Hello everyone,
I’ve already read some interesting threads here and now I’d like to ask a question myself:
About me: I’m 28 years old and married—no children yet, but we do want some in the future. My husband and I have been searching for properties, plots of land, etc., for about 2.5 months. We are quite open to options like condominiums, building a new home on a lot, or an existing property.
We are both industrial engineers and currently earn a combined gross annual income of 120,000 EUR. Our current savings amount to 120,000 EUR. We only finished our master’s degrees 3 and 4 years ago. Right now, we live in 60 sq m (645 sq ft) for 1,000 EUR (about 1,000 USD) all-inclusive rent. It’s hardly possible to find cheaper here without significantly increasing the commute to work. Currently, we can bike to work.
At the moment, we are looking at a 1,200 sq m (12,917 sq ft) plot with a new build. The prefabricated house provider would be Bien-Zenker. Our meeting with them left a solid impression compared to two other manufacturers.
We have received an offer that includes almost everything: a 165 sq m (1,776 sq ft) house without a basement, a double garage, the land, and utility connections for just under 670,000 EUR. Something like the kitchen is, of course, not included. So we’re assuming about 700,000 EUR in total.
I am extremely uncertain whether we should proceed with this. Also, whether the financing will work out. Our main bank said it should be possible... but they would prefer us to have a guarantor. My in-laws would support us with about 30,000 EUR, but my parents wouldn’t help financially. My uncle could assist with a low-interest loan. Since all this came up so quickly, we still need to schedule more appointments to clarify the financing. Our decision deadline is about four weeks.
I wanted to ask if there are people here who have been in a similar situation or could offer an assessment.
Thank you very much!
I’ve already read some interesting threads here and now I’d like to ask a question myself:
About me: I’m 28 years old and married—no children yet, but we do want some in the future. My husband and I have been searching for properties, plots of land, etc., for about 2.5 months. We are quite open to options like condominiums, building a new home on a lot, or an existing property.
We are both industrial engineers and currently earn a combined gross annual income of 120,000 EUR. Our current savings amount to 120,000 EUR. We only finished our master’s degrees 3 and 4 years ago. Right now, we live in 60 sq m (645 sq ft) for 1,000 EUR (about 1,000 USD) all-inclusive rent. It’s hardly possible to find cheaper here without significantly increasing the commute to work. Currently, we can bike to work.
At the moment, we are looking at a 1,200 sq m (12,917 sq ft) plot with a new build. The prefabricated house provider would be Bien-Zenker. Our meeting with them left a solid impression compared to two other manufacturers.
We have received an offer that includes almost everything: a 165 sq m (1,776 sq ft) house without a basement, a double garage, the land, and utility connections for just under 670,000 EUR. Something like the kitchen is, of course, not included. So we’re assuming about 700,000 EUR in total.
I am extremely uncertain whether we should proceed with this. Also, whether the financing will work out. Our main bank said it should be possible... but they would prefer us to have a guarantor. My in-laws would support us with about 30,000 EUR, but my parents wouldn’t help financially. My uncle could assist with a low-interest loan. Since all this came up so quickly, we still need to schedule more appointments to clarify the financing. Our decision deadline is about four weeks.
I wanted to ask if there are people here who have been in a similar situation or could offer an assessment.
Thank you very much!
M
motorradsilke27 Dec 2024 23:16Yaso2.0 schrieb:
I have often read from the dear @11ant that you don’t have to start out right away with a property that meets all possible life stages until the end. We started with an apartment, then a mid-terrace house, followed by a semi-detached house, and for the last 2.5 years we have been living in our detached house. And all this took place between 2008 and 2022.
And hopefully, this current house is not our final stop either.
I would think carefully about this attitude.
Every house purchase costs money, a lot of money: property transfer tax, notary fees, land registry, possibly a real estate agent, moving costs.
And for some people, a house means more than just a shell. You have invested money, you have invested time. You have designed the house to your liking. You have arranged the plot and garden the way you want. You have built friendships in the neighborhood. Do you really want to leave all that behind and start over again? Of course, some people don’t mind. But not everyone is like that. It is something you should seriously reflect on yourself.
N
nordanney27 Dec 2024 23:42motorradsilke schrieb:
I would think carefully about this decision.
Every home purchase costs money, a lot of money: property transfer tax, notary fees, land registry, possibly a real estate agent, moving costs… It’s like buying a car.
motorradsilke schrieb:
Do you really want to put all that aside and start over again? Yes. A house or a condominium is also „just“ a functional asset and should adapt to life. It’s a good idea to start with a small (and affordable) property, then move to something suitable as the family grows, and then again when the children have left home. Emotions are important, but some rationality should always be kept in mind. (Says someone living in their fifth property, which definitely won’t be the last)
M
motorradsilke28 Dec 2024 06:31nordanney schrieb:
It’s like buying a car.No, when you buy a car you don’t have nearly as many additional costs. With a property, every time you pay additional expenses roughly equivalent to the price of a car, and then that money is gone.
Yes. A house or a condominium is also “just” a functional item and should adapt to your life. It’s often best to start with a small (and affordable) property, then move to something suitable for your family, and then once again after the children have left. Emotions are important, but you should always keep some rationality. (Says someone who lives in their fifth property, which definitely won’t be the last)By now, though, you probably have spent a six-figure sum on additional costs. Not everyone can or wants to do that. And for many, a house is more than just a functional item. If you have been involved in building or renovating it yourself, there is often a lot of passion invested.
M
MachsSelbst28 Dec 2024 08:03This is a typical "in the bubble" statement from someone who has more than enough money to change properties and has consistently bought and sold at the right time.
Some average earners might manage this as well, but planning on it is pure madness.
For many, the goal is to eventually pass the property on to their children, not to reduce their own bank account to zero by the time they die.
Some average earners might manage this as well, but planning on it is pure madness.
For many, the goal is to eventually pass the property on to their children, not to reduce their own bank account to zero by the time they die.
N
nordanney28 Dec 2024 09:53motorradsilke schrieb:
But then you’ve already spent a six-figure amount on additional costs. Not everyone can afford or wants to do that. So? After three new cars, you might have wasted the same amount.
motorradsilke schrieb:
If you’ve been involved in building or renovating yourself, you probably put a lot of heart into it. Oh yes. A lot of sweat and passion. And always looking forward to the next property.
Condo for me
Semi-detached house for my partner and me (still enough space for our first two children)
Detached single-family home for the five of us
Condo for me after separation
Two-family house where we all fit again
Just the normal course of life
MachsSelbst schrieb:
That’s a classic “in the bubble” comment from someone with more than enough money to move properties and always bought and sold at the right time. Nope.
MachsSelbst schrieb:
Some average earners might succeed in that, but planning on it... pure madness... Planning? No, just having the idea of living in the right property. As a confirmed single, I probably would never have moved out of my first condo.
With only two children, the semi-detached house would have been enough. But if you need or want three children’s rooms plus a home office, you have to change.
MachsSelbst schrieb:
And for many, the goal is to leave the property to their children. Not a desirable goal. Usually not even for the children. My goal is to live well until death. If I can then pass something on, that’s great. If the money is gone, the children will have to work themselves. By then, they’re often between 40 and 50, already have their own home or don’t want some old place.
But sure, everyone has to decide for themselves what they want. Clinging to emotions alone is not smart. It’s perfectly okay to approach property ownership rationally.
N
nordanney28 Dec 2024 10:03P.S. If you don’t have an exceptional property or are building in a remote area, additional costs are generally balanced out by modest increases in property value.