L
Lunestros14 Apr 2019 16:33Hello everyone!
We – that’s me, 25 years old, and my better half, also 25 – are facing the challenge of building a house.
The topic of finding the “right plot of land” was the first thing we wanted to tackle, and thanks to available options within the family circle, we have already taken care of that.
Now the focus is shifting to the actual “building” itself, and I’m starting to feel a bit overwhelmed.
One might find it funny since I work as a project manager in the family-owned road construction company – but when it comes to “building a house,” well... our expertise ends at the driveway :-)
Before we get in touch with architects or construction companies, I’d like to define the financial framework. First, I want to know what we can afford before I start making plans that might be beyond our budget.
We have scheduled an appointment with our joint bank to discuss this.
Ahead of that meeting, I would like to gather some opinions from experienced home builders – that’s you – to get a realistic idea of the total costs involved.
A quick overview of our situation:
Me, 25 years old:
My partner, 25 years old:
So, our combined net household income is €9,900 per month (approximately $10,700).
After compiling a typical household budget for the past 12 months, we currently have about €5,500 (approximately $5,900) left at the end of each month.
From October onwards, her salary will also come in, expected to be around €2,500 net per month (approximately $2,700).
My income is fairly secure because it’s from our family business – with the usual uncertainty that any company has.
Her position offers the prospect of a civil servant status (tenure).
What we want to build:
What we have:
We do not want to invest any equity beyond that.
What I am willing to spend:
I had a limit of €500,000 (approximately $540,000) in mind.
I’m happy to stay below that if possible, but I can also consider going over if necessary.
However, I have no real point of reference regarding what financial resources we should realistically expect to need here.
I would be grateful to hear in advance:
Many thanks in advance!
We – that’s me, 25 years old, and my better half, also 25 – are facing the challenge of building a house.
The topic of finding the “right plot of land” was the first thing we wanted to tackle, and thanks to available options within the family circle, we have already taken care of that.
Now the focus is shifting to the actual “building” itself, and I’m starting to feel a bit overwhelmed.
One might find it funny since I work as a project manager in the family-owned road construction company – but when it comes to “building a house,” well... our expertise ends at the driveway :-)
Before we get in touch with architects or construction companies, I’d like to define the financial framework. First, I want to know what we can afford before I start making plans that might be beyond our budget.
We have scheduled an appointment with our joint bank to discuss this.
Ahead of that meeting, I would like to gather some opinions from experienced home builders – that’s you – to get a realistic idea of the total costs involved.
A quick overview of our situation:
Me, 25 years old:
- Project manager
- €3,900 net per month (approximately $4,200) + profit sharing
My partner, 25 years old:
- Still studying in her final semester
- Owns two multi-family houses in the Alpine foothills, generating €9,000 net income per month (approximately $9,700)
- Minus €3,000 financing payments per month for ongoing renovation loans on the rental properties, resulting in a total income of €6,000 per month (approximately $6,500)
So, our combined net household income is €9,900 per month (approximately $10,700).
After compiling a typical household budget for the past 12 months, we currently have about €5,500 (approximately $5,900) left at the end of each month.
From October onwards, her salary will also come in, expected to be around €2,500 net per month (approximately $2,700).
My income is fairly secure because it’s from our family business – with the usual uncertainty that any company has.
Her position offers the prospect of a civil servant status (tenure).
What we want to build:
- Two-story house – probably with a basement
- Approximately 140m2 (1,507 sq ft)
- Brick veneer exterior
- Double garage
- City villa style
- Smart home features according to current standards
What we have:
- 1,100m2 (11,840 sq ft) fully serviced plot of land in beautiful Lower Bavaria
- Equipment and personnel to carry out all earthworks ourselves at no additional cost
We do not want to invest any equity beyond that.
What I am willing to spend:
I had a limit of €500,000 (approximately $540,000) in mind.
I’m happy to stay below that if possible, but I can also consider going over if necessary.
However, I have no real point of reference regarding what financial resources we should realistically expect to need here.
I would be grateful to hear in advance:
- How much would our planned home cost / what is a reasonable cost range?
- Is our budget sufficient?
- Where should we start – visiting model homes or going directly to an architect?
Many thanks in advance!
So the plot of land is paid off and yours?
I would also allow you 160 sqm (1,722 sq ft) 😉
I would also allow you more than 500,000 😉
However, I would probably always exclude rental income, since you also need to build up reserves. Although with 6,000, it wouldn’t be a problem to withdraw 1,000...
What about your plans regarding children?
I would also allow you 160 sqm (1,722 sq ft) 😉
I would also allow you more than 500,000 😉
However, I would probably always exclude rental income, since you also need to build up reserves. Although with 6,000, it wouldn’t be a problem to withdraw 1,000...
What about your plans regarding children?
L
Lunestros14 Apr 2019 17:30Oh, that was quick with the first response! Thanks already :-)
Yes, the plot is already paid for, including all additional costs.
Definitely no plans for children before age 30 *laughs*
But we would like to plan a room that can potentially be converted into a nursery.
My wife was thinking of a reading room, which we would gladly “give up” in favor of a child :-)
But in the near and medium term, that’s not on the agenda :-)
I simply have no clear idea of a reasonable price.
You read in so many reports prices ranging from X to Y, and somehow I lack a sense of what a rational, calculable sum would be.
We don’t want to do any work ourselves in the area of house construction or interior finishing—neither of us has the time or experience for that.
So we would probably go for a turnkey solution.
Yes, the plot is already paid for, including all additional costs.
Definitely no plans for children before age 30 *laughs*
But we would like to plan a room that can potentially be converted into a nursery.
My wife was thinking of a reading room, which we would gladly “give up” in favor of a child :-)
But in the near and medium term, that’s not on the agenda :-)
I simply have no clear idea of a reasonable price.
You read in so many reports prices ranging from X to Y, and somehow I lack a sense of what a rational, calculable sum would be.
We don’t want to do any work ourselves in the area of house construction or interior finishing—neither of us has the time or experience for that.
So we would probably go for a turnkey solution.
Definitely visit model homes. There you can see floor plans in 3-D, as well as floor and wall coverings. This simply helps to determine what you want.
Since earthworks are not required in your case, depending on the features, 160 sq m (1,722 sq ft) could be possible within the budget.
Since earthworks are not required in your case, depending on the features, 160 sq m (1,722 sq ft) could be possible within the budget.
140 sqm (1507 sq ft) is too small ... you earn so much and you are so young, in a few years you will notice that it is too small for you .... try drawing which rooms you want and their sizes ... include hallway and stairs, then you will see that you need more than 140 sqm (1507 sq ft) ....
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