Good evening,
to gather some opinions and experiences, I have now registered in this forum after doing some reading.
Owning my own home has been a long-held dream of mine, and the desire is certainly deeply rooted in family reasons as well. Additionally, I want it as a form of retirement security, as I am currently experiencing with my parents how comfortable life can be without having to pay high rent. Whether I will really manage to make this dream come true will probably only become clear over time. For now, I just want to read some initial opinions.
Due to unfortunate events, I divorced in my early thirties and currently live with my son (6 years old) in a nice newly built apartment in a small town on the edge of the Swabian Jura. I work full-time in a senior civil service position (A13) and have lifetime tenure as a civil servant. Another partner or additional parental leave are not currently in sight, so there is no risk there. Financially, I am firmly stable. Child support is also paid regularly and reliably. However, due to the divorce, there is not much equity available.
My family is a DIY family. We really do almost everything ourselves. I am skilled in many areas, confident in my abilities, and eager to learn new things. So, a significant amount of the work will be done by ourselves. I have enough vacation time for building (feel free to criticize now ;-)). Support, experience, and contacts are also available. Detailed planning has not yet started.
My parents have provided both my brother, who is currently renovating, and me with interest-free loans of 100,000 euros each. Since I plan to build in three years (at the end of my son’s primary school years), I am currently considering whether it makes sense to buy a plot of land now and start repaying it interest-free. On the other hand, I could also save for three years and then have equity plus the interest-free loan available. However, I fear that rising land prices could erode my savings. I can also imagine that my parents would replenish the repaid amount back to 100,000 euros in three years.
My second consideration concerns the location of a potential plot. Since I come from the countryside myself, I have no problem moving back to a village. Financially, this will also be my only option. I also don’t mind being the chauffeur for my son. My parents did that for me, and I consider it part of it, even picking him up at night. Since I love winter, I could imagine moving to the Jura. That would be about 20 to 25 meters (12 to 15 miles) to my workplace. The current standard land values in the preferred locations are 109 or 124 euros per square meter. My son would then have to attend secondary school in the opposite direction from my workplace. He currently goes to primary school near where I work. We have no strong ties to our current residence (where we have lived for 2.5 years), and land there is overpriced. There is also an active community life related to my hobbies (music and a small ski lift in town).
Similar prices apply in two suburbs of the district town where I work, which would be only 12 to 15 kilometers (7 to 9 miles) from my workplace. However, these villages are less attractive, and the community activities do not really appeal to me. Since I pursue a hobby near Ulm, I would at least like to live on the right side of the Rems River, at the edge of or on the Jura, to shorten that commute.
As I said, I do not want to rush anything. I am just beginning to think about all of this. Opinions are very welcome!
Best regards
to gather some opinions and experiences, I have now registered in this forum after doing some reading.
Owning my own home has been a long-held dream of mine, and the desire is certainly deeply rooted in family reasons as well. Additionally, I want it as a form of retirement security, as I am currently experiencing with my parents how comfortable life can be without having to pay high rent. Whether I will really manage to make this dream come true will probably only become clear over time. For now, I just want to read some initial opinions.
Due to unfortunate events, I divorced in my early thirties and currently live with my son (6 years old) in a nice newly built apartment in a small town on the edge of the Swabian Jura. I work full-time in a senior civil service position (A13) and have lifetime tenure as a civil servant. Another partner or additional parental leave are not currently in sight, so there is no risk there. Financially, I am firmly stable. Child support is also paid regularly and reliably. However, due to the divorce, there is not much equity available.
My family is a DIY family. We really do almost everything ourselves. I am skilled in many areas, confident in my abilities, and eager to learn new things. So, a significant amount of the work will be done by ourselves. I have enough vacation time for building (feel free to criticize now ;-)). Support, experience, and contacts are also available. Detailed planning has not yet started.
My parents have provided both my brother, who is currently renovating, and me with interest-free loans of 100,000 euros each. Since I plan to build in three years (at the end of my son’s primary school years), I am currently considering whether it makes sense to buy a plot of land now and start repaying it interest-free. On the other hand, I could also save for three years and then have equity plus the interest-free loan available. However, I fear that rising land prices could erode my savings. I can also imagine that my parents would replenish the repaid amount back to 100,000 euros in three years.
