ᐅ Is Buying a House a Wise Decision in the Current Market Situation?
Created on: 23 Sep 2020 14:32
A
Alibert87
Good day and hello everyone,
Some time ago, I joined this forum to gather information and read experience reports.
I would like to get your neutral opinion on whether buying property at this time would be advisable. We currently rent in a "very good location" and would like to purchase a home here. Many properties are sold "off-market" or only available at very high prices (I’m talking well over 500,000). There is no land available for development; if there is, a property is demolished and rebuilt. I want to gather some input on whether this whole situation is crazy or if such a project is feasible.
Since we don’t have a specific property in view yet but have been monitoring the market for about 1.5 years and have already done quite a few viewings, I assume the median price for homes or condominiums that suit us would be around 600,000.
He, 33 years old, permanently employed in the public sector, net income 2,600 euros (plus 14 monthly payments plus bonus, around 5,000) – from 2021 about 3,000 net (fixed)
She, 32 years old, permanently employed part-time, 25 hours per week, net income 2,300 (plus additional payments around 2,000)
1 child (child benefit) – possibly a second child within the next 3–5 years
Married, tax class 4
Equity around 110,000 (plus 30,000 as a buffer)
Regarding equity, I have a question: Are bank conditions tiered, so that having, for example, 10,000 more in equity results in a better loan offer (how does this tiering work)?
We are really torn whether or not to take this step. It feels very surreal to spend so much money on housing.
I am grateful for any advice
Regards
Some time ago, I joined this forum to gather information and read experience reports.
I would like to get your neutral opinion on whether buying property at this time would be advisable. We currently rent in a "very good location" and would like to purchase a home here. Many properties are sold "off-market" or only available at very high prices (I’m talking well over 500,000). There is no land available for development; if there is, a property is demolished and rebuilt. I want to gather some input on whether this whole situation is crazy or if such a project is feasible.
Since we don’t have a specific property in view yet but have been monitoring the market for about 1.5 years and have already done quite a few viewings, I assume the median price for homes or condominiums that suit us would be around 600,000.
He, 33 years old, permanently employed in the public sector, net income 2,600 euros (plus 14 monthly payments plus bonus, around 5,000) – from 2021 about 3,000 net (fixed)
She, 32 years old, permanently employed part-time, 25 hours per week, net income 2,300 (plus additional payments around 2,000)
1 child (child benefit) – possibly a second child within the next 3–5 years
Married, tax class 4
Equity around 110,000 (plus 30,000 as a buffer)
Regarding equity, I have a question: Are bank conditions tiered, so that having, for example, 10,000 more in equity results in a better loan offer (how does this tiering work)?
We are really torn whether or not to take this step. It feels very surreal to spend so much money on housing.
I am grateful for any advice
Regards
B
Benutzer2001 Apr 2022 08:09BackSteinGotik schrieb:
And when you really need to approach it energetically the right way (this will definitely come up in 2023, 2024), I’m not sure how feasible DIY still is (underfloor heating, insulation, etc.) – These are exactly the types of trades where a lot of DIY is possible: insulating the basement ceiling = 100% DIY easily achievable, insulating the roof or upper floor ceiling = 100% DIY easily achievable, underfloor heating = laying insulation on a concrete slab and installing underfloor heating pipes is ideal for DIY (and foolproof, as many heating contractors even provide a full warranty on the entire underfloor heating system).
Facade insulation becomes more challenging.
Alibert87 schrieb:
We have explored many options over the past 3 years, considering various approaches like leasehold, rent-to-own, polishing tools, writing letters, etc. Did you actually put this into practice? Did you really send letters expressing your interest in buying everywhere? What kind of response did you get?
Just yesterday, I saw a new notice in the supermarket, drawn by children, where a family is looking for a house. Two of the notes with the phone number had even been torn off.
Question: How many children do you have that you need at least 5 rooms?
Benutzer200 schrieb:
These are, for example, trades where a lot of DIY work is really possible: insulating the basement ceiling = 100% DIY easily achievable, insulating the roof / upper floor ceiling = 100% DIY easily achievable, underfloor heating = laying insulation on a concrete floor and installing underfloor heating pipes is ideal for DIY (and foolproof, since many heating engineers even guarantee the entire underfloor heating system).
Facade insulation becomes more challenging. I agree with that. Apart from facade insulation, roof covering, and electrical work, you can do quite a bit yourself. Although you can also prepare the electrical work. In the end, it always depends on time and skill.
A
Alibert871 Apr 2022 10:05Tassimat schrieb:
Did you implement this as well? Did you really drop letters expressing purchase interest everywhere? What kind of response do you get from that?
Just yesterday, I saw a new handmade notice in the supermarket made by children, with a family looking for a house. There were even two small slips torn off with the phone number.
Question: How many children do you actually have that you need at least 5 rooms? We have done it that way and still do (about 80 letters and 10 personal visits). The response rate (we keep track of this, noting where, who, and what replied) is good in my opinion. We receive feedback for about 2 out of 10 inquiries (whether by letter or personal conversation). It became more concrete with 3 properties, but in the end, we were unlucky (an inheritance group couldn’t agree, so the property ended up with the realtor anyway).
We have a toddler and a baby (yes, it would also work in our current apartment, but we need an office, and each child having their own room would be quite nice during their teenage years : ) ).
Interesting, I didn’t expect to get so much feedback.
Then it would have still been possible to buy it. How far apart were the price expectations?
Alibert87 schrieb:
The property eventually went to a real estate agent
Then it would have still been possible to buy it. How far apart were the price expectations?
Similar topics