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?
Farilo schrieb:
This is exactly the kind of post I mean...
Paying 50% of your net income and justifying it by twisting the numbers.
Okay, if you earn 10,000 to 15,000 and are expecting an inheritance, then you can do that.
Anything else is, IN MY OPINION, just clever accounting.
And those comparisons again and again... What would a similar house cost you in rent, etc...
I can’t buy a 300-meter yacht, even if I compare the monthly rent of such a yacht and find it more expensive than the purchase price.
Sometimes you just have to face facts and accept that you can’t afford it if you want to have a life outside the four walls.
But as I said... Some people are fine paying 50% or more of their net income on the house.
Others have different ideas about life than living restricted for 30 years. If you want to live a real high-roller lifestyle—flying to Vegas with the guys once a quarter for poker and driving a Porsche to work—okay, I get it. I can’t afford that and I’d probably be a bit jealous.
But I’d bet a cookie that your life isn’t cooler than mine, even though I have a nice big house—and you don’t.
At the end of the day, you park your money at 0.01% interest in a savings account because mutual funds seem too risky, and still drive a 10-year-old car.
Finding a suitable plot of land to build on within Berlin without making significant compromises will already be quite a challenge. Large developers have been buying up everything for years and are building entire housing estates. Individual parcels are sold at exorbitant prices and often never reach the open market, instead being traded privately.
Exactly like that. My wife and I also wanted to build in Berlin or its outskirts, but nowadays there is usually a well-connected developer, general contractor, or real estate agent involved, which significantly drives up the prices. After months of searching, we moved a bit further out and actually managed to find a real bargain in terms of land.
Lumpi_LE schrieb:
Really? My parents paid off their mortgage in 15 years and had originally planned for a maximum of 20 years. Still, the interest they paid was almost as much as the loan itself. Yes, prices back then are worth nothing today.
My parents paid 160,000 for the plot (650m² (7000 sq ft)) plus house (early 2000s) in Müggelheim (a suburb of Berlin). Nowadays, for that price, you might, but only might, still get the land alone...
Spike86 schrieb:
My parents paid 160,000 for a plot of land (650m² (7000 sq ft)) plus house (early 2000s). In Müggelheim (the greater Berlin area). Today, for that price you might still get just the land, but only maybe... We just paid 180 euros per square meter (around 17 km before the city limits). At first, I thought that was quite steep too, but I have since learned otherwise. For example, I met with a friend from Frankfurt am Main in early April, and he just laughed at me when I started to complain a bit about the price.
Spike86 schrieb:
Today, for that price, you might, but only might, still get the land alone...Yes, that’s clear. The question was also about people committing themselves to a 40-year loan at 8% interest.