ᐅ Is the dream of owning your own home realistic?

Hello,

you are both still very young, which is a great advantage because you have a lot of time to repay the loan. This means your installments will be small.
However, check if extra repayments are possible, as this can be beneficial.

Regards, Gerd

Hello, thanks for the answers. Yes, that is the net salary. I'm not very familiar with building savings contracts, I think none of them will be due for repayment by then... What is the current interest rate? We originally didn’t want to build a prefabricated house, since it is often said that these can be quite noisy. With a "sweat equity mortgage," I could manage quite a bit because I am skilled in DIY, though I’m not a bricklayer...

Would it maybe be better to pay for the land first and then start building the house? Or should everything be financed together? Best regards, Chris

Chris schrieb:
Hello, my girlfriend (22) and I (23) want to build a house in 2 years. At the moment, we have equity of 20,000 euros and plan to increase it to 35,000 euros in 2 years. We each have 2 home savings contracts running. The plot of land would cost 50,000 euros. We want to build a "normal" single-family house without many extras for 180,000 euros. Is this realistic, or will it be more expensive? My salary is 1,450 euros and my girlfriend’s is 1,150 euros. Since we both still live at home, we don’t have to pay rent. We don’t have any plans for children yet 🙂. I’m not very familiar with this area but would appreciate some good advice from you. Thanks in advance. Best regards, Chris

Hello to you both,

What kind of home savings contracts do you have and how long have they been running? What are their amounts?

Have you calculated the total costs for your project, including the house, land with additional costs (notary and court fees around 5%), possibly a broker, and additional building costs (surveying, seismic or snow load zones, disposal fees, etc.)? I would be happy to help you prepare a reasonable overall cost estimate.

Best regards, gru

Hello Gru,
I have one home savings contract for 50,000 euros, which has been running since 9.3.07, with monthly payments of 200 euros. My other home savings contract for 20,000 euros has been running since 23.8.01, with monthly payments of 50 euros. My girlfriend has one for 15,000 euros (running since 2004) and another for 25,000 euros (running since mid-2008). We haven’t done any calculations ourselves yet, as we are not very familiar with this area and would probably end up with inaccurate results anyway 🙂. That’s why I reached out to a forum like this. I also haven’t contacted an expert yet, since it will still be 2-3 years before we plan to start. We would really appreciate it if you could provide us with an overall cost breakdown; that would definitely help us a lot. Thanks in advance. Best regards, Chris

Hello,

With banks, you usually get better interest rates if you have more equity. It’s often said that having 20% equity yourself is enough, but then you end up paying more right away. Most advisors don’t even mention this! 🙁

Best regards,
Simon47

Hello Gru,
Will you still provide us with a total cost summary, or is the information I gave you not enough? 🙂
Best regards, Chris