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PatrickStar23 Mar 2016 23:18Hello Forum,
My wife and I have been searching for a suitable house for our small family for over a year, but so far without much success. We currently rent in Dresden, but would like to move to my wife’s home region (Lausitz). We have already viewed a few houses, but there were always various reasons after the first visit that led us to quickly agree not to buy. Often, it was due to conditions we would rather not live with—whether it was the layout of the rooms, the size of the plot, the renovation effort, and so on. We both believe that buying a house and the associated financial commitment should allow very little room for compromise.
Therefore, I have decided to take some time during my parental leave to learn more about building a house and to become more familiar with the topic. My goal is to gather information first, so that later I can decide whether building a house is even an option for us. As everyone here surely knows, the beginning is always difficult, but I hope that some of you might have information that could help me.
We are both not very skilled with DIY. That doesn’t mean we have “two left hands” combined, but our skills rarely go beyond painting a wall, assembling a wardrobe, and hanging a picture. However, among our relatives, there are a few craftsmen who would be willing to support us.
Currently, there are three of us, but we plan to have at least one more child. So the house should have enough space for at least two children.
I would appreciate any advice on which direction I should take next. Maybe a very rough roadmap would be great. As I said, I want to first find out what could be an option for us.
Thank you very much in advance for your replies.
Best regards!
PS: Please be patient if I have some wrong ideas. This is really my first contact with the topic 😉
My wife and I have been searching for a suitable house for our small family for over a year, but so far without much success. We currently rent in Dresden, but would like to move to my wife’s home region (Lausitz). We have already viewed a few houses, but there were always various reasons after the first visit that led us to quickly agree not to buy. Often, it was due to conditions we would rather not live with—whether it was the layout of the rooms, the size of the plot, the renovation effort, and so on. We both believe that buying a house and the associated financial commitment should allow very little room for compromise.
Therefore, I have decided to take some time during my parental leave to learn more about building a house and to become more familiar with the topic. My goal is to gather information first, so that later I can decide whether building a house is even an option for us. As everyone here surely knows, the beginning is always difficult, but I hope that some of you might have information that could help me.
We are both not very skilled with DIY. That doesn’t mean we have “two left hands” combined, but our skills rarely go beyond painting a wall, assembling a wardrobe, and hanging a picture. However, among our relatives, there are a few craftsmen who would be willing to support us.
Currently, there are three of us, but we plan to have at least one more child. So the house should have enough space for at least two children.
I would appreciate any advice on which direction I should take next. Maybe a very rough roadmap would be great. As I said, I want to first find out what could be an option for us.
Thank you very much in advance for your replies.
Best regards!
PS: Please be patient if I have some wrong ideas. This is really my first contact with the topic 😉
Well, first of all, you should clarify what is financially possible for you. Because without money, nothing happens 😉
You should assess how much you can afford to spend on housing each month (a household budget book is very helpful to get an overview of your monthly expenses). From that, you need to deduct the additional costs for heating, electricity, etc. Roughly estimated, these are usually between 350-500€ per month (about 380-570 USD). It’s a good idea to look up operating cost indices online and compare those values with the costs of your current rental to get a feel for what’s reasonable.
The amount left over then represents the money available for loan interest plus repayment—the monthly mortgage payment.
Right now, it’s generally estimated that you should assume an interest rate of 4-5%. (I think 5% is a bit high if you secure a longer fixed interest period.)
Let’s say you have 1000€ (about 1,140 USD) per month available for loan plus repayment:
Monthly payment / 5 (or 4) * 100 = loan amount
So, 1000€ / 5 (or 4) * 100 = 200,000€ (or 250,000€)
Then add your available equity, and that’s your financial framework.
From this, subtract the land purchase costs (including additional purchase fees), then deduct the building-related ancillary costs
( https://www.hausbau-forum.de/threads/liste-der-baunebenkosten.9737/ ).
If you also want to deduct an amount for your desired kitchen (if needed), landscaping, and carport/garage, you end up with a value X that is available solely for the actual construction costs of the house.
What hasn’t been considered yet is a contingency reserve, which you should roughly calculate as 5-10% of the total sum.
Also, you should research land prices in your desired area, as these represent a significant part of the costs.
You also need to clarify how large you want your house to be. It’s best to visit model homes in your region and get a sense for what you:
1. absolutely need
2. would like to have
3. would like to have but can do without
4. don’t need
5. don’t want
This way, you gradually approach the subject and figure out for yourself what your dream house should eventually look like.
I think that should be enough for a start; this will probably keep you busy for the next few weeks or months 😉
You should assess how much you can afford to spend on housing each month (a household budget book is very helpful to get an overview of your monthly expenses). From that, you need to deduct the additional costs for heating, electricity, etc. Roughly estimated, these are usually between 350-500€ per month (about 380-570 USD). It’s a good idea to look up operating cost indices online and compare those values with the costs of your current rental to get a feel for what’s reasonable.
The amount left over then represents the money available for loan interest plus repayment—the monthly mortgage payment.
Right now, it’s generally estimated that you should assume an interest rate of 4-5%. (I think 5% is a bit high if you secure a longer fixed interest period.)
Let’s say you have 1000€ (about 1,140 USD) per month available for loan plus repayment:
Monthly payment / 5 (or 4) * 100 = loan amount
So, 1000€ / 5 (or 4) * 100 = 200,000€ (or 250,000€)
Then add your available equity, and that’s your financial framework.
From this, subtract the land purchase costs (including additional purchase fees), then deduct the building-related ancillary costs
( https://www.hausbau-forum.de/threads/liste-der-baunebenkosten.9737/ ).
If you also want to deduct an amount for your desired kitchen (if needed), landscaping, and carport/garage, you end up with a value X that is available solely for the actual construction costs of the house.
What hasn’t been considered yet is a contingency reserve, which you should roughly calculate as 5-10% of the total sum.
Also, you should research land prices in your desired area, as these represent a significant part of the costs.
You also need to clarify how large you want your house to be. It’s best to visit model homes in your region and get a sense for what you:
1. absolutely need
2. would like to have
3. would like to have but can do without
4. don’t need
5. don’t want
This way, you gradually approach the subject and figure out for yourself what your dream house should eventually look like.
I think that should be enough for a start; this will probably keep you busy for the next few weeks or months 😉
Once you have a rough idea of your financial framework, the following approach is recommended:
You could visit various show home villages to get an impression of different houses and construction methods, to see what appeals to you, etc. This also offers a chance to make initial contacts.
Another option is to meet with an architect to discuss your general plans. Initial consultations are often free of charge.
It makes sense to explore options with prefabricated house manufacturers, developers, and architects to determine what suits you best.
You could visit various show home villages to get an impression of different houses and construction methods, to see what appeals to you, etc. This also offers a chance to make initial contacts.
Another option is to meet with an architect to discuss your general plans. Initial consultations are often free of charge.
It makes sense to explore options with prefabricated house manufacturers, developers, and architects to determine what suits you best.
P
PatrickStar25 Mar 2016 11:53Thank you all for your responses. My wife, being conscientious as she is, already keeps a household budget, so that’s a good starting point in that regard. I have also reviewed the breakdown of additional construction costs, which is definitely very helpful as a reference. Over the next few days, I will try to adapt the individual items to our region. Some aspects still seem a bit like a foreign language to me, but I think with the information from this forum and Google, I’ll manage it 🙂 Best regards