ᐅ Is Building a House Within My Budget Feasible? Or Should I Give Up on My Dream?
Created on: 13 Dec 2021 22:38
M
Marc240
Hello everyone,
I really appreciate this forum, I have read a lot and the feedback comes from practical experience and is very honest. Thank you for that. That’s why I’m posting my question here, asking for advice.
I am currently facing a dilemma with my dream of building a house. First, I am a fairly cautious person who prefers to avoid financial risks and calculates everything multiple times. I have been keeping a household budget for almost a year now, to avoid overestimating myself. On average, I have about 800€ (around $860) left per month for my project after deducting rent of 1400€ (about $1500). My net monthly income is approximately 3100€-3200€ (about $3350-$3450). During this time, I have lived normally without any restrictions.
I own a plot of land in a good location, fully paid off, which I conservatively estimate to be worth at least 100,000€ (about $108,000).
My equity amounts to roughly 60,000€ (around $65,000), but at least half of that should remain as a safety buffer.
Very roughly asked, is it possible to make something happen with that?
I was actually quite optimistic about it. But the currently steeply rising prices and the responses I have received—at least from prefabricated house suppliers—give me a very different impression.
My idea was actually to build a turnkey house, except for painting and flooring, with 110m2 (about 1184 sq ft) of living space, two full floors, a simple square shape, no basement, no dormers, balconies or projections, a normal standard for today without smart home features or the like, with a concrete slab foundation for well under 300,000€ (around $325,000). That’s a price per square meter of around 2300-2500€ (roughly $250-$270). Isn’t that unfeasible nowadays?
Including additional costs like earthworks, connection fees, architect fees, paving the access road, etc., I don’t want to exceed a total budget of 350,000€ (about $380,000). Furniture, kitchen, and similar items are not included.
This amount is the limit I have set for myself and believe I can manage with my saving rate.
Unfortunately, it doesn’t seem at all possible to get something for that anymore. Do you agree with me? Or is there still some hope?
The house is planned to be built in Rhineland-Palatinate.
Currently, I rent very cheaply! Sometimes I wonder why I’m driving myself crazy day and night, thinking about selling the land and just living a nice life. But then there’s this spark that just doesn’t let go, that won’t give up the dream.
Can you give me some advice?
I really appreciate this forum, I have read a lot and the feedback comes from practical experience and is very honest. Thank you for that. That’s why I’m posting my question here, asking for advice.
I am currently facing a dilemma with my dream of building a house. First, I am a fairly cautious person who prefers to avoid financial risks and calculates everything multiple times. I have been keeping a household budget for almost a year now, to avoid overestimating myself. On average, I have about 800€ (around $860) left per month for my project after deducting rent of 1400€ (about $1500). My net monthly income is approximately 3100€-3200€ (about $3350-$3450). During this time, I have lived normally without any restrictions.
I own a plot of land in a good location, fully paid off, which I conservatively estimate to be worth at least 100,000€ (about $108,000).
My equity amounts to roughly 60,000€ (around $65,000), but at least half of that should remain as a safety buffer.
Very roughly asked, is it possible to make something happen with that?
I was actually quite optimistic about it. But the currently steeply rising prices and the responses I have received—at least from prefabricated house suppliers—give me a very different impression.
My idea was actually to build a turnkey house, except for painting and flooring, with 110m2 (about 1184 sq ft) of living space, two full floors, a simple square shape, no basement, no dormers, balconies or projections, a normal standard for today without smart home features or the like, with a concrete slab foundation for well under 300,000€ (around $325,000). That’s a price per square meter of around 2300-2500€ (roughly $250-$270). Isn’t that unfeasible nowadays?
Including additional costs like earthworks, connection fees, architect fees, paving the access road, etc., I don’t want to exceed a total budget of 350,000€ (about $380,000). Furniture, kitchen, and similar items are not included.
This amount is the limit I have set for myself and believe I can manage with my saving rate.
Unfortunately, it doesn’t seem at all possible to get something for that anymore. Do you agree with me? Or is there still some hope?
The house is planned to be built in Rhineland-Palatinate.
Currently, I rent very cheaply! Sometimes I wonder why I’m driving myself crazy day and night, thinking about selling the land and just living a nice life. But then there’s this spark that just doesn’t let go, that won’t give up the dream.
Can you give me some advice?
hampshire schrieb:
Crazy idea:
Is it actually possible to create a pond, place the house on a pontoon, and bypass building regulations by living on a boat? Your house-boat must not be permanently connected to the land (no anchors, utility connections, etc.). So you would have to get into your rowboat each time and paddle over to your "house."
Alongside "checking what is needed and what it costs," I would start reaching out to potential lenders. Based on our experience, full financing usually comes with an interest rate surcharge that increases your monthly payment. Especially if you are planning to have children, it makes sense to reconsider how you want to manage this.
