ᐅ Prefabricated House or Traditional Solid Construction Companies – Budget
Created on: 13 May 2020 12:56
C
Cary2020
Hello everyone. As you can see, I am new here and looking for advice. We are 25 and 27 years old, both employed, and our monthly net income is 3100 € (approximately $3,400). We have no equity saved up (we are already aware of the risks). Now, by coincidence, we have found a plot of land. It’s the only one in the area that meets our expectations (small, no more than 500 m² (6000 sq ft)). It was more or less a “random find.” Although we had agreed that we wanted to build a house someday, we hadn’t expected it to happen so soon. We want to build at the edge of the Harz mountains, in Lower Saxony. That’s the basic info.
Over the past few days, we have spent a lot of time researching the topic but have not reached any concrete conclusions yet. We have had initial phone appointments with banks; even without equity, it’s not impossible, and some very reputable, well-known banks were involved. We have further appointments with first companies and additional banks planned for next week. However, I would also like to connect with “regular” homeowners to get realistic assessments because we probably belong to this group ourselves.
Does anyone have experience with building a house at our income level? Is it feasible not only on paper but also in reality?
Then the big question arises: do we want a traditional solid house (brick and mortar) or a prefab house? Twenty years ago, when my parents built their home, prefab houses had a bad reputation. Nowadays, that seems to have improved significantly. Basically, we are still undecided. We see major advantages with prefab houses in the absence of moisture problems, clearly the price (is that really the case?), and according to experience reports, there is less shoddy workmanship. I’m hoping to learn from your experiences here.
The last point, of course, will be contacting companies. I am a bit hesitant about regional developers and would prefer to get in touch with larger firms like Viebrockhaus (probably quite expensive), Massa Haus, Arge, etc. Here too, I hope to have an initial exchange with you.
As you can see, we are just starting out and would like to bring some orientation to our confusion of thoughts. Thanks in advance for your help.
Over the past few days, we have spent a lot of time researching the topic but have not reached any concrete conclusions yet. We have had initial phone appointments with banks; even without equity, it’s not impossible, and some very reputable, well-known banks were involved. We have further appointments with first companies and additional banks planned for next week. However, I would also like to connect with “regular” homeowners to get realistic assessments because we probably belong to this group ourselves.
Does anyone have experience with building a house at our income level? Is it feasible not only on paper but also in reality?
Then the big question arises: do we want a traditional solid house (brick and mortar) or a prefab house? Twenty years ago, when my parents built their home, prefab houses had a bad reputation. Nowadays, that seems to have improved significantly. Basically, we are still undecided. We see major advantages with prefab houses in the absence of moisture problems, clearly the price (is that really the case?), and according to experience reports, there is less shoddy workmanship. I’m hoping to learn from your experiences here.
The last point, of course, will be contacting companies. I am a bit hesitant about regional developers and would prefer to get in touch with larger firms like Viebrockhaus (probably quite expensive), Massa Haus, Arge, etc. Here too, I hope to have an initial exchange with you.
As you can see, we are just starting out and would like to bring some orientation to our confusion of thoughts. Thanks in advance for your help.
saralina87 schrieb:
bauen dürften, I would talk more about "being able to" rather than "being allowed to." Affordable housing is a basic right, but when it comes to building a detached single-family home you own, you really have to fight for it. You have to be able to afford it. As harsh as that sounds.
Tolentino schrieb:
Liest sich aber auch so, als könntet ihr nicht auf dein Gehalt verzichten...? For a certain period (1 to 1 1/2 years), yes. We can keep the debt service below €1000 (about $1100) and still be finished before retirement. The question is whether you want to manage living expenses including mortgage payments permanently on just one income, in this case, the wife’s salary. At the moment, I would rather say no for us.
A
Alessandro15 May 2020 08:06The biggest difference compared to the time when the parents built their homes, in my opinion, is the very different expectations of today’s homebuyers (there are certainly exceptions).
A throwaway and consumer culture is one of the biggest obstacles to financing.
Hardly anyone is willing to give up their two vacations a year, the latest smartphone, the newest clothes, and so on.
People are already looked at oddly if they drive a 10-year-old car and only own three pairs of shoes.
By the way, I agree here with @saralina87: If everyone in the past had been as pessimistic as many here in the forum, who say you need to save at least 1000 (currency) per month after deducting fixed expenses, the majority probably wouldn’t have been able to build before (and even today).
Edit: The 1000 figure is, of course, meant to be an exaggeration.
A throwaway and consumer culture is one of the biggest obstacles to financing.
Hardly anyone is willing to give up their two vacations a year, the latest smartphone, the newest clothes, and so on.
People are already looked at oddly if they drive a 10-year-old car and only own three pairs of shoes.
By the way, I agree here with @saralina87: If everyone in the past had been as pessimistic as many here in the forum, who say you need to save at least 1000 (currency) per month after deducting fixed expenses, the majority probably wouldn’t have been able to build before (and even today).
Edit: The 1000 figure is, of course, meant to be an exaggeration.
MayrCh schrieb:
I would not say "allowed" but rather "able to." Affordable housing is a fundamental right.No, there is no such specific fundamental right. There is only a general human right to housing, regardless of the type or cost.Alessandro schrieb:
In my opinion, the biggest difference compared to when parents built houses back then is the very different expectations of today’s homeowners (there are certainly exceptions).
The throwaway and consumer society is one of the biggest obstacles to financing.
Hardly anyone wants to give up their two vacations per year, the latest smartphone, the newest clothes, and so on.
People are sometimes even looked down on for driving a 10-year-old car and owning only three pairs of shoes.
By the way, I agree with @saralina87: If everyone in the past had been as pessimistic as many here in the forum—saying you have to save at least 1000 euros per month after fixed costs—then most people back then (and even now) probably wouldn’t have been able to build.
Edit: The 1000 euros is, of course, meant as an exaggeration. But what are we even talking about here? The parents built 20 years ago. Comparing prices from back then to today is complete nonsense to the highest degree, according to the original poster. And at least 1500 euros with monthly additional costs (NBK) is also a fact. So why would someone want to put themselves through this without any real knowledge (all of the original poster’s assumptions were wrong in the first post) with 3100 euros?! In my view, even without children, you’re missing around 600 euros net—and possibly more—to maintain the standard. There is no equity either.
Tassimat schrieb:
No, there is no such fundamental right. My statement was meant to be understood as a basic mindset, not as an alleged factual statement. Of course, there is currently no article in the Basic Law that explicitly states such a right, but with some goodwill, one can interpret quite a bit into Article 14, Section 2.S
saralina8715 May 2020 08:27MayrCh schrieb:
I would talk about "being able to" rather than "being allowed to." Affordable housing is a basic right, but when it comes to building a detached single-family home you definitely have to struggle for it. You have to be able to afford it. As harsh as that sounds.
Sometimes I feel like I’m writing in Chinese. Of course you have to be able to afford it – when was anything else claimed here? In my opinion, this "being able to" doesn’t only apply if you could theoretically cover your living expenses with one salary or if you have amount X left at the end of the month – it’s an individual matter. Of course, you must not lie to yourself and have to be honest with yourself – but I stand by this: If, after deducting the loan payment and additional costs, you still have 1,600 euros per month (about $1,730) left for living expenses and other fixed costs, then depending on consumption habits and personal priorities, that can be enough for a childless couple. That’s all I wanted to say. Would I build with this income? No, definitely not. But am I in the OP’s shoes? Do we know the fixed costs? Do we know the consumption habits, do we know how important building a house is to them? No. Instead, we get a blanket "it’s not possible" thrown in. That really gets on my nerves a bit.