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?
face26 schrieb:
What exactly do you mean by the 250k net?
You don’t mean without VAT... just pure construction costs? Berlin85 schrieb:
250,000 net + additional construction costs equal to the amount of equity B
boxandroof12 Jun 2019 23:51Lumpi_LE schrieb:
1-2%... That’s less than inflation, so you could say as long as you have a loan, you’re making a profit – to put it bluntly. Right now, there’s nothing better than taking on debt. Debt increases your personal risk. 20+ years is a long time. In private life, many things can happen: property prices or rental income can fall, the euro itself can weaken, the political situation can change, and drastic laws might be introduced.
In many cases, having little or no debt might be the better option. Or maybe not.
Without necessity, I wouldn’t recommend taking on too much debt, no matter how cheap the money is.
H
hampshire13 Jun 2019 00:02We are increasingly getting used to an anxious, overly cautious behavior focused on preservation. What quality of life can a person striving solely for safety have?
A "few years" ago, Epicurus already noted: "It is possible to gain security in relation to others, but when it comes to death, we humans all live in a city without walls."
A "few years" ago, Epicurus already noted: "It is possible to gain security in relation to others, but when it comes to death, we humans all live in a city without walls."
B
boxandroof13 Jun 2019 00:15I don’t want to preach a “comprehensive insurance” mentality. Moderation is a virtue that also seems to be disappearing.
Owning your own home is already a form of security, not only financially.
The average nomad is probably happier than the average home builder.
Owning your own home is already a form of security, not only financially.
The average nomad is probably happier than the average home builder.
ypg schrieb:
Can you explain this to me? What is net? What is gross? Property? Sorry, I’m a bit lost.
boxandroof schrieb:
I don’t want to preach a “comprehensive insurance” mentality. Moderation is a virtue that also seems to be lost these days.
Owning a house is already a form of security, not just financially.
The average nomad is probably happier than the average homebuilder.The rental nomad?
Everyone has to define risk for themselves. But you also have to stay realistic.
If you never leave the house, you won’t be surprised by bad weather… but you also won’t get much sunshine.
If someone wants to be finished in 25 years with a net income of over 4,000 (I get the net part) and ends up with 250,000, that results in a monthly payment of 1,000. Under these conditions, you can’t really finance a house with that.
But that has nothing to do with being unable to afford it.