ᐅ Homebuilding Forum – Would You Choose to Buy or Build a House Again?
Created on: 11 Dec 2015 11:09
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xycrazyHello,
we are about to sign the contract with the developer but have started seriously reconsidering whether we should go through with it.
We negotiated for 8 months and were quite sure about it. However, towards the end, some issues arose regarding the contract and other matters, which we managed to resolve.
It now looks like we would be paying a third of our net income to the bank for 22 years. I think we can afford it. But when you are used to paying monthly rent of about €800-900 (divided by 2), this is quite a different level.
With a house, it’s not just the loan payments; there are ongoing maintenance costs as well. From what we’ve read, this is roughly €2-3 per m² (about 0.2-0.3 per sq ft) per month. So that’s another €400-500 per month. And, of course, there is much more work involved too.
Admittedly, this is stressing us out quite a bit, especially my partner. She is worried about the heavy financial burden each month. Is that justified?
We don’t want to live just for the house; we want to go on vacations, avoid problems with children, and so on. As I said, the current situation is manageable, but we wonder if we might be underestimating the costs.
So here’s my question to the community: looking back at everything you know now about loans, maintenance costs, upkeep, and so forth, would you buy or build a house again?
If yes, why? If not, why not? I’m really interested to hear your thoughts! And were there any surprises—positive or negative—that you didn’t expect?
Regards
we are about to sign the contract with the developer but have started seriously reconsidering whether we should go through with it.
We negotiated for 8 months and were quite sure about it. However, towards the end, some issues arose regarding the contract and other matters, which we managed to resolve.
It now looks like we would be paying a third of our net income to the bank for 22 years. I think we can afford it. But when you are used to paying monthly rent of about €800-900 (divided by 2), this is quite a different level.
With a house, it’s not just the loan payments; there are ongoing maintenance costs as well. From what we’ve read, this is roughly €2-3 per m² (about 0.2-0.3 per sq ft) per month. So that’s another €400-500 per month. And, of course, there is much more work involved too.
Admittedly, this is stressing us out quite a bit, especially my partner. She is worried about the heavy financial burden each month. Is that justified?
We don’t want to live just for the house; we want to go on vacations, avoid problems with children, and so on. As I said, the current situation is manageable, but we wonder if we might be underestimating the costs.
So here’s my question to the community: looking back at everything you know now about loans, maintenance costs, upkeep, and so forth, would you buy or build a house again?
If yes, why? If not, why not? I’m really interested to hear your thoughts! And were there any surprises—positive or negative—that you didn’t expect?
Regards
Try to remember why you want to build a house and what you are looking forward to – why did you start planning in the first place?
For me, owning a house means a sense of freedom and, of course, some security for the future (it forces you to save money). Whether the financial aspect turns out positive probably depends mainly on how property prices develop in our area.
I know many people who are very happy living in apartments their entire lives. Others swear by having their own home and a tree in front of it – I believe there is no absolute right or wrong here. Stories of construction disasters shouldn’t influence your decision any more than the glossy sales brochure from the home builder.
For me, owning a house means a sense of freedom and, of course, some security for the future (it forces you to save money). Whether the financial aspect turns out positive probably depends mainly on how property prices develop in our area.
I know many people who are very happy living in apartments their entire lives. Others swear by having their own home and a tree in front of it – I believe there is no absolute right or wrong here. Stories of construction disasters shouldn’t influence your decision any more than the glossy sales brochure from the home builder.
N
nordanney11 Dec 2015 11:31As BehaElja nicely put it, owning a house means freedom, security, and quality of life.
I would do it the same way again (this is already my third own property over the course of 20 years).
Regarding maintenance: Why do you want to set aside 400-500 € (about 430-540 USD) every month for a newly built house? I’m not referring to the usual additional costs, which you also pay when renting.
Calculation: 400 € x 12 = €4,800 per year x 15 years = €72,000 reserve — for what exactly? A new heating system, roof, or bathrooms? These usually aren’t due for replacement within that time frame.
If you start building reserves after 10 years, that should be sufficient — by then, your loan payments remain the same, but your income has probably increased, making it easier to save.
Also keep in mind that rent can increase, whereas the mortgage payment on a house remains fixed with a long-term fixed interest rate.
I would do it the same way again (this is already my third own property over the course of 20 years).
Regarding maintenance: Why do you want to set aside 400-500 € (about 430-540 USD) every month for a newly built house? I’m not referring to the usual additional costs, which you also pay when renting.
Calculation: 400 € x 12 = €4,800 per year x 15 years = €72,000 reserve — for what exactly? A new heating system, roof, or bathrooms? These usually aren’t due for replacement within that time frame.
If you start building reserves after 10 years, that should be sufficient — by then, your loan payments remain the same, but your income has probably increased, making it easier to save.
