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
We had an incredibly tough time during the construction and two tiny temporary apartments in between.
Our marriage (already 19 years) has improved even further on a high level through the house and what we did together. We accomplished something....says the Swabian. Together.
Arguments: None.
We shared worries.
Found solutions.
Got things done.......
It all comes down to your attitude.
Our marriage (already 19 years) has improved even further on a high level through the house and what we did together. We accomplished something....says the Swabian. Together.
Arguments: None.
We shared worries.
Found solutions.
Got things done.......
It all comes down to your attitude.
Doc.Schnaggls schrieb:
One very important aspect is choosing the right building partner — this is advice I can sincerely give to every future homeowner. The success of the entire project depends on the construction company. Exactly.
At the very least, it saves a LOT of trouble.
Especially when I read some of the posts here in the forum, I always think: "We’re really lucky to have built with our general contractor."
When choosing, your gut feeling is very helpful. The first positive impression our general contractor made: He visited our plot before the initial meeting and immediately brought ideas on how to utilize/integrate the plot’s conditions (differing from a standard house design).
T21150 schrieb:
The improvement in quality of life, the freedom: excellent.
You live differently. The change in life circumstances is unbelievable (POSITIVE).
Sure, it means more work. But that work is for and around the house. Taking on that responsibility is actually a lot of fun. I now see it as my current hobby. That’s right.
For the last year, my hobbies have changed a lot. Gardening . Caring for flower beds and growing vegetables .
Craft skills I didn’t even know I had before (the screws I used to drive in with the cordless drill could be counted on two hands) (I had never worked with concrete or built a fence). The advertising slogan from Hornbach actually applies to me: "Make it your project."
xycrazy schrieb:
And what about the mortgage? Were you ever worried whether it would work out, whether you could really afford the payments, whether you could still take vacations as before without having to count every penny twice? Or did the thought of not being able to simply terminate the lease and move somewhere else, for example because of a job offer, ever limit your freedom of choice? You do commit yourself to the location, which is no longer so easily changeable. Of course, you never know what the future holds. But I’m curious if this played a role for you. Mortgage — you really have to know what you can afford — even in emergency situations. If your monthly housing costs are about one-third of your net income, that’s not too bad.
Our financial situation changed shortly after moving in, and we suddenly had to get by with 800 euros less. Because of that, vacations were canceled this year and next. Do I miss them? Yes. Is it because of the house? No.
Moving for a job? Well — in my home region, I definitely wouldn’t earn what I do here. There are even opportunities for me to increase my income here. If my job here ever ends and a move becomes necessary, we will have to sell the house, even if it breaks our hearts.
BUT until then, we have an improvement in quality of life that is very hard to achieve otherwise.
So far, everyone has said yes.
Yesterday, a builder friend of mine called who built a similar house (shell construction) about 80 km (50 miles) away from me.
Our experiences match.
This other builder also helped a very young couple (23/24) who built such a house. They have now moved in and are happy. Hats off to these young people—they did it the right way.
****-gritting your teeth: just do it.
Of course, within budget. Anyone can build castles in the air with 180, 200, 300, or 600 m² (1,940, 2,150, 3,230, or 6,460 sq ft) plus a 1000 m² (10,760 sq ft) plot, but then might not be able to maintain it in the future. You have to think carefully and, if necessary, scale back. Common sense must NEVER be lost—no matter how well Rockefeller lived. He had more money. I would also love a HUF house on a 5000 m² (1.24 acres) lot with a hot tub and sauna. But I can’t afford that.
Yesterday, a builder friend of mine called who built a similar house (shell construction) about 80 km (50 miles) away from me.
Our experiences match.
This other builder also helped a very young couple (23/24) who built such a house. They have now moved in and are happy. Hats off to these young people—they did it the right way.
****-gritting your teeth: just do it.
Of course, within budget. Anyone can build castles in the air with 180, 200, 300, or 600 m² (1,940, 2,150, 3,230, or 6,460 sq ft) plus a 1000 m² (10,760 sq ft) plot, but then might not be able to maintain it in the future. You have to think carefully and, if necessary, scale back. Common sense must NEVER be lost—no matter how well Rockefeller lived. He had more money. I would also love a HUF house on a 5000 m² (1.24 acres) lot with a hot tub and sauna. But I can’t afford that.
