ᐅ Building a House with €50,000 Equity / Is a Net Income of €2,500 Enough?
Created on: 2 Aug 2015 18:06
S
Sandor
Hello everyone,
We would like to briefly introduce ourselves:
We are a young couple, both 25 years old. We have been thinking about building a house for some time now. (We find both solid construction and prefab houses to be good options.) Located in Saxony. We want to build a turnkey house where nothing more needs to be done except maybe wallpapering and flooring. Our idea would be a bungalow of about 110 m² (1,185 sq ft). Land size around 600–800 m² (6,460–8,600 sq ft), with prices ranging from 20 to 40 euros per m² (2 to 4 USD per sq ft). We have a combined income of 2,500 euros (USD 2,700) – me: 1,500 euros (USD 1,600), my wife: 1,000 euros (USD 1,100). We have equity of 50,000 euros (USD 54,000).
Our questions:
- Is it possible to build a turnkey house including the land, all additional costs (notary, transfer tax, utility connections, etc.), garden, kitchen, and everything else for 200,000 euros (USD 215,000)? That would mean 50,000 euros (USD 54,000) equity and a 150,000 euro (USD 161,000) mortgage.
- Would we be able to get a loan of 150,000 euros (USD 161,000)? (We have a bank appointment coming up.)
- If that is not feasible, what kind of costs should we expect?
Thank you in advance for your help!
Best regards
We would like to briefly introduce ourselves:
We are a young couple, both 25 years old. We have been thinking about building a house for some time now. (We find both solid construction and prefab houses to be good options.) Located in Saxony. We want to build a turnkey house where nothing more needs to be done except maybe wallpapering and flooring. Our idea would be a bungalow of about 110 m² (1,185 sq ft). Land size around 600–800 m² (6,460–8,600 sq ft), with prices ranging from 20 to 40 euros per m² (2 to 4 USD per sq ft). We have a combined income of 2,500 euros (USD 2,700) – me: 1,500 euros (USD 1,600), my wife: 1,000 euros (USD 1,100). We have equity of 50,000 euros (USD 54,000).
Our questions:
- Is it possible to build a turnkey house including the land, all additional costs (notary, transfer tax, utility connections, etc.), garden, kitchen, and everything else for 200,000 euros (USD 215,000)? That would mean 50,000 euros (USD 54,000) equity and a 150,000 euro (USD 161,000) mortgage.
- Would we be able to get a loan of 150,000 euros (USD 161,000)? (We have a bank appointment coming up.)
- If that is not feasible, what kind of costs should we expect?
Thank you in advance for your help!
Best regards
That might be a tight fit. The plot probably isn’t the issue, but with 200,000 EUR you likely won’t manage. Personally, I find 110 sqm (1,184 sqft) quite small for a house. It should really be at least 130 sqm (1,399 sqft); anything less I would consider more like an apartment.
If you’re doing a lot of the work yourselves, with support from family, and stretch the financing over 30 years, it could work, provided your incomes still have some room for that. But that also means you’ll need to carefully manage the monthly budget. At least childcare shouldn’t be a problem for you.
What about used houses? If you’re handy with tools, that might be an option for you.
If you’re doing a lot of the work yourselves, with support from family, and stretch the financing over 30 years, it could work, provided your incomes still have some room for that. But that also means you’ll need to carefully manage the monthly budget. At least childcare shouldn’t be a problem for you.
What about used houses? If you’re handy with tools, that might be an option for you.
Hello tbb76
Thanks for your reply!
We have also been looking for a used one for quite some time and have already viewed several. Of course, that would be the best option! That’s also my opinion because you know what you're getting! Unfortunately, we haven’t found a suitable one yet, especially since the prices for some properties are set very high. But maybe we’ll still get lucky and find a good one. After all, we still have time!
We just thought it’s better to take out a loan while we’re young, so we can be debt-free sooner! That way, we don’t have to keep paying it off until retirement.
Best regards
Thanks for your reply!
We have also been looking for a used one for quite some time and have already viewed several. Of course, that would be the best option! That’s also my opinion because you know what you're getting! Unfortunately, we haven’t found a suitable one yet, especially since the prices for some properties are set very high. But maybe we’ll still get lucky and find a good one. After all, we still have time!
We just thought it’s better to take out a loan while we’re young, so we can be debt-free sooner! That way, we don’t have to keep paying it off until retirement.
Best regards