My second consideration concerns the location of a potential plot. Since I come from the countryside myself, I have no problem moving back to a village. Financially, this will also be my only option. I also don’t mind being the chauffeur for my son. My parents did that for me, and I consider it part of it, even picking him up at night. Since I love winter, I could imagine moving to the Jura. That would be about 20 to 25 meters (12 to 15 miles) to my workplace. The current standard land values in the preferred locations are 109 or 124 euros per square meter. My son would then have to attend secondary school in the opposite direction from my workplace. He currently goes to primary school near where I work. We have no strong ties to our current residence (where we have lived for 2.5 years), and land there is overpriced. There is also an active community life related to my hobbies (music and a small ski lift in town).
Similar prices apply in two suburbs of the district town where I work, which would be only 12 to 15 kilometers (7 to 9 miles) from my workplace. However, these villages are less attractive, and the community activities do not really appeal to me. Since I pursue a hobby near Ulm, I would at least like to live on the right side of the Rems River, at the edge of or on the Jura, to shorten that commute.
As I said, I do not want to rush anything. I am just beginning to think about all of this. Opinions are very welcome!
Best regards
Camille1984 schrieb:
One more addition that might make me unpopular now.
In case of illness, I continue to receive my full salary, even over several years. Disability would actually be a problem. I have had a high accident insurance since childhood. So the remaining risk is a serious illness leading to early retirement. I will find out when and how much I would receive.
And to confirm the stereotypes: I have 12 weeks of vacation. Surely, that should be enough. It’s nice that you have a lot of vacation, but tradespeople won’t wait for Christmas, Easter, or summer holidays, or until you have time again to cut slots or install empty conduits. What you mentioned is time off in one block for painters, moving, floor installation, and landscaping. The part of your own labor is almost always included and only marginally reduces your total construction costs.
First, focus on current building costs, for example from 2019, and try to calculate a hypothetical loan amount including all the costs that need financing.
Only then can you see if further steps are worthwhile.
W
WilhelmRo25 Jan 2019 12:07Do you have additional equity besides the 100k?
How much does the land cost and what is its size in square meters?
What is your monthly income?
How large do you want the house to be?
Aside from that – why do you need a house for two people, or for just one person if your child moves out? Wouldn’t an apartment be sufficient?
Best regards
How much does the land cost and what is its size in square meters?
What is your monthly income?
How large do you want the house to be?
Aside from that – why do you need a house for two people, or for just one person if your child moves out? Wouldn’t an apartment be sufficient?
Best regards
Doing work yourself has to fit with your vacation time, and that can be difficult. What if your son is sick and, for example, the electrician is waiting to do the wall chases.
Clarify everything and also define what kind of house you want. Size, etc.
It’s good that you are well-secured.
I would consider moving to the countryside, close to hobbies, friends, and family. You can always change your job.
Clarify everything and also define what kind of house you want. Size, etc.
It’s good that you are well-secured.
I would consider moving to the countryside, close to hobbies, friends, and family. You can always change your job.
I would also like to know what remains for you with A13 🙂
You do have a sense of humor.
You can factor in your experiences,
... and you’re realistic as well.
I wouldn’t want to see someone as a hermit. That’s how it sounds to me when you talk about the Alb.
I also see the hormones that can’t be switched off: even those who have been burned and hurt heal over time, and eventually the desire for partnership and physical contact returns. This doesn’t necessarily mean the end of owning a home, but I would still include this possible future need in your planning.
Also, the social aspect of going to the cinema or out to eat, simply experiencing some urban life and having contacts around you is beneficial — for you and your son.
Therefore, I would probably invest in a plot of land that is also in a good location to sell if your life plans change.
Phew, I once deleted a quote here... it’s unbelievable to read — and now I’ll use some harsh words — that from 35+ years old you supposedly shouldn’t or can’t get a loan anymore. Those people clearly lack more lived or acquired life experience than they seem to have at their not-so-young age right now. A shoebox meets a drawer... and it’s a really tight fit 😀
Luckily, you don’t have blinders on and know that you can still finance 300,000€ even at 40 or 50 plus, and even as an employee at 64 (well, maybe not the full 300,000, but financing is still possible).
