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!
Mottenhausen schrieb:
A collapse of the real estate market with the corresponding loss in value and price drop would require that no one buys anymore. NO ONE, not even those currently waiting for the crisis. Otherwise, everyone would wait and then buy, and only if there is such a high interest from those waiting, there is no price decline. As long as the economy is booming and interest rates are low, not much will change, that’s true. But in a globalized world, this can turn quickly, and as an export nation, we are particularly vulnerable. Trade and sales are ultimately heavily influenced by psychology; it does not require an apocalypse. It’s enough if the supply of properties on the market increases again. If I own a stock that grows year after year and pays a solid dividend, I won’t sell it, just as I wouldn’t unnecessarily sell a home that is currently making me richer on paper each year. But at the first sign of a setback (e.g. a profit warning), I as a buyer become cautious and observe more closely, and once the chart clearly trends downward, I will part with it. Germans are very sensitive when it comes to money. I can always see this clearly when customers here nearly lose their minds over a €2.50 account maintenance fee per month but gladly pay €3 at the Christmas market for mulled wine in a Tetra Pak… but that’s another topic.
From conversations with customers, we know that many from the 50+ generation and silver agers definitely still want to move (barrier-free, low-maintenance, closer to their children, etc.), but they keep postponing their plans because the pressure is not yet high enough. These very people will seriously consider selling their home as soon as there is a real risk that next month they will get less for it and the move to their children and grandchildren might no longer happen, at least not in the foreseeable future.
But as I said, as long as Trump keeps his hands off, Putin’s hands are tied, China continues to grow, Italy’s funding does not get cut off, etc., this is not a topic.
Jean-Marc schrieb:
when customers almost lose their temper over a 2.50 euro monthly account management fee... it might be because nowadays this fee is almost always just a charge for having an account number, and it feels like even a simple greeting from them would cost extra.https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
For many years before building our house, we were certain that we wanted to build in my hometown someday (buying was unfortunately not an option, as nobody moves away here, and therefore no houses are for sale).
The plan was always to start planning once my husband finished his studies. Until then, we saved every euro from my modest sole income for our dream home. Luckily, the rent for our old house was very low, and there were hardly any additional costs.
My husband was supposed to submit his master’s thesis in fall 2014 and then start a permanent job. So, at the end of 2013, we began looking at model homes and searching for a construction company. The plan was to start building by late 2015/early 2016 and move in during 2016.
We quickly found a construction company we trusted, as well as our dream house. The preliminary approval for our plot was positive. So, in summer 2014, we signed the preliminary contract, in November the main construction contract, and submitted the building permit / planning permission application in December of the same year.
We originally wanted to start in May 2015 and move in by September/October, but our builder was able to advance the start of construction. As a result, construction began in early March, the topping-out ceremony was in mid-April, handover at the end of July, and we moved in mid-August 2015.
We are very happy that everything happened faster than planned, which saved us from spending a harsh winter in our old wooden house with a smoky stove!
Overall, it took just over 1.5 years from the initial research to moving in.
The plan was always to start planning once my husband finished his studies. Until then, we saved every euro from my modest sole income for our dream home. Luckily, the rent for our old house was very low, and there were hardly any additional costs.
My husband was supposed to submit his master’s thesis in fall 2014 and then start a permanent job. So, at the end of 2013, we began looking at model homes and searching for a construction company. The plan was to start building by late 2015/early 2016 and move in during 2016.
We quickly found a construction company we trusted, as well as our dream house. The preliminary approval for our plot was positive. So, in summer 2014, we signed the preliminary contract, in November the main construction contract, and submitted the building permit / planning permission application in December of the same year.
We originally wanted to start in May 2015 and move in by September/October, but our builder was able to advance the start of construction. As a result, construction began in early March, the topping-out ceremony was in mid-April, handover at the end of July, and we moved in mid-August 2015.
We are very happy that everything happened faster than planned, which saved us from spending a harsh winter in our old wooden house with a smoky stove!
Overall, it took just over 1.5 years from the initial research to moving in.
M
Mottenhausen4 Dec 2018 00:2211ant schrieb:
You don’t really build just because of the roughly ten years during which the little brats are cute No, you misunderstood me. This is about the timing. I didn’t say I’m building only because of the children, but I am building NOW because of the children. Owning a home was already decided for us, but when it comes to timing, there is only one answer for me: the sooner the better.
Regarding the crisis: a wave of sales leading to an oversupply and price drops—well, I’m not sure how well that analogy fits compared to stock investments, but okay.
I’ve already mentioned the main issue elsewhere. Due to migration over the past years, the population living in Germany has grown faster than new housing has been built. I don’t want to start a political debate here, so it doesn’t matter whether the number is half a million or three million. What’s clear is that a city of this size is missing in Germany. At least politicians are now talking about social housing, but until something actually happens and the backlog is made up, housing will remain scarce, meaning sellers will dictate prices as they please.
B
Buchweizen4 Dec 2018 13:35The real estate crisis that is supposed to happen, with prices falling again and interest rates rising, has been talked about for years now. Often, the negative term "globalization" is also thrown into the discussion. Do you really believe that, say, in three years the interest rates will be back at 6% while prices will drop so drastically that waiting will be worthwhile? Honestly, I don’t think so. Interest rates may rise again at some point, but I don’t believe prices will fall to the extent that some people seem to hope for.
Buchweizen schrieb:
I don’t believe prices will drop to the extent that some might wish. I completely share this skepticism. As soon as there is some relief anywhere (keyword: child home bonus or similar), there is always someone who takes it back out of your pocket. The update to the energy-saving regulations—in my opinion a political farce of the highest order—will likely continue to drive construction costs even higher overall.
However, I expect a cooldown in the land market boom for poor-quality plots (steep slopes, very narrow strips, tiny lots, swamps), simply due to reaching the saturation point.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/