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
For us, the share from the “normal” salary is also about 30%, although my husband has earned significantly more this year (and probably next year as well) due to working away from home, and we have invested most of that additional income in house-related purchases.
Unfortunately, we did not have much equity, since I was the sole earner during my husband’s studies and naturally could not save much. However, we received our plot of land for free (part of my grandmother’s property subdivided), saved some costs through personal work, and our house was reasonably priced. Overall, we have now invested around 260,000 euros (about 280,000 US dollars), and only the carport remains to be built, so we will still have a significant portion of the loan left, which will then go directly toward repayment.
Unfortunately, we did not have much equity, since I was the sole earner during my husband’s studies and naturally could not save much. However, we received our plot of land for free (part of my grandmother’s property subdivided), saved some costs through personal work, and our house was reasonably priced. Overall, we have now invested around 260,000 euros (about 280,000 US dollars), and only the carport remains to be built, so we will still have a significant portion of the loan left, which will then go directly toward repayment.
Hmm, are you married? Have you already signed a binding agreement at the registry office?
Could it be fear of making a decision?
Usually, the idea of paying rent indefinitely into someone else’s pot leads to the desire for homeownership.
However, travelers should not be held back. You need to have a settled mindset when choosing to buy a property – this also applies to being in a partnership.
If it ever becomes too much for you, selling is always an option. That is not a failure or a step backward. It just means you have one more attempt on your personal journey than those who never tried.
We are at about 28%.
Could it be fear of making a decision?
Usually, the idea of paying rent indefinitely into someone else’s pot leads to the desire for homeownership.
However, travelers should not be held back. You need to have a settled mindset when choosing to buy a property – this also applies to being in a partnership.
If it ever becomes too much for you, selling is always an option. That is not a failure or a step backward. It just means you have one more attempt on your personal journey than those who never tried.
We are at about 28%.
ypg schrieb:
We are at about 28%.
And once again, the magical approximately 30%... number.
That’s the reasonable figure when it comes to construction. I believe so.
I built my house in 2009 but had to give it up due to a separation. And yes, I’m building again. This time even better and more personalized, with the same construction company. The first time was just practice.
No more lifelong renting; instead, paying off a mortgage to have more money available in retirement. No compromises anymore when it comes to insulation, floor plan, or electrical work. A terrace for grilling, a small garden, and a washing machine in the basement (for me, pure quality of life—I don’t have to get dressed to go to the laundry room in case I run into someone in the stairwell, nor do I hear the machine running at night as I would if it were inside the apartment).
If the plan should fail at any point on the way to retirement, I won’t lose value here in this area and can sell or rent out the house. And whenever I have taken a risk after careful consideration, it has pushed me forward in life. At the same time, I try to minimize risk as much as possible with life insurance, disability insurance, and careful financial planning.
No more lifelong renting; instead, paying off a mortgage to have more money available in retirement. No compromises anymore when it comes to insulation, floor plan, or electrical work. A terrace for grilling, a small garden, and a washing machine in the basement (for me, pure quality of life—I don’t have to get dressed to go to the laundry room in case I run into someone in the stairwell, nor do I hear the machine running at night as I would if it were inside the apartment).
If the plan should fail at any point on the way to retirement, I won’t lose value here in this area and can sell or rent out the house. And whenever I have taken a risk after careful consideration, it has pushed me forward in life. At the same time, I try to minimize risk as much as possible with life insurance, disability insurance, and careful financial planning.
S
Steffen8011 Dec 2015 17:39Well... you can’t really generalize with 30%. Our plan is to allocate about 50% of our net income within the first 5 years, although that net income is quite high. From year 6 onward, it goes down to 20%. Loan amount is 500,000. With a fixed rate at the bank (1.5% repayment), we actually only need to cover about 13% (just in case).
Regards, Steffen
Regards, Steffen