And as a civil servant, financing beyond retirement is also possible. I’ve seen this all within normal circumstances.
I see DIY work mostly in interior finishing as well as parking space, courtyard area, and garden.
In Germany, it’s better to have houses built according to the Energy Saving Ordinance by professionals, unless you’re a real expert yourself 😉
Camille1984 schrieb:
There is plenty of vacation time for building (so now go ahead and criticize ;-)).
You do have a sense of humor.
Camille1984 schrieb:
As someone who’s been burned before, I will definitely build and finance alone if possible. Then it belongs to me, no matter what happens. At this point, I’m completely unromantic about it.
You can factor in your experiences,
Camille1984 schrieb:
A ... man ... is ... therefore no risk.
... and you’re realistic as well.
Camille1984 schrieb:
How do you assess the discussion about living location?
I wouldn’t want to see someone as a hermit. That’s how it sounds to me when you talk about the Alb.
I also see the hormones that can’t be switched off: even those who have been burned and hurt heal over time, and eventually the desire for partnership and physical contact returns. This doesn’t necessarily mean the end of owning a home, but I would still include this possible future need in your planning.
Also, the social aspect of going to the cinema or out to eat, simply experiencing some urban life and having contacts around you is beneficial — for you and your son.
Therefore, I would probably invest in a plot of land that is also in a good location to sell if your life plans change.
Camille1984 schrieb:
Loans are available here for individuals who are civil servants for life. I have such cases in my colleagues.
Phew, I once deleted a quote here... it’s unbelievable to read — and now I’ll use some harsh words — that from 35+ years old you supposedly shouldn’t or can’t get a loan anymore. Those people clearly lack more lived or acquired life experience than they seem to have at their not-so-young age right now. A shoebox meets a drawer... and it’s a really tight fit 😀
Luckily, you don’t have blinders on and know that you can still finance 300,000€ even at 40 or 50 plus, and even as an employee at 64 (well, maybe not the full 300,000, but financing is still possible).
And as a civil servant, financing beyond retirement is also possible. I’ve seen this all within normal circumstances.
I see DIY work mostly in interior finishing as well as parking space, courtyard area, and garden.
In Germany, it’s better to have houses built according to the Energy Saving Ordinance by professionals, unless you’re a real expert yourself 😉
M
Mottenhausen25 Jan 2019 13:37ypg schrieb:
It’s unbelievable—now I have to use some harsh words—that people say you shouldn’t or couldn’t get a loan after age 35. Those people clearly lack more lived or acquired life experience than they currently have, considering their not-so-young age. It’s like a shoebox meets a drawer... extremely tight 😀Yes, yes: good old life experience, that argument will surely convince every banker when granting a loan. It’s also a great point to make in forums when you don’t feel like dealing with the facts. As for me, I stick to the facts, and unfortunately, that’s where the shoebox comes in. Maybe it doesn’t fit your worldview, but:
ypg schrieb:
You can still finance €300,000 at 40 or 50 plus, even as an employee at 64 (well, maybe not €300,000 then, but financing is possible). And as a civil servant, it can go beyond retirement.…doesn’t help us here, because she is neither 40, 50 nor 64, but 35, a single parent, with zero equity and a significant personal loan hanging over her. By the way, “civil servant” is not just “civil servant”... her salary group is A13…(!!!) Google can help translate this into concrete figures.
As automatic salary increases occur, child support and child benefits will eventually end, which is basically a break-even scenario on the income side.
I already demonstrated in the first reply that the numbers can work; the question is which bank will participate. I’m not assuming anyone gets sick, but banks care that the house gets finished. Let go of the emotional side of things: if one partner in a relationship is unable to work (illness), the other can at least contribute something. This is reflected in risk factors and a mathematical model whose outcome decides whether the bank approves the project or not. Right now, almost everything is red—except the age (this year)—which is green: so the rule is: NOW OR NEVER