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.
RotorMotor schrieb:
6k net as a teacher, how is that possible?By both, I naturally meant combined
First of all, thanks for all your responses. The reason I appeared online might have been due to my browser. I’ve only just found the time to reply now.
I see that my financial situation meets with significant resistance. But I expected that. I’m taking your comments into account, but I’m not discouraged yet. I will first keep my scheduled appointments with developers and banks.
I’m familiar with the other side. My parents also built quite “tightly,” but with even worse financial conditions, since there were two children. A 2800€ (about $3000) income, only the land they owned, 2 children, and around 230,000€ (about $250,000) in loans. We never went hungry, and the car was always roadworthy (we have handled everything ourselves for years, even major repairs like engine replacement, transmission, clutch, etc.). All the family’s cars haven’t seen a workshop in years. Outdoor landscaping, garage, carport – all done ourselves, step by step, so there was no financial buffer either. Repairs to the heating system, roof repairs – also all DIY. So we definitely know what we’re talking about.
But well, such largely self-sufficient builders are rare nowadays, which is probably why there is strong opposition. By the way, my parents have never declared bankruptcy. Still, thanks for your opinions and different perspectives. That’s why I came here—to exchange ideas.
I see that my financial situation meets with significant resistance. But I expected that. I’m taking your comments into account, but I’m not discouraged yet. I will first keep my scheduled appointments with developers and banks.
I’m familiar with the other side. My parents also built quite “tightly,” but with even worse financial conditions, since there were two children. A 2800€ (about $3000) income, only the land they owned, 2 children, and around 230,000€ (about $250,000) in loans. We never went hungry, and the car was always roadworthy (we have handled everything ourselves for years, even major repairs like engine replacement, transmission, clutch, etc.). All the family’s cars haven’t seen a workshop in years. Outdoor landscaping, garage, carport – all done ourselves, step by step, so there was no financial buffer either. Repairs to the heating system, roof repairs – also all DIY. So we definitely know what we’re talking about.
But well, such largely self-sufficient builders are rare nowadays, which is probably why there is strong opposition. By the way, my parents have never declared bankruptcy. Still, thanks for your opinions and different perspectives. That’s why I came here—to exchange ideas.
Let’s compare:
82 times monthly net income. Including land and with children.
97 times monthly net income for a €300,000 loan. Without land and without children.
What will your income be with children?
Cary2020 schrieb:
My parents also built on a tight budget.
€2,800 income, they only owned the land, 2 children, and about a €230,000 loan
82 times monthly net income. Including land and with children.
Cary2020 schrieb:
Net income is €3,100
97 times monthly net income for a €300,000 loan. Without land and without children.
What will your income be with children?
According to initial information, the bank can offer us this amount. However, we definitely do not want to use the full amount. So we are talking about a loan sum of x. It could be around €230,000 (approximately $250,000), but it could be lower or higher. We are still at the very beginning. And children are NOT a topic. Not today, not in 5 years, and not in 10 years.