Hello everyone.
I’m not quite sure whether I should just use an existing similar thread or if that would be disruptive and I should start my own. If starting a new thread is not appropriate, please let me know or move it. Thanks.
The situation: We (married, both 31 years old, currently living in Munich) have been looking for a change of living environment for some time. Everything affordable around the greater Munich area is, to put it mildly, not really our thing. Either it’s completely run-down, too small, or located too far “out in the suburbs,” and so on.
So, over the last few weeks, I have gone through numerous “building for dummies” guides and browsed land listings and house builders’ websites.
Now the question arises: Should we build our own house, or are our budget expectations completely unrealistic and we should forget about it? This is exactly where I hope to receive helpful advice from you.
Current situation:
* Him: Net income approx. 3700 €
* Her: Net income approx. 1400 €
* Loans or similar: none
* Equity (haven’t really started “saving” yet): approx. 30,000 €
* Additional income: From 2012 to 2015, an annual payment of 10,000 € (we are confident this will come from the sale of a property back home)
Desired situation:
* Purchase of a plot (around 400-500 m² (4300-5400 sq ft)) somewhat outside the city for about 100,000 € (plus additional costs). A suitable plot would be fully serviced and have a valid development plan (basement + ground floor + 1st floor + attic, with either a gable or hip roof).
* (Turnkey) house construction (around 120-150 m² (1300-1600 sq ft) living area + attached garage, ready to move in but no “luxury” requirements) from a provider with a fixed price guarantee / corresponding developer, for 180,000 - 200,000 € (plus additional costs). I have found offers, for example, from Weberhaus or Schwörerhaus.
Questions:
What do you think? I intend to keep the additional income of 10,000 € per year plus the 30,000 € equity as a “reserve,” especially for extra costs such as double rent, notary fees, etc. According to the calculations above, I expect about 300,000 € for land and house (excluding additional costs) and another 50,000 € for “other expenses.” Is that estimate for other expenses too low? Or is it unrealistic to expect that kind of house for that price?
I would appreciate any input or advice!
Best regards,
Andi
I’m not quite sure whether I should just use an existing similar thread or if that would be disruptive and I should start my own. If starting a new thread is not appropriate, please let me know or move it. Thanks.
The situation: We (married, both 31 years old, currently living in Munich) have been looking for a change of living environment for some time. Everything affordable around the greater Munich area is, to put it mildly, not really our thing. Either it’s completely run-down, too small, or located too far “out in the suburbs,” and so on.
So, over the last few weeks, I have gone through numerous “building for dummies” guides and browsed land listings and house builders’ websites.
Now the question arises: Should we build our own house, or are our budget expectations completely unrealistic and we should forget about it? This is exactly where I hope to receive helpful advice from you.
Current situation:
* Him: Net income approx. 3700 €
* Her: Net income approx. 1400 €
* Loans or similar: none
* Equity (haven’t really started “saving” yet): approx. 30,000 €
* Additional income: From 2012 to 2015, an annual payment of 10,000 € (we are confident this will come from the sale of a property back home)
Desired situation:
* Purchase of a plot (around 400-500 m² (4300-5400 sq ft)) somewhat outside the city for about 100,000 € (plus additional costs). A suitable plot would be fully serviced and have a valid development plan (basement + ground floor + 1st floor + attic, with either a gable or hip roof).
* (Turnkey) house construction (around 120-150 m² (1300-1600 sq ft) living area + attached garage, ready to move in but no “luxury” requirements) from a provider with a fixed price guarantee / corresponding developer, for 180,000 - 200,000 € (plus additional costs). I have found offers, for example, from Weberhaus or Schwörerhaus.
Questions:
What do you think? I intend to keep the additional income of 10,000 € per year plus the 30,000 € equity as a “reserve,” especially for extra costs such as double rent, notary fees, etc. According to the calculations above, I expect about 300,000 € for land and house (excluding additional costs) and another 50,000 € for “other expenses.” Is that estimate for other expenses too low? Or is it unrealistic to expect that kind of house for that price?
I would appreciate any input or advice!
Best regards,
Andi
Hello everyone ...
OK ... making progress again.
Yesterday we went out and looked at several residential developments. One of them really impressed us ... the location is great (a few kilometers further from work than planned, but these kilometers are on the highway, so it comes out the same and isn’t “too far” yet).
The price is affordable to cheap (depends on the actual terms).
Now we are considering the following options:
1. Buy the plot using a loan with the help of parents (better credit rating, so better terms) and start repaying it right away (possible).
2. Save some more equity until spring 2012 and then use this plus the existing plot as equity/creditworthiness to get favorable conditions. That way, about 70% of the house value would be financed, with the rest covered by equity plus subsidies. This would make around 250,000 for house construction available (+ 50,000 in the next 5 years).
3. From the moment of acquiring the plot, find a developer for a prefabricated or solid house (still undecided) including basement and possibly a garage (might skip the garage for now), request offers, and then possibly carry out the house construction in 2012 (turnkey).
4. Complete the work difference from turnkey to move-in ready by the end of 2012.
5. Move in.
Do you think this is realistic, or am I still stuck in my dream world? Somehow I have the feeling I’m seeing this too “simply” or I’m falling into the “typical homebuyer traps”!?
Thanks a lot (again) in advance.
Andi
OK ... making progress again.
Yesterday we went out and looked at several residential developments. One of them really impressed us ... the location is great (a few kilometers further from work than planned, but these kilometers are on the highway, so it comes out the same and isn’t “too far” yet).
The price is affordable to cheap (depends on the actual terms).
Now we are considering the following options:
1. Buy the plot using a loan with the help of parents (better credit rating, so better terms) and start repaying it right away (possible).
2. Save some more equity until spring 2012 and then use this plus the existing plot as equity/creditworthiness to get favorable conditions. That way, about 70% of the house value would be financed, with the rest covered by equity plus subsidies. This would make around 250,000 for house construction available (+ 50,000 in the next 5 years).
3. From the moment of acquiring the plot, find a developer for a prefabricated or solid house (still undecided) including basement and possibly a garage (might skip the garage for now), request offers, and then possibly carry out the house construction in 2012 (turnkey).
4. Complete the work difference from turnkey to move-in ready by the end of 2012.
5. Move in.
Do you think this is realistic, or am I still stuck in my dream world? Somehow I have the feeling I’m seeing this too “simply” or I’m falling into the “typical homebuyer traps”!?
Thanks a lot (again) in advance.
Andi