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?
Bardamu schrieb:
And from some comments, you can already tell that some people don’t know how but went ahead and did it anyway I don’t think this is really about the issue being discussed.
It’s about the fact that you can’t get a loan.
Because when it comes to property, whether used or from a forced sale, you have nothing. You have to pay in cash. And there’s more likely to be a bargain that you can theoretically afford.
It’s just that you talk about saving alongside paying rent, which all of us who have already built or are currently building have already gone through. Rent payments while slowly building up a financial cushion. And now you come along wanting to do everything differently and criticize the whole idea, although your calculations don’t really convince anyone here. And if you’re honest: not even yourself.
TR188 schrieb:
And continuing regarding the original post:
If you think you can get a house for the price you have in mind + land + additional costs, then that’s great. Then what is the purpose of this thread if you’re going to manage it anyway and see the opinions and questions here only as attacks on you? The original post is not from @Bardamu, but from someone in Berlin who has long since withdrawn.
ypg schrieb:
The original post is not from @Bardamu, but from someone in Berlin who has long since withdrawn.I was referring to the thread creator (if they are still involved at all), not the advocate of rent saving.
A landlord is not going to give anything away for free and likely expects some profit. After all, they have a significant investment (namely the property for rent) to cover before any income comes in. On the plus side for them, they may be able to deduct mortgage interest for tax purposes.
Otherwise, it makes sense that a comparable property for rent cannot be cheaper than buying, since the landlord also has to cover the purchase price and pay for all repairs from the rent—repairs that an owner-occupier would also have to handle. The latter might be quicker to replace something if they no longer like the design.
The point is, at least as far as I know, single-family houses with gardens are rarely available for rent. I know exactly one family renting a single-family house. And when I have searched, I have almost never seen an appropriate offer. Only once did I find a townhouse with about 90m² (970 sq ft) of living space and a small garden, with rent as high as the current mortgage payment on my 110m² (1,185 sq ft) single-family house. Oh, and once I saw a single-family house for sale listed with loyal tenants living in it...
I think the demand for "living in a single-family house with a garden" is not met by the rental market offerings in this segment.
Yes, compared to my 70m² (750 sq ft) prefabricated apartment, my housing costs will double in the future. But I get one and a half times the space, a small plot of land, and a significant improvement in all rooms and in comfort. You can’t really compare that and claim that, as a renter, I saved a lot!
Otherwise, it makes sense that a comparable property for rent cannot be cheaper than buying, since the landlord also has to cover the purchase price and pay for all repairs from the rent—repairs that an owner-occupier would also have to handle. The latter might be quicker to replace something if they no longer like the design.
The point is, at least as far as I know, single-family houses with gardens are rarely available for rent. I know exactly one family renting a single-family house. And when I have searched, I have almost never seen an appropriate offer. Only once did I find a townhouse with about 90m² (970 sq ft) of living space and a small garden, with rent as high as the current mortgage payment on my 110m² (1,185 sq ft) single-family house. Oh, and once I saw a single-family house for sale listed with loyal tenants living in it...
I think the demand for "living in a single-family house with a garden" is not met by the rental market offerings in this segment.
Yes, compared to my 70m² (750 sq ft) prefabricated apartment, my housing costs will double in the future. But I get one and a half times the space, a small plot of land, and a significant improvement in all rooms and in comfort. You can’t really compare that and claim that, as a renter, I saved a lot!
Joedreck schrieb:
Of course, you would have saved money. But not only money, also (for you) comfort.
You pay for this comfort, which is why owning a single-family home is a luxury.
Everyone probably agrees that living conditions are usually not comparable. That’s true, but the point I wanted to make is this: if I wanted to rent my single-family house because I want the comfort, I would have to pay a correspondingly high rent! Much more than for the apartment mentioned above. Probably, excluding utilities, even more than the mortgage payment, judging by the prices in our city.
As a tenant, I might only have an easier way to reduce costs if the comfort is no longer worth the extra expense to me.
We decided to build a house simply because, sooner or later, we would no longer have been able to afford renting an apartment, whereas a house was affordable in terms of the monthly expenses. Had I known how things would turn out, I should have built two houses from the start.
Because today (only about 9 years later), I could sell my house at a 200% profit. Even after all costs and expenses, taxes, and early repayment fees, there would still be a 100% profit.
Relevant to the original poster, within Berlin.
Because today (only about 9 years later), I could sell my house at a 200% profit. Even after all costs and expenses, taxes, and early repayment fees, there would still be a 100% profit.
Relevant to the original poster, within Berlin.
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