Hello everyone,
Since I started exploring the topic of house construction two months ago, I have now registered on this forum.
A brief introduction about me and my wife: We are both employed (civil engineer and real estate assistant) with a net income of 4xxx.
Equity capital: 50,000 euros.
One would actually assume that with this equity and net income, buying a property should be easy. However, since I do not want to repay a loan over 30-35 years but rather a maximum of 25 years, and I don’t want to fully stretch the limit, the monthly installment and therefore the total amount quickly become restricted. A total of 250,000 net plus additional construction costs equivalent to the equity capital would be the limit here. In Berlin and its surrounding area? Practically unthinkable.
I am a civil engineer (although specializing in concrete repair and thus not an expert in single-family houses, etc.) and can therefore assess construction prices, combined with my wife’s interest in the real estate sector, allowing us to understand the high general prices for land.
With 250,000 net plus additional construction costs, there is generally not much you can do nationwide for new builds — this is my initial assessment.
There has already been a lot of discussion here in other threads about construction costs, potential capital, and what is needed. When I see bargain houses on TV, I also facepalm. My assumption is that such homes don’t bring much joy. Heating systems, plumbing, electrical installations, thermal insulation — these are often overestimated.
Currently, I am researching prefabricated houses with self-finishing options. However, I do have some concerns, even though I assume that nowadays the materials at least meet certain standards.
So, what are the options?
Being bound for 30 years and pushing the loan to the limit?
House auctions?
Hoping for a bargain plot including an affordable prefab house as a self-build (lots of work and potentially many worries)
Since I plan to start building within the next 24-36 months, my initial findings are sobering.
At least the construction company I work for could provide the foundation slab plus groundwork like drainage, etc., at a low cost. I also know structural engineers and others involved. Maybe the project can be realized with a “small” budget thanks to these circumstances.
Has anyone managed to do this before?
Since I started exploring the topic of house construction two months ago, I have now registered on this forum.
A brief introduction about me and my wife: We are both employed (civil engineer and real estate assistant) with a net income of 4xxx.
Equity capital: 50,000 euros.
One would actually assume that with this equity and net income, buying a property should be easy. However, since I do not want to repay a loan over 30-35 years but rather a maximum of 25 years, and I don’t want to fully stretch the limit, the monthly installment and therefore the total amount quickly become restricted. A total of 250,000 net plus additional construction costs equivalent to the equity capital would be the limit here. In Berlin and its surrounding area? Practically unthinkable.
I am a civil engineer (although specializing in concrete repair and thus not an expert in single-family houses, etc.) and can therefore assess construction prices, combined with my wife’s interest in the real estate sector, allowing us to understand the high general prices for land.
With 250,000 net plus additional construction costs, there is generally not much you can do nationwide for new builds — this is my initial assessment.
There has already been a lot of discussion here in other threads about construction costs, potential capital, and what is needed. When I see bargain houses on TV, I also facepalm. My assumption is that such homes don’t bring much joy. Heating systems, plumbing, electrical installations, thermal insulation — these are often overestimated.
Currently, I am researching prefabricated houses with self-finishing options. However, I do have some concerns, even though I assume that nowadays the materials at least meet certain standards.
So, what are the options?
Being bound for 30 years and pushing the loan to the limit?
House auctions?
Hoping for a bargain plot including an affordable prefab house as a self-build (lots of work and potentially many worries)
Since I plan to start building within the next 24-36 months, my initial findings are sobering.
At least the construction company I work for could provide the foundation slab plus groundwork like drainage, etc., at a low cost. I also know structural engineers and others involved. Maybe the project can be realized with a “small” budget thanks to these circumstances.
Has anyone managed to do this before?
berny schrieb:
We had ours for even 20 years ...and then someone took it from you? That must have been terrible
H
hampshire14 Jun 2019 11:25Bardamu schrieb:
Am I ready to live with the bank for decades (usually 25 to 35 years) and give up freedom, holidays, and the good feeling of owing nothing to anyone? This is a very good question and has nothing to do with fear.
The term "freedom" is especially close to me. Freedom begins in your own mind. Regarding "living," owning a house does not make me more or less free than renting. The money goes out one way or another, and I can change the condition and location whenever I want.
The "good feeling of giving something up"—I’m still working on that and smile at my own self-deception in those attempts. Reflecting on giving things up has many positive aspects.
The "good feeling of owing nothing to anyone" is an interesting category. I approach it more holistically: I believe that, as social beings, humans need some form of interdependence for society and peace to function sustainably. The goal of functioning as a completely independent, self-sufficient individual may be desirable personally at first, but socially it is questionable. People always need help from time to time. This includes both the ability to give and to receive. Those who give without being able to receive create imbalance. Commitments to one another are the social glue.
Tassimat schrieb:
Unfortunately, in reality, you can’t just sell your house quickly. It’s like a new car: once driven one kilometer, it’s worth only half because it’s used. A bit exaggerated, but it’s similar with a house. At any rate, the additional purchase costs are gone. And the bank will probably want its early repayment penalty as well. That may be true, but it doesn’t have to be. We are currently selling our townhouse at over 100% above the total construction costs from 2001. That could have gone much worse. You might lose some money. So what? That’s just how it is when you realign your life. Imagine how many people go through the same when they separate. It’s all doable.
Only not having money or being unable to meet obligations is a tyrant. Everything else can be decided one way or another. Money comes and goes. Quality of life and time do not. This thought greatly simplifies setting priorities.
In the end, building a house is just building a house and not something anyone must do or avoid. For some, it fulfills a deep inner desire; for others, it’s a pragmatic cost-benefit consideration. Others avoid it to prevent tying themselves down with property and loans.
B
Buchweizen14 Jun 2019 11:54Bardamu schrieb:
Am I ready to pay rent to the bank for decades (for most people 25 to 35 years) and give up freedom, holidays, and the good feeling of owing nothing to anyone?
Where do these concerns come from?
Compared to living in a rental apartment, I feel much freer now in my “own” house (which will be fully paid off in 26 years^^).
We also haven’t given up on holidays. We probably won’t fly abroad every year or take 2-3 short trips anymore, but two vacations per year are still possible. From next year, once the landscaping is mostly completed, long-distance trips will be on the agenda again.
Ultimately, everyone has to decide for themselves what is important and when.
J
j.bautsch14 Jun 2019 13:27Buchweizen schrieb:
Compared to living in a rental apartment, I now feel much more freedom in my "own" (in 26 years^^) house. That’s exactly what I’m hoping for with my own property as well. Compared to renting, I’m much freer to do what I want with it. I can influence the floor plan and, within certain limits, also how the exterior looks. Everything according to my ideas.
I don’t have to accept whatever toilet my landlord installed. In a few years, I can have the kitchen plumbing relocated if I want a different layout.
I can add windows if it feels too dark.
And last but not least, I have a garden right in front of my house (well, not everyone wants a garden, of course—it also means work).
If after five years I don’t like something, I can change it! I don’t have to move out completely. To me, that means freedom.
And how tightly someone chooses to restrict their own so-called "corset," and how much money they set aside for vacations, is up to each individual. If a certain holiday is a must, then maybe you have to compromise on the house—that’s just a matter of "setting your priorities."
The term "freedom of renting" likely refers to the ability to pack up and move at any time. If this is important to you, building a house may not be the best option. If you want to invest, an apartment might be more suitable since it can be rented out at any time – I would not do that with a house.
