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?
Yosan schrieb:
I can still accept back taxesI can’t. Not in the sense of "they have to be immediately and clearly four digits." First, you’re not completely helpless here—you can influence the final amount quite well by choosing the right tax class, and second, it’s not like it hits you unexpectedly from behind—the rough outcome is known once you file the return. So, especially when known risks for additional payments exist (for example, parental benefits or unemployment benefits in certain cases or very uneven incomes), you simply file the return in March and can then leave it pending if needed until the end of July. And even THEN it still needs to be processed…And I have NOTHING left at the end of the month and can still be spontaneous and social. I also have an iMac (alongside an iPad and iPhone). Because all of that is factored in. That’s how I plan to keep things in the house as well.
Farilo schrieb:
I understand what you mean. But if we’re already talking about necessity, having five children wasn’t a necessity back then either...
Both then and now, to a large extent, everyone is the architect of their own fortune.I don’t think my parents were unhappy. They would have liked to continue renting the house, but they were not opposed to the idea of homeownership either... they just planned to approach it at a later time. Because of that, they were done paying off the mortgage by around age 50 and are now enjoying their lives more accordingly.
H
HilfeHilfe19 Jun 2019 07:58Things used to be different, especially in rural areas.
There were no rental apartments, people always built XXXXL houses, land was inexpensive, and neighbors helped each other.
That's why there are many affordable houses scattered throughout the villages.
Why? No one wants to maintain the XXL houses anymore, parents move into care facilities, and children relocate to expensive urban areas.
There were no rental apartments, people always built XXXXL houses, land was inexpensive, and neighbors helped each other.
That's why there are many affordable houses scattered throughout the villages.
Why? No one wants to maintain the XXL houses anymore, parents move into care facilities, and children relocate to expensive urban areas.
Farilo schrieb:
I understand.
You rightly assume that there is “enough” money available. Maybe not immediately, but it will come in eventually.
If the financial situation looks like what you describe—meaning you can save for it over time—then that’s a legitimate approach. I’m not arguing about that. Everyone has to define their own limits and manage accordingly.
But if financing is calculated to the absolute maximum and in the end there’s no room for saving, then in my opinion it’s a complete misstep to go with Prohaus. Even if it “basically” fits. Anyone who can just barely cover the unavoidable essentials at the lowest level and ends up with a 1€ surplus at the end of the month is overextending themselves. I think we agree on that.
Personally, I have my standards (for example, for my car or clothing), and I don’t want to go for the cheapest options. I also have an expensive hobby that I’m not willing to give up for a house. When I factor all of this into my household budget, I still end up with a surplus that I can use for vacations, other types of luxury, or savings.
What someone considers a luxury worth spending their surplus on, or what they see as unnecessary extras, can be debated endlessly.
The important thing is for everyone to honestly assess their lifestyle. What matters to me? What am I unwilling to give up? Then keep a budget and look at how much that desired standard costs per month. Only what’s left after that is a real surplus.
For me, by the way: without buying a house, I would still be working part-time (it was 90%, so quite a lot, but now 100% makes a noticeable difference in both time and finances—the latter mainly because that income is pure surplus). I have also reduced my hobby expenses somewhat. That was worth it to me for the house.