N
nordanney11 Dec 2015 13:30xycrazy schrieb:
Regarding the monthly costs for house maintenance, I have often read about 2-3€ per m² (22-33 cents per sq ft). I personally find that quite high because with a new build in our case, that would actually amount to around 400-500€ (about 440-550 USD) per month. So these wouldn’t be savings but expenses on top of the mortgage. Is that realistic when you include insurance for the house, electricity, water, waste disposal, and so on, or is that overestimated? We just don’t have a clear sense of it.The costs are roughly the same as those you have in a rental apartment! Possibly a bit higher because the house is larger. By the way, this has already been discussed in detail in another thread.
Mortgage payment house = base rent apartment/house
Additional costs house = utility costs rented apartment/house
==> electricity, water, sewage, gas, district heating, contents insurance, home insurance, garbage collection, street cleaning, etc.
Hello xycrazy,
an interesting question, which I am grateful to answer with YES for us.
That means, we absolutely do not regret building our dream home, but we probably would not want to build again because we found the construction period quite exhausting, even though it was a turnkey build that went smoothly without any problems.
We also had major concerns about the financial burden, as this involves a lot of money and a decision that affects our future. Ultimately, we decided to go ahead with the build because we both grew up in our parents’ own houses and are therefore used to living in a detached single-family home. In addition, we lived for six years renting a real wreck without heating, and that simply had to end.
Renting again was not an option for us because:
1. We prefer to invest our money in a house that will eventually belong to us
2. In my hometown (where we really wanted to live) there are no rental properties available
We are completely satisfied with our house, even though it might seem rather modest to others since it has hardly any extras and looks quite simple. However, for us it is truly 100% what we wanted, and compared to the previous run-down rental, it feels like a great luxury, and we are very, very proud that this is now our home.
We have no problems with financial limitations because we are both quite unpretentious. My husband finished his studies just before construction started. So I was the sole earner for years, and we never had much; we always saved most of what we had for the house build. We were used from the start to living frugally; going out, clothes, etc., are not that important to us; we have always preferred to make home cozy.
We were still able to take vacations even during the financially tight years, and despite the burdens of building a house, we will continue to do so. It really depends on one’s own priorities. For example, a one-week holiday within Germany is enough for us; we don’t have to travel abroad, and we are not fans of the heat in the Mediterranean anyway.
But everyone has to decide that for themselves... and when you have your own home where you feel comfortable, maybe you don’t want to be away from it for long anyway?
I completely agree with the others: the most important things when building a house are having a reliable, good building partner and making sure the house fits your personal financial situation.
But in any case, it’s really wonderful to live in your own home, built to your personal needs, and it feels very different to drive home to your own house after work instead of to a rental property. Somehow, it’s more emotional because it’s your own place, where you have put so much of yourself into it...
an interesting question, which I am grateful to answer with YES for us.
That means, we absolutely do not regret building our dream home, but we probably would not want to build again because we found the construction period quite exhausting, even though it was a turnkey build that went smoothly without any problems.
We also had major concerns about the financial burden, as this involves a lot of money and a decision that affects our future. Ultimately, we decided to go ahead with the build because we both grew up in our parents’ own houses and are therefore used to living in a detached single-family home. In addition, we lived for six years renting a real wreck without heating, and that simply had to end.
Renting again was not an option for us because:
1. We prefer to invest our money in a house that will eventually belong to us
2. In my hometown (where we really wanted to live) there are no rental properties available
We are completely satisfied with our house, even though it might seem rather modest to others since it has hardly any extras and looks quite simple. However, for us it is truly 100% what we wanted, and compared to the previous run-down rental, it feels like a great luxury, and we are very, very proud that this is now our home.
We have no problems with financial limitations because we are both quite unpretentious. My husband finished his studies just before construction started. So I was the sole earner for years, and we never had much; we always saved most of what we had for the house build. We were used from the start to living frugally; going out, clothes, etc., are not that important to us; we have always preferred to make home cozy.
We were still able to take vacations even during the financially tight years, and despite the burdens of building a house, we will continue to do so. It really depends on one’s own priorities. For example, a one-week holiday within Germany is enough for us; we don’t have to travel abroad, and we are not fans of the heat in the Mediterranean anyway.
But everyone has to decide that for themselves... and when you have your own home where you feel comfortable, maybe you don’t want to be away from it for long anyway?
I completely agree with the others: the most important things when building a house are having a reliable, good building partner and making sure the house fits your personal financial situation.
But in any case, it’s really wonderful to live in your own home, built to your personal needs, and it feels very different to drive home to your own house after work instead of to a rental property. Somehow, it’s more emotional because it’s your own place, where you have put so much of yourself into it...