ᐅ Is it Practical to Build a Single-Family Home as a Single Person?
Created on: 28 Oct 2016 23:34
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p2007Hello,
I am currently in the planning phase for my own home. A little about me: I am 31 years old and a civil servant. My current net income is €2,650 and it is expected to rise to around €3,300 net over the next 10 years. Recently, I inherited a 700m² (7,535 sq ft) plot of land, valued at approximately €250,000 according to the local land price index. I would like to build on this property. Besides the land, I have about €15,000 in savings. The plan is to build a single-family house worth around €300,000. I have an architect in the family who is providing the full planning and coordination free of charge.
The idea is that I will build the house on my own. Although I have a girlfriend, she would at most contribute some rent and therefore would not be officially involved. However, I have the following question:
Does it make sense to build a house as a single person?
I have a girlfriend, but we have not been together long enough for me to be sure it is a lasting relationship. I keep going back and forth, wondering if the comfort and luxury of owning a home justifies the high monthly expenses. I am quite worried that I might be overestimating myself and that I could end up living alone in the house, unable to manage the costs. On the other hand, I think I can start financing a home now that will be paid off by the time I retire. Does anyone else experience these constant doubts, and what have your experiences been afterward? I keep telling myself that as a “single” person, I shouldn’t build a house.
Thank you for your replies and have a great evening!
Best regards, Chris
I am currently in the planning phase for my own home. A little about me: I am 31 years old and a civil servant. My current net income is €2,650 and it is expected to rise to around €3,300 net over the next 10 years. Recently, I inherited a 700m² (7,535 sq ft) plot of land, valued at approximately €250,000 according to the local land price index. I would like to build on this property. Besides the land, I have about €15,000 in savings. The plan is to build a single-family house worth around €300,000. I have an architect in the family who is providing the full planning and coordination free of charge.
The idea is that I will build the house on my own. Although I have a girlfriend, she would at most contribute some rent and therefore would not be officially involved. However, I have the following question:
Does it make sense to build a house as a single person?
I have a girlfriend, but we have not been together long enough for me to be sure it is a lasting relationship. I keep going back and forth, wondering if the comfort and luxury of owning a home justifies the high monthly expenses. I am quite worried that I might be overestimating myself and that I could end up living alone in the house, unable to manage the costs. On the other hand, I think I can start financing a home now that will be paid off by the time I retire. Does anyone else experience these constant doubts, and what have your experiences been afterward? I keep telling myself that as a “single” person, I shouldn’t build a house.
Thank you for your replies and have a great evening!
Best regards, Chris
Hello!
If you currently feel like a single person, maybe you should first think about the status of your relationship?
I don't really understand why you want to start building already. Is there any reason not to wait another two or three years, save up, strengthen your relationship, and then start building?
If you currently feel like a single person, maybe you should first think about the status of your relationship?
I don't really understand why you want to start building already. Is there any reason not to wait another two or three years, save up, strengthen your relationship, and then start building?
The attractive interest rates at the moment and the fact that I inherited a plot of land are clear reasons in favor of building. Another major factor is my current living situation, which I want to change as soon as possible… sooner or later, I definitely want to build. The dream of owning a home is already very concrete and strong!
Hello Chris,
If the location in BI and the commute to work are suitable, consider a semi-detached house, meaning splitting the plot. There are also areas in BI where on a similar plot size, three or even four houses (two semi-detached houses) are built. These are small houses for 1-2 people, which would have the advantage for you that, in the best case, you could increase your equity by about +200,000€ (approx. 220,000 USD), meaning you would more or less not need a loan.
In addition, your land price is probably still estimated low – if the shape of the plot is good, you could also sell based on the standard land value. Your architect should have contacts with local investors and be able to assess this.
Another option is to sell the plot and buy/pay a down payment on a condominium. The loan amount would then be manageable. If your life situation changes reliably, you can then use the apartment as equity for your new build – however, this means you will enter into a competition for a building plot in BI; this option is therefore only smart if you are willing and able to live outside the city where land values are not as high as in the urban area.
Best regards,
Dirk Grafe
If the location in BI and the commute to work are suitable, consider a semi-detached house, meaning splitting the plot. There are also areas in BI where on a similar plot size, three or even four houses (two semi-detached houses) are built. These are small houses for 1-2 people, which would have the advantage for you that, in the best case, you could increase your equity by about +200,000€ (approx. 220,000 USD), meaning you would more or less not need a loan.
In addition, your land price is probably still estimated low – if the shape of the plot is good, you could also sell based on the standard land value. Your architect should have contacts with local investors and be able to assess this.
Another option is to sell the plot and buy/pay a down payment on a condominium. The loan amount would then be manageable. If your life situation changes reliably, you can then use the apartment as equity for your new build – however, this means you will enter into a competition for a building plot in BI; this option is therefore only smart if you are willing and able to live outside the city where land values are not as high as in the urban area.
Best regards,
Dirk Grafe
It is possible to improve your living situation without building a house.
For example, moving in with your girlfriend into a shared apartment… (This also has the advantage of allowing you to test whether you can live together.) This will probably be much faster than building a house.
If you are determined to go through with it and accept the risk of ending up moving in alone: then go to the bank and discuss your loan limit — but only for yourself, WITHOUT counting on your girlfriend’s rent as a financial buffer. If you were to break up, the rent would no longer be available.
Whether you can get a loan of 300,000 (presumably more; the 15,000 would be, for me, a non-negotiable buffer for a new car, etc.) on your own, I cannot assess.
For example, moving in with your girlfriend into a shared apartment… (This also has the advantage of allowing you to test whether you can live together.) This will probably be much faster than building a house.
If you are determined to go through with it and accept the risk of ending up moving in alone: then go to the bank and discuss your loan limit — but only for yourself, WITHOUT counting on your girlfriend’s rent as a financial buffer. If you were to break up, the rent would no longer be available.
Whether you can get a loan of 300,000 (presumably more; the 15,000 would be, for me, a non-negotiable buffer for a new car, etc.) on your own, I cannot assess.
I wouldn’t take on such a large loan. When you own a house, you’re tied down, and if you ever want to move because of a girlfriend, for example, it can be complicated. You still have to pay off the loan, and you’ll likely only be able to sell the house at a loss. The 300,000 euros for the house isn’t the whole story—you also need to budget for additional construction costs, landscaping, furnishings... all of that adds up. I would suggest saving a bit more first so you don’t have to finance the entire house.
Best regards,
Sabine
Best regards,
Sabine