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
C
Camille198425 Jan 2019 20:39Thank you very much for the diverse opinions. And yes, I’m relieved that no one immediately discouraged me, but at the same time showed me the reality!
In the near future, I will talk to my parents and possibly consult an independent financial advisor. At the same time, I will casually inquire about available plots of land and their prices.
If my project proves to be at least realistically feasible, I will buy a plot, unless it requires building within a very short period. I simply don’t want to take my son away from his amazing primary school. I also believe that, if necessary, a plot can be resold without loss. If my financial situation does not allow for building a house, I will not buy anything for now and continue to think it over.
At the right time, I will certainly have new questions and look forward to further exchange.
Thank you!
In the near future, I will talk to my parents and possibly consult an independent financial advisor. At the same time, I will casually inquire about available plots of land and their prices.
If my project proves to be at least realistically feasible, I will buy a plot, unless it requires building within a very short period. I simply don’t want to take my son away from his amazing primary school. I also believe that, if necessary, a plot can be resold without loss. If my financial situation does not allow for building a house, I will not buy anything for now and continue to think it over.
At the right time, I will certainly have new questions and look forward to further exchange.
Thank you!
montessalet25 Jan 2019 21:08If you find a suitable plot of land, buy it—especially if there is a building obligation longer than 3 years (or none at all).
I share your view on the price increase for building plots: however, only if reasonable infrastructure is available. That seems to be the case here.
So, secure the building plot first and then plan calmly. By the way, that’s exactly what we are doing right now. It’s less stressful once the plot is secured.
From everything I’ve read from you, I’m confident you can handle this. You look ahead but also have a realistic perspective.
I share your view on the price increase for building plots: however, only if reasonable infrastructure is available. That seems to be the case here.
So, secure the building plot first and then plan calmly. By the way, that’s exactly what we are doing right now. It’s less stressful once the plot is secured.
From everything I’ve read from you, I’m confident you can handle this. You look ahead but also have a realistic perspective.
montessalet schrieb:
From everything I’ve read from you, I’m confident that you can do it. You look ahead but also have a realistic perspective.That’s exactly how I see it too 🙂
Hello Camille,
You roughly described your life situation. The initial responses from other participants, which are quite accurate, focus almost exclusively on financing. Of course, that’s the first question you need to ask yourself: What can I realistically afford? So, you have to align your ideas and wishes with your financial capacity. However, there are many possibilities here as well. You don’t necessarily have to pay off your house by retirement age. My wife and I are moving into our new house in Hamburg in two months. We’re both in our late 30s, earn well, but due to the high overall costs in Hamburg, we won’t have fully paid off the financing by retirement age. We have consciously accepted that. By retirement, our daughter will probably have moved out. Then we will (hopefully, if things continue to go well!) be alone in the house. Maybe it will be too big for us then, and we might sell it and move into a smaller apartment. Who knows... In any case, we are looking forward to hopefully many happy years in the house, but we also know we shouldn’t be too attached to it. If interest rates rise significantly after the financing period or something else happens (job loss, illness, divorce, etc.), then that’s how it is, and you have to deal with it. If you only think negatively, you’ll never start anything that could potentially end badly.
If you decide to build, it’s like raising and caring for a child. There are a few basic rules that are sensible and good to follow. You should definitely stick to those. But much also depends on personal, local, and timely circumstances! Many people could probably share their positive and negative experiences with you. Whether these would apply in your case depends on your individual situation. So take the basic rules as a foundation and be ready to take your own (often long and challenging!) path.
Best regards
Andy
You roughly described your life situation. The initial responses from other participants, which are quite accurate, focus almost exclusively on financing. Of course, that’s the first question you need to ask yourself: What can I realistically afford? So, you have to align your ideas and wishes with your financial capacity. However, there are many possibilities here as well. You don’t necessarily have to pay off your house by retirement age. My wife and I are moving into our new house in Hamburg in two months. We’re both in our late 30s, earn well, but due to the high overall costs in Hamburg, we won’t have fully paid off the financing by retirement age. We have consciously accepted that. By retirement, our daughter will probably have moved out. Then we will (hopefully, if things continue to go well!) be alone in the house. Maybe it will be too big for us then, and we might sell it and move into a smaller apartment. Who knows... In any case, we are looking forward to hopefully many happy years in the house, but we also know we shouldn’t be too attached to it. If interest rates rise significantly after the financing period or something else happens (job loss, illness, divorce, etc.), then that’s how it is, and you have to deal with it. If you only think negatively, you’ll never start anything that could potentially end badly.
If you decide to build, it’s like raising and caring for a child. There are a few basic rules that are sensible and good to follow. You should definitely stick to those. But much also depends on personal, local, and timely circumstances! Many people could probably share their positive and negative experiences with you. Whether these would apply in your case depends on your individual situation. So take the basic rules as a foundation and be ready to take your own (often long and challenging!) path.
Best regards
Andy