ᐅ Homebuilding Forum – Would You Choose to Buy or Build a House Again?
Created on: 11 Dec 2015 11:09
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xycrazy
Hello,
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
I would choose to build a house again...
My girlfriend and I used to rent an apartment and paid about 650 euros per month for 75m² (3 rooms). Neighbors lived next door and above us... there was no garden, only a small front yard... 3 meters (10 feet) from a relatively busy street by our small-town standards. On the plus side, the location was close to the city center.
At the time, everything was fine, but once we had children and needed more space, problems started.
Apartments with 4-5 rooms, somewhat larger (120-130m², about 1,290-1,400 square feet) and possibly with a garden, are practically non-existent and would have cost us around 1000 euros per month... usually located on the outskirts or in nearby villages.
Now we have 140m² (1,510 square feet) of living space with a 900m² (9,690 square feet) plot of land, and although we are paying a mortgage, it is significantly less than the rent we paid, and the house belongs to us. Committing to this city was not very difficult since we both have permanent full-time employment contracts here.
My girlfriend and I used to rent an apartment and paid about 650 euros per month for 75m² (3 rooms). Neighbors lived next door and above us... there was no garden, only a small front yard... 3 meters (10 feet) from a relatively busy street by our small-town standards. On the plus side, the location was close to the city center.
At the time, everything was fine, but once we had children and needed more space, problems started.
Apartments with 4-5 rooms, somewhat larger (120-130m², about 1,290-1,400 square feet) and possibly with a garden, are practically non-existent and would have cost us around 1000 euros per month... usually located on the outskirts or in nearby villages.
Now we have 140m² (1,510 square feet) of living space with a 900m² (9,690 square feet) plot of land, and although we are paying a mortgage, it is significantly less than the rent we paid, and the house belongs to us. Committing to this city was not very difficult since we both have permanent full-time employment contracts here.
@chand1986
Basically, you’re right, but when I see the current rental market and the competition among tenants, I’m glad to be a property owner.
I think in 2-3 years it will get even worse. A 4-room apartment with a garage that’s not part of a building with 50 units will easily rent for 1000-1200 (USD or local currency) excluding utilities in our region.
And nothing is happening in social housing, absolutely nothing. Only exclusive new developments are being built. The newly arrived economic migrants and refugees will contribute to this situation.
And always the argument about moving being more flexible—well, I come from the metalworking industry, and within a 50km (30 miles) radius there is everything available, so a move is definitely not necessary.
Basically, you’re right, but when I see the current rental market and the competition among tenants, I’m glad to be a property owner.
I think in 2-3 years it will get even worse. A 4-room apartment with a garage that’s not part of a building with 50 units will easily rent for 1000-1200 (USD or local currency) excluding utilities in our region.
And nothing is happening in social housing, absolutely nothing. Only exclusive new developments are being built. The newly arrived economic migrants and refugees will contribute to this situation.
And always the argument about moving being more flexible—well, I come from the metalworking industry, and within a 50km (30 miles) radius there is everything available, so a move is definitely not necessary.
Hmm, for me, owning your own home is already a form of retirement planning. Of course, with a rental apartment (assuming rent increases remain moderate), you probably save more money overall. But where do I save more consistently? Paying off the house or transferring a chosen amount regularly into my bank account while renting? My parents are now in their mid-50s and have paid off their home. They now have 90% of their income available to save and enjoy life. They can calmly consider early retirement.
We will be done when my husband retires, and I still have to work for another 14 years—assuming regular payments without additional installments.
Would we build again? Definitely yes!!!
I love our house. It has made so many things easier. Does the child have too much energy? Off to the garden. Do I feel like I’m gaining weight? Off to the garden. My husband is lounging on the couch… off to the garden.
We now have everything on one level and more space. The house fits our needs 95%. A friend recently said it shows how proud and happy we are with our home.
Yes, it was a tough time, yes, it’s a lot of hard work now. But every time I haul another wheelbarrow of gravel away, I realize how much I actually enjoy this exhausting work. It’s wonderful to shape your own space bit by bit.
You’ll never get me back into a rental property!
We will be done when my husband retires, and I still have to work for another 14 years—assuming regular payments without additional installments.
Would we build again? Definitely yes!!!
I love our house. It has made so many things easier. Does the child have too much energy? Off to the garden. Do I feel like I’m gaining weight? Off to the garden. My husband is lounging on the couch… off to the garden.
