euros per sqm (325 to 418 sq ft)
Prices for older condos in rural areas: 2500 euros per sqm (232 sq ft)
Prices for older condos in (small) towns: 3000 to 3500 euros per sqm (279 to 325 sq ft)
So, in the best case, I would pay 200,000 euros plus additional purchase costs for an older condo with 80 sqm (860 sq ft), but I would likely need to budget for new flooring, possibly some windows, and potential upcoming repairs to the building’s facilities (underground parking, stairwell). This means the total cost in the best case would be around 220,000 euros for a used apartment with 80 sqm (860 sq ft) and three rooms.
Many sellers of new condos now want 270,000 euros for apartments that will only be finished at the earliest in 1.5 years.
And I keep thinking, this can’t be right??? So I reviewed my budget again and cut some expenses (streaming services, clothing subscriptions, expensive phone contract...). I can afford 1000 euros per month and I have a permanent civil service job.
New plan: a “single house”
a) Buy a plot of land with 300 to 400 sqm (3200 to 4300 sq ft) for 80,000 to 100,000 euros
b) Buy a simple prefab house without luxury, about 90 sqm (970 sq ft) without a basement, turnkey (including additional building costs, painting, and tiling) for 180,000 euros.
My questions to the community here:
1. Do you think this plan is realistic?
2. How would you proceed?
Would you meet with the well-known prefab house manufacturers?
Or local construction companies first? Or an architect?
[Feel free to send recommendations or warnings via PM]
3. Is there an aspect I seem to have completely overlooked or forgotten?
Thank you very much in advance.
Grym schrieb:
You pay 7,200 EUR in annual base rent? And want to buy/build for 270,000 EUR?
That’s an incredible ratio of 37.5. Hold on. He’s not buying his own condominium for 270,000 EUR. (At least I hope not.)
A ratio of 15 to 20 is economically reasonable for rental properties; anything higher is basically a break-even scenario but still acceptable. That’s a guideline for investment properties, but since he plans to live there himself, the actual value is higher.
Best regards
Dirk Grafe
Grym schrieb:
?..
Then you have a completely unsellable property (90 sqm (970 sq ft) detached house – roughly as marketable nowadays as Nokia cell phones) and a large loan.
ok.Are you now suffering from arrogance and delusions of grandeur because you “finished” your city villa in 1.5 years?
There are also other target groups in the detached house sector, not just young small families!
Regards, Yvonne
No, but there is simply a market, and it is primarily, though not exclusively, driven by families with children.
For a family, a 90 sq m (970 sq ft) house is simply too small.
The majority of singles are renters. It will be much harder for him to sell the house than a standard single-family home. And singles who want to be homeowners tend to be wealthier singles, for whom 90 sq m (970 sq ft) is also somewhat small. Moreover, singles tend to show strong urbanization trends, so a property in Augsburg is more in demand than one in a village or small town.
For a family, a 90 sq m (970 sq ft) house is simply too small.
The majority of singles are renters. It will be much harder for him to sell the house than a standard single-family home. And singles who want to be homeowners tend to be wealthier singles, for whom 90 sq m (970 sq ft) is also somewhat small. Moreover, singles tend to show strong urbanization trends, so a property in Augsburg is more in demand than one in a village or small town.
S
Steffen8014 Feb 2017 08:11Grym schrieb:
You pay 7,200 EUR rent per year excluding utilities? And you want to buy/build for 270,000 EUR?
That results in an incredible ratio of 37.5.
A ratio of 15 to 20 makes such an investment economically justifiable, anything higher is more of a break-even scenario but still acceptable.I don’t understand that. What is this ratio supposed to represent? In our case, it is 125.6 (7,800 EUR rent excluding utilities).
Regards, Steffen
P
Peanuts7414 Feb 2017 08:15ypg schrieb:
Regarding point 3.
Yes, you are ignoring all the answers that have been given to you here over the past 2 years.
Have you ever been to a financial consultation?
It also matters what a financing bank calculates as your living expenses allowance. If you bring home a net income of 2000 (about 2200 USD), you won’t be granted a loan with monthly repayments of 1000 (about 1100 USD). (By the way, there was also a tip that if small expenses like mobile phone or TV subscription have to be cut from your ongoing costs, a house does not necessarily increase your quality of life.)
Then there is the aspect that only one salary is available as collateral.
Your equity of 30,000 (about 33,000 USD) covers the kitchen, additional purchase costs for the plot, and a buffer. That means 100% financing!
The Danwood house with 84 sqm (about 900 sq ft) (actually turnkey, but without satellite system and mailbox) costs just under 115,000 (about 126,500 USD). The foundation slab is 15,000 (about 16,500 USD), making a total of 130,000 (about 143,000 USD). Estimated transport costs of 5,000 (about 5,500 USD)… → 135,000 (about 148,500 USD).
Additional construction costs 40,000 (about 44,000 USD)… → 175,000 (about 192,500 USD)
Outdoor landscaping must be included in the calculation: a cheap 7,000 (about 7,700 USD) for yard, terrace, and lawn seeding… → 182,000 (about 200,200 USD)
You get an energy saving ordinance-compliant house without any fancy technology, without roller shutters, with two standard power outlets in the kitchen and one in the bathroom. Apparently, there is no outdoor power outlet or water tap either?! And the exterior plaster will be covered by algae after 3 years.
On top of that comes the cost of the plot of land from... x.
Regards, YvonneWhy will the exterior plaster be covered by algae after 3 years?
Does it have to be a prefab house? Town & Country also builds nationwide in Germany.
In Augsburg, a turnkey bungalow costs about 140,000 € (about 154,000 USD).