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
Mottenhausen schrieb:
Yes, yes: good old life experience, that argument is sure to convince any banker when granting a loan. In the forum, it’s also a handy point to make if you don’t feel like dealing with the facts. As for me, I stick to the facts, and unfortunately they point to a shoebox here. It might not fit your worldview, but:Laughing, I mean your life experience, not theirs. In short, what you say about getting a loan at a certain age is nonsense. Maybe you know someone who knows someone who had that experience. But since I have financed the occasional property over age 35 for various reasons—not that long ago—and my circle of friends around my age has financed properties up and down, and my father even financed one at 64, your theory can’t be right. You just talk as if you made the rules yourselves. When certain conditions are met, much is possible. One place where problems might arise is with the status “separated,” because it’s uncertain how much income remains.
Mottenhausen schrieb:
As their automatic salary increases come in, eventually alimony and child support end, so it’s a zero-sum game on the income side.But that is a completely different argument. Whether it makes sense to build a house here has nothing to do with the nonsense of “time is running out, you can’t get a loan after 35.”
And something was also said here about googling what A13 is. (Is that deleted?) No, why would you google when factors can distort the picture and the original poster can just post it here?!
C
Camille198425 Jan 2019 14:33I also want to thank the last contributors for their opinions and will elaborate on a few points.
Does a single parent really need a house? No one really needs a house! Of course, an apartment is sufficient, but each of us has dreams in life, and hopefully most will try to realize these dreams, whatever they may be. I want to be my own master, not have to consider neighbors much (we both play wind instruments), and so on... Whether those dreams come true is another matter. But it’s hard for me to give up on my dreams right from the start just because my marriage didn’t work out. I want to at least try—that is, try to live my dream and only give up if it really can’t work out. On the other hand, I’m a big realist and will accept the situation if the obstacles become insurmountable. Promise ;-).
Now, about my income situation. I’m already preparing myself. My current net income after health insurance is 3000€ (approximately $3200). I also receive about 400€ (around $430) in child support and 200€ (about $220) in child benefits. At the moment, I pay 1250€ (around $1330) for rent including utilities and save at least 1000€ (about $1060) per month. The rest of the money supports both of us well, and I don’t feel like I’m sacrificing much. The savings also cover a car and other expenses. Every now and then, we treat ourselves to something (e.g., children’s skis, furniture, or similar). I drive an economical small car, have only a prepaid phone plan, and generally feel comfortable with the available funds. For vacations, we currently either stay with the grandparents (who then spoil the single mom) or go together with them to a holiday apartment within Germany.
When I read here that many people plan their mortgage so that one person alone can pay it and still have a good living, I wonder whether most homebuyers earn significantly more (just one person’s income) or if they are just taking the risk? Equity seems to be the decisive point here. By the way, I would have used a private loan from the bank as equity and negotiated the payments with my parents—but maybe there’s still some room for maneuver. I can’t really assess that.
Used houses for renovation in my area currently cost between 300,000€ and 400,000€ (about $320,000 to $426,000), plus renovation costs. So that is out of the question for me. Nice new-build apartments with garden sections cost around 350,000€ (about $373,000) with all the disadvantages that come with apartment living (and yes, also some advantages).
For the sake of clarity, I’ll continue in the next post.
Does a single parent really need a house? No one really needs a house! Of course, an apartment is sufficient, but each of us has dreams in life, and hopefully most will try to realize these dreams, whatever they may be. I want to be my own master, not have to consider neighbors much (we both play wind instruments), and so on... Whether those dreams come true is another matter. But it’s hard for me to give up on my dreams right from the start just because my marriage didn’t work out. I want to at least try—that is, try to live my dream and only give up if it really can’t work out. On the other hand, I’m a big realist and will accept the situation if the obstacles become insurmountable. Promise ;-).
Now, about my income situation. I’m already preparing myself. My current net income after health insurance is 3000€ (approximately $3200). I also receive about 400€ (around $430) in child support and 200€ (about $220) in child benefits. At the moment, I pay 1250€ (around $1330) for rent including utilities and save at least 1000€ (about $1060) per month. The rest of the money supports both of us well, and I don’t feel like I’m sacrificing much. The savings also cover a car and other expenses. Every now and then, we treat ourselves to something (e.g., children’s skis, furniture, or similar). I drive an economical small car, have only a prepaid phone plan, and generally feel comfortable with the available funds. For vacations, we currently either stay with the grandparents (who then spoil the single mom) or go together with them to a holiday apartment within Germany.
When I read here that many people plan their mortgage so that one person alone can pay it and still have a good living, I wonder whether most homebuyers earn significantly more (just one person’s income) or if they are just taking the risk? Equity seems to be the decisive point here. By the way, I would have used a private loan from the bank as equity and negotiated the payments with my parents—but maybe there’s still some room for maneuver. I can’t really assess that.
