Hello dear forum,
My partner and I plan to move into our own home in 2016, or at the latest in 2017. We are from Saxony-Anhalt and want to build within the Halle / Saale area. We are both 27 years old and have a small son (1 year). Currently, we pay around 500 € (about $530) monthly rent excluding utilities for our apartment. We currently have about 20,000 € (approximately $21,000) in savings, which could increase to around 30,000 € (about $32,000) by the end of 2016. Our monthly income totals approximately 3,500 € (around $3,700).
Should we start looking for a suitable plot of land now, or wait until the end of next year to save more equity? Another question is, where can you actually buy land? We would like to handle everything through a prefabricated house provider. Should we also have them assist us in finding a suitable plot? How much house can we approximately afford?
We would like around 125 m² (about 1,345 sq ft) of living space and roughly 500 m² (about 5,380 sq ft) of land.
There are many open questions, and surely more will arise 🙂
Best regards
My partner and I plan to move into our own home in 2016, or at the latest in 2017. We are from Saxony-Anhalt and want to build within the Halle / Saale area. We are both 27 years old and have a small son (1 year). Currently, we pay around 500 € (about $530) monthly rent excluding utilities for our apartment. We currently have about 20,000 € (approximately $21,000) in savings, which could increase to around 30,000 € (about $32,000) by the end of 2016. Our monthly income totals approximately 3,500 € (around $3,700).
Should we start looking for a suitable plot of land now, or wait until the end of next year to save more equity? Another question is, where can you actually buy land? We would like to handle everything through a prefabricated house provider. Should we also have them assist us in finding a suitable plot? How much house can we approximately afford?
We would like around 125 m² (about 1,345 sq ft) of living space and roughly 500 m² (about 5,380 sq ft) of land.
There are many open questions, and surely more will arise 🙂
Best regards
You all have contributed a lot here 😉 I’m always happy to receive comments, but everything should remain constructive and not offensive. I’ll try to find the subforum 😉
Otherwise, I think using a developer will be out of the question since we plan to buy the land directly from the municipality... so then general contractor / main contractor. As I said, the first steps are underway, now waiting for feedback...
Regarding our expenses:
650€ rent including utilities
70€ electricity
30€ internet
150€ insurance
400€ cars
20€ mobile phone
400€ groceries
500€ miscellaneous
This should cover the main part. Loans do not need to be repaid yet.
What kind of loan amount and conditions would be expected here? Is it even feasible to finance a house with this?
Could someone please provide input on this?
If you buy a plot of land from the municipality in a new development area, it should be fully serviced, right, or are there still surveys or similar studies needed?
Otherwise, I think using a developer will be out of the question since we plan to buy the land directly from the municipality... so then general contractor / main contractor. As I said, the first steps are underway, now waiting for feedback...
Regarding our expenses:
650€ rent including utilities
70€ electricity
30€ internet
150€ insurance
400€ cars
20€ mobile phone
400€ groceries
500€ miscellaneous
This should cover the main part. Loans do not need to be repaid yet.
What kind of loan amount and conditions would be expected here? Is it even feasible to finance a house with this?
Could someone please provide input on this?
If you buy a plot of land from the municipality in a new development area, it should be fully serviced, right, or are there still surveys or similar studies needed?
It always depends somewhat… you have about a maximum of 1400 € (approximately $1,500) available as a guideline – the rent will no longer apply, but additional costs will increase. However, that would leave you with little buffer. I would rather suggest budgeting 1200 € (approximately $1,300).
If I understand correctly, the plot will then be paid off – regardless, you will probably have a loan-to-value ratio between 80 and 90%. Let’s assume an interest rate of 2.5% with a fixed interest period of 15 years. This would result in a maximum house price of about 320,000 € (approximately $350,000) with a 2% repayment rate or 260,000 € (approximately $285,000) with 3% repayment.
Even with reasonable finishes (1600 €/m² (approximately $150/ft²) in ST), you should be able to finance 130 m² (approximately 1,400 ft²) in both scenarios -> 1600 € * 130 ~ 210,000 € + 50,000 € additional costs -> 260,000 €.
Of course, you need to be confident that your expenses and income are accurate!
If I understand correctly, the plot will then be paid off – regardless, you will probably have a loan-to-value ratio between 80 and 90%. Let’s assume an interest rate of 2.5% with a fixed interest period of 15 years. This would result in a maximum house price of about 320,000 € (approximately $350,000) with a 2% repayment rate or 260,000 € (approximately $285,000) with 3% repayment.
Even with reasonable finishes (1600 €/m² (approximately $150/ft²) in ST), you should be able to finance 130 m² (approximately 1,400 ft²) in both scenarios -> 1600 € * 130 ~ 210,000 € + 50,000 € additional costs -> 260,000 €.
Of course, you need to be confident that your expenses and income are accurate!