T
Traumhaus201410 Oct 2011 01:05Hello everyone!
Our username says it all. My wife and I want to fulfill our dream of owning a home, probably in 2014.
Now we are facing the following challenge:
Today we fell in love! With the "Landstadt - Gatow" area in Berlin Spandau! From our point of view, it’s simply the ideal place to live. Quick access to central Berlin, close to Potsdam, near the water, a newly developed area with two very nice schools, and just idyllic :-) For us, it’s clear; we want to live there.
The good news is that you can buy a lot directly from the federal government (the property is federally owned; the area was used by the British armed forces until 1990). We have the necessary funds if we sell an inherited property (which is located far from Berlin). The prices for plots are around 100,000 euros (about $110,000), which is roughly what we could get for our inherited lot. We even have a potential buyer lined up.
So far, so good.
Now comes the BUT, and why we want/can only build in 2014.
Our current professional situation is that we both finished our studies this year and are currently trainee teachers. This means our monthly net income is about 2,000 euros (about $2,200). From our point of view, that’s not enough yet to take out a loan. We plan to borrow around 120,000 euros (about $130,000).
I don’t think any bank would lend to us now since we are still trainees.
That’s why we want to start building only in 2014.
Our question is: Is it generally worthwhile to buy a lot now and then take out a loan in 2-3 years, or would you wait and only start once you have a permanent job?
The question also relates to how long such a transaction takes with all the formalities involved, like the notary, etc.
Would a bank fully count a mortgage-free property as equity? Or should we rather buy everything from one source, for example, from a prefabricated house company?
And lastly: Do you think 120,000 euros (about $130,000) is realistic for a house (around 4-5 rooms, modestly built)?
What are the advantages/disadvantages (other than securing the dream lot) if we were to buy the lot next year, for example?
Thanks in advance for your answers!
Our username says it all. My wife and I want to fulfill our dream of owning a home, probably in 2014.
Now we are facing the following challenge:
Today we fell in love! With the "Landstadt - Gatow" area in Berlin Spandau! From our point of view, it’s simply the ideal place to live. Quick access to central Berlin, close to Potsdam, near the water, a newly developed area with two very nice schools, and just idyllic :-) For us, it’s clear; we want to live there.
The good news is that you can buy a lot directly from the federal government (the property is federally owned; the area was used by the British armed forces until 1990). We have the necessary funds if we sell an inherited property (which is located far from Berlin). The prices for plots are around 100,000 euros (about $110,000), which is roughly what we could get for our inherited lot. We even have a potential buyer lined up.
So far, so good.
Now comes the BUT, and why we want/can only build in 2014.
Our current professional situation is that we both finished our studies this year and are currently trainee teachers. This means our monthly net income is about 2,000 euros (about $2,200). From our point of view, that’s not enough yet to take out a loan. We plan to borrow around 120,000 euros (about $130,000).
I don’t think any bank would lend to us now since we are still trainees.
That’s why we want to start building only in 2014.
Our question is: Is it generally worthwhile to buy a lot now and then take out a loan in 2-3 years, or would you wait and only start once you have a permanent job?
The question also relates to how long such a transaction takes with all the formalities involved, like the notary, etc.
Would a bank fully count a mortgage-free property as equity? Or should we rather buy everything from one source, for example, from a prefabricated house company?
And lastly: Do you think 120,000 euros (about $130,000) is realistic for a house (around 4-5 rooms, modestly built)?
What are the advantages/disadvantages (other than securing the dream lot) if we were to buy the lot next year, for example?
Thanks in advance for your answers!
Regarding your financial capacity, you are currently limited. I assume that a reputable lender would advise against financing, or that you would be offered interest rates with a high risk premium on a first mortgage secured by the inherited property.
I recommend the safer approach: first sell the inherited plot and use the proceeds to purchase the ideal plot.
When purchasing a new build, you should reconsider your price expectations. It is definitely not possible to build a house with 4–5 rooms and at least 130 m² (1400 sq ft) of living space without significant personal contribution for 120,000 euros. Approach some providers and request quotes in that range.
Best regards,
T.H.
I recommend the safer approach: first sell the inherited plot and use the proceeds to purchase the ideal plot.
When purchasing a new build, you should reconsider your price expectations. It is definitely not possible to build a house with 4–5 rooms and at least 130 m² (1400 sq ft) of living space without significant personal contribution for 120,000 euros. Approach some providers and request quotes in that range.
Best regards,
T.H.
Hausplaner schrieb:
Is it generally possible to buy a plot of land now and only build on it in 2 years?Yes, there is usually nothing preventing this. Of course, there are always some unusual individual cases. In our contract, it was stipulated that construction must begin within 2 years of purchase. This is a common requirement in new development areas.
Hausplaner schrieb:
Besides property tax, are there any ongoing costs?I can’t think of any other ongoing costs. However, there are special cases based on the contract or local neighborhood or municipal regulations. For example, maintenance of the building site can be required by the purchase agreement.
Best regards
T.H.
One more point I would like to mention: it can be useful to submit a preliminary building enquiry before purchasing. If there are any obstacles to construction, the building authority would indicate them through this process.
It also makes sense to apply for a legally binding building permit / planning permission once the design is finalized. In some cases, the building permit process can take a long time, so submitting an early application allows you to gain time.
Best regards
T.H.
It also makes sense to apply for a legally binding building permit / planning permission once the design is finalized. In some cases, the building permit process can take a long time, so submitting an early application allows you to gain time.
Best regards
T.H.
T
Traumhaus201411 Oct 2011 13:15Thank you for the replies!
We’re aware that we’re not building just yet. But a residency like this will end at some point, and then, hopefully, the financial situation changes almost overnight.
But, you see, building permit / planning permission! I hadn’t even thought of that. That process can definitely take a while. And in two years, we’ll already be employed, so by then we could start looking into selling our current property and buying the new plot of land.
A quick question: How long did it take on average for you to move into your house? I mean, from the moment you decided on a plot of land or house until the moving truck actually arrived?
Because right now we only have a tiny apartment, and we want to "expand" soon, hehe....
Best regards!
We’re aware that we’re not building just yet. But a residency like this will end at some point, and then, hopefully, the financial situation changes almost overnight.
But, you see, building permit / planning permission! I hadn’t even thought of that. That process can definitely take a while. And in two years, we’ll already be employed, so by then we could start looking into selling our current property and buying the new plot of land.
A quick question: How long did it take on average for you to move into your house? I mean, from the moment you decided on a plot of land or house until the moving truck actually arrived?
Because right now we only have a tiny apartment, and we want to "expand" soon, hehe....
Best regards!