Hello everyone,
I am married and have a one-year-old son.
My wife and I are both 30 years old.
We come from the area south of Baden-Württemberg – around Freiburg.
Both of us have above-average incomes.
My wife is currently on parental leave.
We finally acquired a plot of land three months ago through a private sale at a reasonable price.
[300m2 (3200 sq ft) for about 125,000 Euros including additional costs].
Now we have gathered several offers from prefabricated house suppliers, both solid construction and timber frame, etc.
When we calculated everything, the total cost of the entire building project—without the land, including additional costs, exterior works, kitchen, etc.—comes to about 600,000 Euros, truly turnkey, with a buffer included.
Here is the problem.
With the current interest rate, despite owning the land outright [equity], we cannot finance it.
The monthly burden is too high (around 2300–2500 Euros, including an L-Bank loan, which is currently basically in limbo with the state bank).
My idea is to buy a condominium first.
(Secure the land, fully paid (125,000 Euros)).
Our current apartment is too small for the long term.
Financing a condominium would be much easier since the loan amount is significantly lower than for building a house.
We will definitely inherit something in the coming years (the older generation has not yet passed anything on in advance, unfortunately, when it was needed).
My plan would be to buy and live in the condo, paying it off monthly.
Once the inheritance comes through, fully pay off the condo and then build the house. That way, we have the security of owning a paid-off condo and monthly rental income to support the repayment of the house loan.
What do you think? Do you have other ideas?
Regards,
Peter
I am married and have a one-year-old son.
My wife and I are both 30 years old.
We come from the area south of Baden-Württemberg – around Freiburg.
Both of us have above-average incomes.
My wife is currently on parental leave.
We finally acquired a plot of land three months ago through a private sale at a reasonable price.
[300m2 (3200 sq ft) for about 125,000 Euros including additional costs].
Now we have gathered several offers from prefabricated house suppliers, both solid construction and timber frame, etc.
When we calculated everything, the total cost of the entire building project—without the land, including additional costs, exterior works, kitchen, etc.—comes to about 600,000 Euros, truly turnkey, with a buffer included.
Here is the problem.
With the current interest rate, despite owning the land outright [equity], we cannot finance it.
The monthly burden is too high (around 2300–2500 Euros, including an L-Bank loan, which is currently basically in limbo with the state bank).
My idea is to buy a condominium first.
(Secure the land, fully paid (125,000 Euros)).
Our current apartment is too small for the long term.
Financing a condominium would be much easier since the loan amount is significantly lower than for building a house.
We will definitely inherit something in the coming years (the older generation has not yet passed anything on in advance, unfortunately, when it was needed).
My plan would be to buy and live in the condo, paying it off monthly.
Once the inheritance comes through, fully pay off the condo and then build the house. That way, we have the security of owning a paid-off condo and monthly rental income to support the repayment of the house loan.
What do you think? Do you have other ideas?
Regards,
Peter
Sunshine387 schrieb:
I’m just wondering why someone didn’t simply buy a semi-detached house/townhouse from a developer a few years ago for around 450,000 to 500,000.The original poster is only 30 years old. I think it’s normal that someone at that age wouldn’t have building a house or financing options and interest rates on their radar yet. Why would they? Without children, renting an apartment is a great option. Now the trigger is the missing children’s bedroom. For the thread starter, the journey begins now, and for countless others, it starts sometime in the future—regardless of whether the timing was, is, or will be good or bad.H
HilfeHilfe9 Jan 2023 06:32This project is too much. Anyone who settles in an apartment now won’t start building again in a few years. Why would they? Children grow up.
Tassimat schrieb:
The original poster is only 30 years old. I think it’s normal not to have much awareness about house building and financing or interest rates at that age. Why would you? Without children, renting is a great option. Now the trigger is simply the lack of a children’s room. For the thread starter, the journey is just beginning, and for countless others, the journey starts at some point in the future, completely independent of whether the timing was, is, or will be good or bad. Thanks for a down-to-earth contribution. That’s exactly how it is.
We were focused on other things and had no equity because of training and further education at work. Also, we don’t get any financial support from parents or anything like that, unlike some others. Having 125,000 euros (about 135,000 USD) in equity at 30, married, with one child, is something you don’t just have unless someone throws the money at you.
@Marvinius
The architect attended the building meeting with the turnkey builder; so far he hasn’t cost us anything. When we sign the contract, his fees are included in the turnkey home price. For a breakdown of costs, see a few posts earlier.
With that said…..
B
Bertram1009 Jan 2023 08:08irmsche schrieb:
125k in equity at age 30, married with one child, that’s something to achieve without anyone just handing you the money.Then the money was actually handed to you. Probably by your employer. It’s an illusion that you earned it because of outstanding performance or being so great.W
WilderSueden9 Jan 2023 09:07irmsche schrieb:
Solid 55cm (22 inches) Ytong walls, 9.84m (32.3 ft) length - 9.50m (31.2 ft) width, basement, ground floor, upper floor, garage with roofed connection to the house.
Total basement area approx. 60m2 (645 ft2)
Ground floor approx. 60m2 (645 ft2)
Upper floor 60m2 (645 ft2)
House price 455,000
Garage with roofed connection 28,000
Estimated additional construction costs 80,000
= 563,000 excluding landscaping, kitchen, lighting The basement really adds up, and in multiple ways. Firstly, because of the costs for the basement itself, and secondly due to the higher expenses for excavation work. I understand that you want a basement on such a small plot, but without a basement and without a garage, you would be looking at around 500k instead of 600k.
At this point, the garage is simply an incredible luxury, as is elaborate lighting. If the budget is tight, you can go to the home improvement store and get a few lamps for 30-50€. Designer pieces can always be replaced later.
irmsche schrieb:
We will definitely inherit something in the next few years as well Yes, I know that relying on an inheritance is always tricky and you shouldn’t count on it, but you could postpone the garage, landscaping, and maybe a few other things like a second bathroom if available, to a later stage and thus reduce costs.
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