We now have everything on one level and more space. The house fits our needs 95%. A friend recently said it shows how proud and happy we are with our home.
Yes, it was a tough time, yes, it’s a lot of hard work now. But every time I haul another wheelbarrow of gravel away, I realize how much I actually enjoy this exhausting work. It’s wonderful to shape your own space bit by bit.
You’ll never get me back into a rental property!
Of course, I would build again, although it probably won’t be necessary. It wasn’t that stressful after all.
Paragraph one, this is mine. When I am debt-free in five years and retire, I will have a gross income of about 4000 (no currency specified) and a paid-off house. My wife is younger and still earns an additional 1000 (no currency specified) from her part-time job. I don’t understand why this wouldn’t count as retirement planning. For a similarly nice rental apartment, you would definitely spend around 1000 (no currency specified).
Rural or urban... well, who wants to live in the city with all the stress, dirt, buses and trains full of pizza mess, fast food ketchup, and beer cans? So many semi-criminals everywhere; city dwellers are all neurotic anyway, as Woody Allen already knew. I don’t care about property value appreciation; that’s a topic for the heirs. We’re not selling here anyway.
Karsten
Paragraph one, this is mine. When I am debt-free in five years and retire, I will have a gross income of about 4000 (no currency specified) and a paid-off house. My wife is younger and still earns an additional 1000 (no currency specified) from her part-time job. I don’t understand why this wouldn’t count as retirement planning. For a similarly nice rental apartment, you would definitely spend around 1000 (no currency specified).
Rural or urban... well, who wants to live in the city with all the stress, dirt, buses and trains full of pizza mess, fast food ketchup, and beer cans? So many semi-criminals everywhere; city dwellers are all neurotic anyway, as Woody Allen already knew. I don’t care about property value appreciation; that’s a topic for the heirs. We’re not selling here anyway.
Karsten
Basically, I would consider building again, but definitely not within the next 5 years. I need to recover from the stress first... and unfortunately, you encounter many charlatans and people without manners when building... Even today, the thought of tradespeople urinating in corners disgusts me and makes my anger flare up... so: thanks, but no thanks!
S
Steffen8016 Oct 2017 13:43chand1986 schrieb:
Wow, a great thread that has unexpectedly come to my attention.
As, at least currently, a convinced and also happy renter, I hold a definite minority position.
I deliberately put forward a somewhat provocative thesis: The increase in freedom that most homeowners associate with building their own home is an illusion. On the contrary, renting actually offers significantly more freedom.
What do you mean? Yes, you heard that right!
I see two competing views of freedom here.
a) For the committed homeowner, freedom to customize is the primary focus—to create a living space that best meets their individual needs without having to consider restrictions imposed by a landlord. For this, they are willing to commit to a fixed location and often take on 20 to 30-year obligations with a bank. Additionally, they frequently accept significant limitations on wealth accumulation and thus retirement planning (depending on the size and location of the property).
b) For the committed renter, freedom of movement and financial flexibility are most important. Career opportunities connected to changing jobs aren’t hindered by the burden of owning a home. Also: The ability to stand up to a disliked employer and, if necessary, easily downsize or take the financially uncertain step into self-employment—none of this is possible if you have commitments attached to a property that don’t allow a temporary reduction in cash flow. So, this freedom is effectively given up when owning a home. If you live in a rural area, where resale is more difficult than in an urban setting, you become a slave to your property.
So, you can see there is a trade-off between different types of freedom, and you need a well-thought-out life plan and basic financial knowledge to make the right decision. Then, despite the respective disadvantages, either living concept can be enjoyable.
My view is that everyone should do what makes them happy. But it is essential to fully understand all the aforementioned advantages and disadvantages beforehand in order to make an informed choice.
Sometimes—and I truly mean this constructively—I feel that this is not the case. For example, young people under 30 (and I’m hardly older myself) who finance something rural for 30 years and even believe that once they no longer pay rent, they have secured their retirement.
Only when they understand that this is not true, and still want to build with a clear conscience, are they truly convinced homeowners, and their decision will bring them happiness!
I mean no harm here but would like to challenge the echo chamber I perceive in some posts in this thread. No offense to all homeowners!I completely agree with this!!! Most homebuilders especially deceive themselves about wealth accumulation!
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