Used houses for renovation in my area currently cost between 300,000€ and 400,000€ (about $320,000 to $426,000), plus renovation costs. So that is out of the question for me. Nice new-build apartments with garden sections cost around 350,000€ (about $373,000) with all the disadvantages that come with apartment living (and yes, also some advantages).
For the sake of clarity, I’ll continue in the next post.
C
Camille198425 Jan 2019 14:43My brother is currently renovating a large house (200 sqm (2,150 sq ft)) from the 1970s with electric underfloor heating. The following tasks are being carried out by him and my father themselves:
- Removing the old flooring and the existing underfloor heating (with a company and some help)
- Removing all wall coverings (by themselves)
- Building the necessary drywall partitions and covering them with drywall sheets where needed (by themselves)
- Insulating the floor, installing the underfloor heating system, and setting up the heating system (ground source heat pump)
- Connecting the house water system (?) to a well in the garden
- Installing all new electrical wiring, laying empty conduits, laying cables for a self-designed KNX system -> consolidating all wiring in the basement
- Installing a controlled residential ventilation system with ductwork
- Renovating the plumbing and bathrooms (bathroom fixtures ordered and installed by themselves)
- Laying tiles and floorboards
- Painting and wallpapering
- Insulating the basement
Contractors installed the new windows, poured the screed, completed the plastering and patching work, and reconnected the electrical distribution board.
I have surely forgotten many things. The roof will be renovated later. I see quite a few opportunities for doing some work myself with the right support. But as mentioned above, if the financial situation cannot be resolved, none of this will help me. I’m fully aware of that!
P.S.: The smile on men’s faces when the core drill hums is a sight in itself...
- Removing the old flooring and the existing underfloor heating (with a company and some help)
- Removing all wall coverings (by themselves)
- Building the necessary drywall partitions and covering them with drywall sheets where needed (by themselves)
- Insulating the floor, installing the underfloor heating system, and setting up the heating system (ground source heat pump)
- Connecting the house water system (?) to a well in the garden
- Installing all new electrical wiring, laying empty conduits, laying cables for a self-designed KNX system -> consolidating all wiring in the basement
- Installing a controlled residential ventilation system with ductwork
- Renovating the plumbing and bathrooms (bathroom fixtures ordered and installed by themselves)
- Laying tiles and floorboards
- Painting and wallpapering
- Insulating the basement
Contractors installed the new windows, poured the screed, completed the plastering and patching work, and reconnected the electrical distribution board.
I have surely forgotten many things. The roof will be renovated later. I see quite a few opportunities for doing some work myself with the right support. But as mentioned above, if the financial situation cannot be resolved, none of this will help me. I’m fully aware of that!
P.S.: The smile on men’s faces when the core drill hums is a sight in itself...
C
Camille198425 Jan 2019 14:52So far, I only know the standard land values. Here in the district town, they are unaffordable for me.
In the desirable neighborhoods with many new development areas, I also cannot afford a plot. Alternatively, the less attractive neighborhoods are an option. However, those areas are not pleasant, and I am not interested in the local community life. In rural areas, I believe that this is the only way to become part of the village community.
In the attractive municipalities on the Alb plateau (2,000 inhabitants and 1,000 inhabitants, respectively), the standard land value is between €109 and €124 per square meter (approximately $10 to $11.40 per square foot). I do not yet know the current plot prices. These two municipalities have relatively good infrastructure (no secondary schools) and shopping options within a short distance by car, such as Lidl, Edeka, and bakeries. There is also some industry on the hill.
I want a plot of a maximum 500-700 square meters (approximately 5,400 to 7,500 square feet), more likely around 500 square meters (approximately 5,400 square feet). However, I would need to see such plots in person to get a feel for the size. It should definitely not be too large. My parents’ plot is about 800 square meters (approximately 8,600 square feet), and I find it far too large and demanding to maintain.
The standard land value in the less attractive districts is also around €115 to €120 per square meter (approximately $10.60 to $11 per square foot).
In the desirable neighborhoods with many new development areas, I also cannot afford a plot. Alternatively, the less attractive neighborhoods are an option. However, those areas are not pleasant, and I am not interested in the local community life. In rural areas, I believe that this is the only way to become part of the village community.
In the attractive municipalities on the Alb plateau (2,000 inhabitants and 1,000 inhabitants, respectively), the standard land value is between €109 and €124 per square meter (approximately $10 to $11.40 per square foot). I do not yet know the current plot prices. These two municipalities have relatively good infrastructure (no secondary schools) and shopping options within a short distance by car, such as Lidl, Edeka, and bakeries. There is also some industry on the hill.
I want a plot of a maximum 500-700 square meters (approximately 5,400 to 7,500 square feet), more likely around 500 square meters (approximately 5,400 square feet). However, I would need to see such plots in person to get a feel for the size. It should definitely not be too large. My parents’ plot is about 800 square meters (approximately 8,600 square feet), and I find it far too large and demanding to maintain.
The standard land value in the less attractive districts is also around €115 to €120 per square meter (approximately $10.60 to $11 per square foot).