We have now decided to start building a house from autumn 2019, even though personally I would have much preferred to buy. On one hand, I’m happy that our long-held plans are finally coming to fruition; on the other hand, I’m currently frustrated that we spent 5 years searching in vain – 5 years of rent payments at 600 euros per month (about $650 USD) times 12 months times 5 years equals 36,000 euros (about $39,000 USD)… money we could have already paid toward a mortgage.
My parents had their mortgage paid off by age 50. According to our repayment plan, I expect to be in my early 60s when we finish.
We posted several ads, told everyone we know, left notes in mailboxes of vacant properties, and kept our eyes open everywhere… all ultimately futile. We could have bought something in November 2017 but were outbid at the last moment by about 10,000 euros (around $11,000 USD). That was not worth it to us, especially since the agent was also asking for a commission. That’s life…
One real estate agent told us that interesting properties sometimes have to be marked inactive within an hour after listing because the phone won’t stop ringing otherwise.
About 95% of the viewings we did turned out to be disappointments: mold, water damage, kilos of pigeon droppings in the attic, awkward floor plans, very old electrical installations, filthy bathrooms, no mobile reception, slow internet, impending road and sewer construction of 1.5 years duration with cost repartition, paint shops, and noisy neighbors like arcades, and so on.
Supposedly, half villages are empty here in northern Hesse and many houses are waiting for buyers. But I really don’t see that, except for some dilapidated half-timbered houses on main roads.
This year, our patience ran out because I don’t believe anything will change in the next 5 years either.
How long did it take for you? Or did you skip the “fun” and decide to build right away? I’d be glad to read about your experiences.
Have a great weekend!
My parents had their mortgage paid off by age 50. According to our repayment plan, I expect to be in my early 60s when we finish.
We posted several ads, told everyone we know, left notes in mailboxes of vacant properties, and kept our eyes open everywhere… all ultimately futile. We could have bought something in November 2017 but were outbid at the last moment by about 10,000 euros (around $11,000 USD). That was not worth it to us, especially since the agent was also asking for a commission. That’s life…
One real estate agent told us that interesting properties sometimes have to be marked inactive within an hour after listing because the phone won’t stop ringing otherwise.
About 95% of the viewings we did turned out to be disappointments: mold, water damage, kilos of pigeon droppings in the attic, awkward floor plans, very old electrical installations, filthy bathrooms, no mobile reception, slow internet, impending road and sewer construction of 1.5 years duration with cost repartition, paint shops, and noisy neighbors like arcades, and so on.
Supposedly, half villages are empty here in northern Hesse and many houses are waiting for buyers. But I really don’t see that, except for some dilapidated half-timbered houses on main roads.
This year, our patience ran out because I don’t believe anything will change in the next 5 years either.
How long did it take for you? Or did you skip the “fun” and decide to build right away? I’d be glad to read about your experiences.
Have a great weekend!
montessalet1 Dec 2018 20:01Almost never. If you’re not building in the middle of nowhere, you can’t go wrong.
Prices are never fixed. Anyone trying to build a special house out on the prairie will have a hard time selling it.
If you build a typical house in a suburban area, you will always be able to sell it reasonably well.
Price adjustments may occur with very expensive properties. Otherwise: the bubble is something you can convince yourself of. Everyone thinks differently.
PS: We built in 2007 – from our perspective, it was very expensive. What has happened since then? An average price increase of over 30%! Okay, in Switzerland – but the same is happening in Germany with a slight delay (as shown impressively by the price explosion for building plots along the German Wine Route in southern Rhineland-Palatinate). Wait? Probably not.
Prices are never fixed. Anyone trying to build a special house out on the prairie will have a hard time selling it.
If you build a typical house in a suburban area, you will always be able to sell it reasonably well.
Price adjustments may occur with very expensive properties. Otherwise: the bubble is something you can convince yourself of. Everyone thinks differently.
PS: We built in 2007 – from our perspective, it was very expensive. What has happened since then? An average price increase of over 30%! Okay, in Switzerland – but the same is happening in Germany with a slight delay (as shown impressively by the price explosion for building plots along the German Wine Route in southern Rhineland-Palatinate). Wait? Probably not.
montessalet1 Dec 2018 20:05The rise in land prices will more than offset any possible reduction in house construction costs—provided the building takes place where infrastructure is available. So, not in a village of 500 inhabitants.
Time will tell.
Time will tell.
As a child, I already said that I wanted to live in my grandmother’s house someday. Last autumn, I finally got fed up with paying rent and looked into whether I could finance building a house as a single person. After receiving positive feedback, the first meetings with construction companies took place in January and February. From April to early June, the property was resurveyed and detailed financing discussions were held. In mid-June, the old house was demolished and the contract with the builder was signed. In mid-July, the notary appointment for the transfer of ownership and mortgage took place. On August 7th, I submitted the building permit (planning permission) application, and the permit finally arrived three weeks ago. The foundation slab is scheduled for calendar week 50, and the house will arrive in calendar week 3. I hope everything continues to go smoothly +knocks on wood+
Nordlys schrieb:
Be patient, the stock market will soon crash, and property prices will fall as well. People will blame Trump, Putin, China, or Brexit, but the truth is that everything is overbought. There is a shortage of labor and available capacity; there is plenty of money, but not enough goods and services. I’m not talking about butter, coffee, or dishwashers, but even with furniture, the problems start—12 weeks delivery time for a table, windows, reinforcing steel, Ytong blocks are scarce, as are heating systems, faucets, and so on. When the time comes and banks hand someone like Ließe Müller a fund package on World Savings Day, it will be nearly here. Don’t worry, building will soon become affordable again. KarstenBasically, I agree with you. But unlike stock trading and other bubble-forming products, housing is in short supply. I’m not referring to a small house out in the countryside where any highway or major employer is 50km (30 miles) away, but the value of real estate in and around metropolitan areas. If a crash does happen, it will be least noticeable or not noticeable at all here. For that reason, I am personally quite relaxed.
Mottenhausen schrieb:
Our general contractor is also the structural builder. That’s why we chose him. When did you sign the contract, and when is the construction scheduled to start?
M
Mottenhausen1 Dec 2018 20:59Contract signing planned for the end of November 2018, but still subject to financing approval; initial installments will be covered using own equity. Construction start depends on weather conditions, expected in February or March but no later than April 1, 2019, according to the contract. Now it’s time to finalize the building notification, with appointments for further (detailed) planning imminent. The soil survey has been arranged earlier, and a surveyor has been commissioned. The energy consultant assessment for KfW55 standard has also been completed and reimbursed. So, many preliminary tasks have already been completed before signing.
On the other topic here: to wait or not to wait… not everyone can afford to wait. The benefit for a young family is highest as long as the children are still small and can play in the garden. If I wait now for a possible bubble burst, the children will be grown up by then and likely only sitting at the computer or similar, so staying in a rental apartment would be just as feasible.
On the other topic here: to wait or not to wait… not everyone can afford to wait. The benefit for a young family is highest as long as the children are still small and can play in the garden. If I wait now for a possible bubble burst, the children will be grown up by then and likely only sitting at the computer or similar, so staying in a rental apartment would be just as feasible.