Hello, I am Scotty from the beautiful Schleswig Holstein! We have been thinking about it a bit, and after receiving a termination notice for personal use from our landlord, we believe it makes more sense for us to finance our own house rather than someone else’s. However, we have no idea which direction to go. Finding properties to buy is like looking for a needle in a haystack, and building feels too far away and hardly feasible. Perhaps we’re considering a small Frisian-style house, nothing big. But we really don’t know what to expect financially, what to plan for regarding the plot of land and associated costs. Together, we have a household net income of roughly 3000–3400 € (approximately 3200–3600 USD), but my job income isn’t always consistent down to the exact euro. Does building even make sense in this situation?
Unfortunately, the COVID-19 crisis depleted our savings, so we would have to start completely from scratch. I would be grateful for an initial assessment from experienced home builders before we make a fool of ourselves out there in the market. Many thanks =)
Unfortunately, the COVID-19 crisis depleted our savings, so we would have to start completely from scratch. I would be grateful for an initial assessment from experienced home builders before we make a fool of ourselves out there in the market. Many thanks =)
Scotty6986 schrieb:
The landlord situation here is that he is trying to fraudulently evict us from the apartment. He is a real estate agent and owns nearly all the properties he rents out himself. Not long ago, he built several apartments—around 60 units—all newly rented out. On our property, the house next door had an apartment that was vacant for a long time and was just recently rented out again. He should have considered these apartments first before terminating our lease. Moreover, he owns a large townhouse in the town as well as a big house further north. The whole matter is with a lawyer, and there is substantial other serious evidence against him, which I won’t go into detail about now. Even if we win the case 98%—which all lawyers currently expect—it wouldn’t be morally justifiable for me to keep giving this “person” my money. This kind of behavior should be punished severely. This property was a new build and is now exactly three years old, and experienced people know what he wants to do next, right? Exactly—grace period over, it will be sold. Back to the topic.
Rents here for a nice, modern 80-90m² (860-970 sq ft) three-room apartment within a 30km (19 miles) radius are approximately 1000-1100€ (about $1080-$1200) excluding utilities. Three rooms because I need an office where I can work quietly.
When I calculate all costs for a single-family house, I can afford a monthly mortgage payment of 1100-1200€, and I estimate about 450€ (around $485) per month for additional housing costs, which naturally come with owning a house. This also already includes 150€ (about $160) per month set aside for repairs and renovations, saved into a separate account month by month. Insurance costs are also factored in. Altogether, this leaves 1637.50€ (about $1765) per month remaining for two people, without children. It sounds odd, but is this really that unrealistic? Compared to renting, buying would be cheaper—if the bank, or a bank (I’m comparing options), cooperates. We don’t even need to talk about the fact that in 30 years I wouldn’t have to continue paying rent, which will definitely be well over 1500€ with my pension by then. A home is a home. So that’s been my thought process so far, but that’s why I’m here—to get this train of thought, from experienced home builders, reordered. Thanks for every response so far, great forum =) Your calculation already shows that you won’t be able to finance the house. A resale property (30 km from Hamburg) will cost around 500,000€ (about $538,000). On top of that, you’ll need to finance more than 100% because you have no equity and also have to include the property transfer tax in the financing. If you find a bank willing to do this, the interest rate will be at least 2%. That alone means about 10,000€ (approximately $10,750) in interest in the first year (simple calculation). With a 1,100€ monthly mortgage payment, you will pay off only 3,200€ (around $3,435) of the principal in the first year. Now calculate how long it will take you to pay off the full mortgage...
Scotty698612 Jul 2021 20:27CC35BS38 schrieb:
But that is in Hamburg, right? I think you should rather look for condominiums in the commuter belt.That is already in the commuter belt, around the Bad Oldesloe area, Segeberg, etc. In Hamburg, condominiums start at around 500,000 and up, unless they are built around 1985.Scotty698612 Jul 2021 20:55Just found one in Norderstedt listed for €312,000 (about $334,000). You won’t find this much structural wreckage even in Fukushima or Chernobyl. Built in 1974, never refurbished or renovated, it’s complete ruin—needs a full gut renovation. Only the foundation walls and concrete ceilings remain intact, including an old open chimney shaft. The bathroom is completely decayed, and the kitchen is gutted and yellowed from smoke. Unless you can do absolutely EVERYTHING yourself and happen to have all the materials on hand, this place is ready for demolition.
Scotty698612 Jul 2021 21:23Good closing remark, you are right where you are right. =) It’s easy to get your head spinning.
Scotty6986 schrieb:
Just found one in Norderstedt listed for 312,000€. You haven’t seen this much total wreck even in Fukushima or Chernobyl. Built in 1974, never refurbished or renovated, everything is rubble; it would require a complete gut renovation. Except for the foundation walls and concrete ceilings. Includes an old open chimney shaft. The bathroom is completely rotten, the kitchen is torn apart and yellowed from smoke. So unless you can do absolutely EVERYTHING yourself and happen to have the materials on hand, this place is ready for demolition. Ysop*** schrieb:
the “rubble” … covers a solid 103 square meters (1,109 square feet) with a good floor plan. It is bright and inviting. And the best part: the middle class can afford it.