Also keep in mind that rent can increase, whereas the mortgage payment on a house remains fixed with a long-term fixed interest rate.
D
Doc.Schnaggls11 Dec 2015 11:36Hello,
definitely: We would build again immediately!
The construction period was one of the most exciting and interesting phases we have experienced so far.
Watching something grow and develop that you have significantly helped plan is an experience I wouldn’t want to miss.
Of course, there were many (sometimes heated) discussions during the planning and construction phases, but the time together clearly brought us even closer.
Our build went suspiciously smoothly but was also spiced up by minor "disasters" such as a major fire brigade operation due to a collapsing scaffold or unexpected extra costs for breaking open the street to finally connect our wastewater system.
All in all, every evening when we come home, we are proud of our "house" and enjoy being able to play loud music or watch a nice movie without immediately bothering any neighbors who might feel disturbed.
However, finding the right construction partner is crucial — this lesson is one I can only strongly recommend to any future home builder. The success of the whole project depends on the building company.
Best regards,
Dirk
definitely: We would build again immediately!
The construction period was one of the most exciting and interesting phases we have experienced so far.
Watching something grow and develop that you have significantly helped plan is an experience I wouldn’t want to miss.
Of course, there were many (sometimes heated) discussions during the planning and construction phases, but the time together clearly brought us even closer.
Our build went suspiciously smoothly but was also spiced up by minor "disasters" such as a major fire brigade operation due to a collapsing scaffold or unexpected extra costs for breaking open the street to finally connect our wastewater system.
All in all, every evening when we come home, we are proud of our "house" and enjoy being able to play loud music or watch a nice movie without immediately bothering any neighbors who might feel disturbed.
However, finding the right construction partner is crucial — this lesson is one I can only strongly recommend to any future home builder. The success of the whole project depends on the building company.
Best regards,
Dirk
Clear answer:
YES.
Definitely very different from how I did it. But that is a completely different story. Building a house is no joke; the construction period itself is exciting, exhausting, frustrating, life-changing, and formative.
Then, at some point, the thing is finished, and that’s when the real joy begins:
The improvement in quality of life, the freedom: outstanding.
You live differently. The change in life circumstances is incredible (POSITIVE).
Of course: It’s more work. But that work is done for and around the house. It can even be really fun to take on that responsibility. I now see it as my current hobby.
You also have to pay rent (and utilities, but electricity, water, gas, ... no longer cost anything in the house).
With a house, you also pay—possibly even more than you did in rent before. OK.
But your business partner is an institution (bank), not a landlord.
And you must always pay on time anyway.
BUT:
Even if you always paid your rent on time and behaved responsibly, a “losing-it” landlord can negatively affect your life and plans from one day to the next in an unbelievable way. Because of this real experience, I decided not to rent anymore but to build. My wife was doubtful at first, but today she is the one who even likes it more than I do (and I already think it’s great).
So once again: Definitely, yes. Own home.
Thorsten
YES.
Definitely very different from how I did it. But that is a completely different story. Building a house is no joke; the construction period itself is exciting, exhausting, frustrating, life-changing, and formative.
Then, at some point, the thing is finished, and that’s when the real joy begins:
The improvement in quality of life, the freedom: outstanding.
You live differently. The change in life circumstances is incredible (POSITIVE).
Of course: It’s more work. But that work is done for and around the house. It can even be really fun to take on that responsibility. I now see it as my current hobby.
You also have to pay rent (and utilities, but electricity, water, gas, ... no longer cost anything in the house).
With a house, you also pay—possibly even more than you did in rent before. OK.
But your business partner is an institution (bank), not a landlord.
And you must always pay on time anyway.
BUT:
Even if you always paid your rent on time and behaved responsibly, a “losing-it” landlord can negatively affect your life and plans from one day to the next in an unbelievable way. Because of this real experience, I decided not to rent anymore but to build. My wife was doubtful at first, but today she is the one who even likes it more than I do (and I already think it’s great).
So once again: Definitely, yes. Own home.
Thorsten
Hello,
although we have only been living in the house for a few weeks and still lack a lot of experience, I am glad that we took this step. I would do it again and hope that we won’t have to limit ourselves too much. So far, everything looks good.
At this point, I would like to quote my father-in-law:
I consider this statement extremely important. You need to feel comfortable with it. If that’s the case, go ahead; if not, then don’t.
although we have only been living in the house for a few weeks and still lack a lot of experience, I am glad that we took this step. I would do it again and hope that we won’t have to limit ourselves too much. So far, everything looks good.
At this point, I would like to quote my father-in-law:
The house should serve you, not the other way around.
I consider this statement extremely important. You need to feel comfortable with it. If that’s the case, go ahead; if not, then don’t.