Marc240 schrieb:
The question I have is, can I manage to build something for around 350k with the few basic requirements mentioned in the original post?You really need to start by contacting the suppliers! We’re building near the border to Lower Saxony and don’t have the extreme prices reported here.
Hausbautraum20 schrieb:
Terraced houses offered in a development with 110 sqm (1,184 sq ft).
They have two children's rooms of 13 sqm (140 sq ft), a bedroom of 15 sqm (161 sq ft), and even an office of 9 sqm (97 sq ft).
So, 110 sqm is definitely livable!I completely agree! My terraced house was only 106 sqm (1,141 sq ft) but still felt quite spacious, except for the kitchen, which was rather small (7 sqm / 75 sq ft). And in that neighborhood, only families with one to three children lived in those types of terraced houses!
saralina87 schrieb:
The base house would have cost 330,000 without any upgrades.Our house is being built with 153 sqm (1,647 sq ft) according to the Energy Saving Ordinance, including controlled ventilation, and with upgrades or special requests, the price for the base house is €303,054.15.
Contract was signed in November 2020. If the OP’s area isn’t too overpriced, you should be able to build a nice house for around 350k.
P
Pinkiponk15 Dec 2021 10:42Marc240 schrieb:
So a price per square meter of around 2300-2500 €. Isn’t that achievable these days? That is definitely achievable. Have you ever visited a model home park? Maybe you can take a look there soon. They usually have brochures and offers that seem affordable and probably are. These houses only become more expensive if you deviate from the standard, as my husband and I (unfortunately) have done by now. Make sure to mention right away that you already own a plot of land; they will then make an effort to win you as a customer. But don’t sign anything spontaneously, no matter what promises, discounts, or other offers you receive.
By purchasing the land, you have already taken the first and right step. Congratulations on that, and best of luck moving forward. Feel free to keep me/us updated on your progress. And please don’t be discouraged—there are always one or two hurdles along the way.
(By the way, we are building at around 2,500 euros per square meter if I haven’t miscalculated.)
Hello,
where in Rhineland-Palatinate (RLP) are you from?
We finished about a week ago in the northern part of RLP.
However, we did a lot of the work ourselves (interior finishing: heating and plumbing completely DIY, tiling, wallpapering, flooring, electrical work—cables pulled by ourselves, electrician connected everything afterward), so it might be hard to compare. We built a bungalow with 141 m² (1,517 sq ft) and a 35 m² (377 sq ft) garage (connected), on a 1005 m² (0.25 acres) plot, with relatively high-end fittings.
(Tiles 60x60 and 60x120 cm (24x24 and 24x48 inches)), bathroom with freestanding bathtub and complete Villeroy & Boch fixtures, guest toilet also fully Villeroy & Boch, five motorized venetian blinds in the living room, otherwise electric roller shutters, six floor-to-ceiling windows.
The house including the garage cost me about €255,000. The rest of the trades were arranged as DIY contracts. Construction supervision was provided by an independent expert.
Compared to some other regions, prices in northern RLP are still quite reasonable.
So depending on the area within RLP, these prices per square meter are achievable.
Best regards
where in Rhineland-Palatinate (RLP) are you from?
We finished about a week ago in the northern part of RLP.
However, we did a lot of the work ourselves (interior finishing: heating and plumbing completely DIY, tiling, wallpapering, flooring, electrical work—cables pulled by ourselves, electrician connected everything afterward), so it might be hard to compare. We built a bungalow with 141 m² (1,517 sq ft) and a 35 m² (377 sq ft) garage (connected), on a 1005 m² (0.25 acres) plot, with relatively high-end fittings.
(Tiles 60x60 and 60x120 cm (24x24 and 24x48 inches)), bathroom with freestanding bathtub and complete Villeroy & Boch fixtures, guest toilet also fully Villeroy & Boch, five motorized venetian blinds in the living room, otherwise electric roller shutters, six floor-to-ceiling windows.
The house including the garage cost me about €255,000. The rest of the trades were arranged as DIY contracts. Construction supervision was provided by an independent expert.
Compared to some other regions, prices in northern RLP are still quite reasonable.
So depending on the area within RLP, these prices per square meter are achievable.
Best regards
W
WilderSueden17 Dec 2021 22:26Marc240 schrieb:
I’m also looking at a maximum of 1,200 € per month. Plus the option for extra repayments at the end of the year. With a loan of 350,000 € and 1% interest, you’d be done in 28 years. The interest rate is likely to increase to your disadvantage before then. A monthly payment of 1,200 € is quite tight financing for this. You could consider it if you expect a significant salary increase, but as I said… it’s borderline.
That’s why I wouldn’t just focus on the financial side but also carefully review the partnership. You say your partner supports you, but will that really hold up when you spend long evenings at the computer going through construction specifications? Attending around 10 meetings (which she obviously has to join) with building companies until you make a decision? How does she feel about moving into “your house”? How would you both manage if she stopped working for 1, 2, or 3 years because of children? Building a house is a strain on both of you.
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