Hello everyone,
My wife and I are currently considering whether we should look into buying property.
Family Situation
We are in our early to mid-30s, and my wife is four months pregnant. This will be our first child, but we plan to have another one in the future.
Financial Situation
We can expect a monthly income of about 4,500 € (approximately $4,800) over the next few years. However, there is no Christmas bonus or similar additional income.
We have about 60,000 € (about $64,000) in equity overall, but it is not entirely liquid, and we do not necessarily want to invest all of it in real estate.
Currently, around 12,000 € (about $13,000) is saved in a life insurance policy maturing in three years. 30,000 € (about $32,000) is invested in securities and funds, which we don’t want to fully liquidate. 13,000 € (about $14,000) is in a home savings contract, and 5,000 € (about $5,300) is in a savings account. In addition, we have some emergency funds set aside for car expenses, vacations, etc.
Current Living Situation
We rent an 80 m2 (860 sq ft) apartment in the Ruhr area, which is very affordable. We could imagine staying here for a transitional period with the baby (maybe up to one year). The only thing we really miss here is a garden. We do have a small balcony, but it only faces east.
Considerations Regarding Future Living Situation
Over the past few months, we have considered various options and then dismissed some. Ideally, we would like to build a nice single-family house. However, after doing some research here on the forum, I’ve come to the conclusion that for our dream house plus land, we would need to budget about 600,000 € to 700,000 € (around $640,000 to $750,000), which neither we can finance nor want to commit to.
After ruling out ownership of a single-family home for now, we started looking at apartments. If we were to move into a new apartment, we would definitely want enough space for two children. Depending on location, size, and features, the rent would likely be between 1,000 € and 1,500 € (about $1,070 to $1,600).
As a comparison, I calculated that with a rent of 1,500 € per month, we could alternatively finance about 300,000 € (around $320,000) over 20 to 25 years and then looked again at houses. However, in that price range, I couldn’t really find any suitable existing properties.
Deutsche Reihenhaus AG
While searching real estate portals, I came across projects by Deutsche Reihenhaus AG in Duisburg and Bottrop and found the concept very interesting.
With a base price of 220,000 € to 250,000 € (about $235,000 to $270,000), I submitted an inquiry. Adding options worth 30,000 € to 40,000 € (about $32,000 to $43,000), estimated 30,000 € to 40,000 € for interior work on walls and floors (materials and labor), plus around 30,000 € (about $32,000) in purchase-related costs, the total comes to approximately 320,000 € to 350,000 € (about $340,000 to $375,000) for a 140 m2 (1,500 sq ft) house.
The houses are quite basic in their standard equipment, and the project locations do not seem ideal. Features like underfloor heating, central ventilation, and smart home systems—things we would have in our dream house—are not available here. The wall structure also appears to make later modifications to wiring difficult. On the other hand, most reviews I found were positive, and the overall concept seems solid.
Our current idea is whether it might be worthwhile to invest in a townhouse instead of paying high rent. Depending on how we like it and how our finances evolve, we could still consider building our dream house in about 10 years and then rent out or sell the townhouse.
Disadvantages of Deutsche Reihenhaus AG From Our Perspective
• Ownership is divided according to condominium law (Wohnungseigentumsgesetz), so no independent decisions about the house are possible
• Small plot of land and very close to neighbors
• Risk of having difficult co-owners
• No underfloor heating, no central ventilation, no electric roller shutters
• Location of current projects is okay, but not ideal
• Only basic standard
• Limited influence on design
Advantages of Deutsche Reihenhaus AG From Our Perspective
• Affordable, making it possible for us to become homeowners
• No rent to pay for an apartment
• We liked the floor plan of the 145 m2 (about 1,560 sq ft) house
• Less risk and effort compared to building a house ourselves
• Better energy efficiency compared to older properties and rental apartments
• Very likely many other young families with children in the neighborhood
• Small private garden with low maintenance but enough space for grilling, sitting, and playing
• Much of the management runs through the homeowners’ association and administration, so less personal effort is required
In our opinion, the advantages clearly outweigh the disadvantages at this point, but we are still quite uncertain.
Questions
1. Are our assumptions and calculations correct, especially regarding interior finishing costs? Have I overlooked any costs?
2. Can you think of any other advantages or disadvantages?
3. Do you see a reasonable alternative to buy an equivalent house with at least 140 m2 (1,500 sq ft) for a maximum of 350,000 € (about $375,000) in the Ruhr area?
4. Do you have any experience with Deutsche Reihenhaus AG? Despite many projects, I have found surprisingly few reviews.
5. Do you know of any interesting alternative projects in the Ruhr area?
My wife and I are currently considering whether we should look into buying property.
Family Situation
We are in our early to mid-30s, and my wife is four months pregnant. This will be our first child, but we plan to have another one in the future.
Financial Situation
We can expect a monthly income of about 4,500 € (approximately $4,800) over the next few years. However, there is no Christmas bonus or similar additional income.
We have about 60,000 € (about $64,000) in equity overall, but it is not entirely liquid, and we do not necessarily want to invest all of it in real estate.
Currently, around 12,000 € (about $13,000) is saved in a life insurance policy maturing in three years. 30,000 € (about $32,000) is invested in securities and funds, which we don’t want to fully liquidate. 13,000 € (about $14,000) is in a home savings contract, and 5,000 € (about $5,300) is in a savings account. In addition, we have some emergency funds set aside for car expenses, vacations, etc.
Current Living Situation
We rent an 80 m2 (860 sq ft) apartment in the Ruhr area, which is very affordable. We could imagine staying here for a transitional period with the baby (maybe up to one year). The only thing we really miss here is a garden. We do have a small balcony, but it only faces east.
Considerations Regarding Future Living Situation
Over the past few months, we have considered various options and then dismissed some. Ideally, we would like to build a nice single-family house. However, after doing some research here on the forum, I’ve come to the conclusion that for our dream house plus land, we would need to budget about 600,000 € to 700,000 € (around $640,000 to $750,000), which neither we can finance nor want to commit to.
After ruling out ownership of a single-family home for now, we started looking at apartments. If we were to move into a new apartment, we would definitely want enough space for two children. Depending on location, size, and features, the rent would likely be between 1,000 € and 1,500 € (about $1,070 to $1,600).
As a comparison, I calculated that with a rent of 1,500 € per month, we could alternatively finance about 300,000 € (around $320,000) over 20 to 25 years and then looked again at houses. However, in that price range, I couldn’t really find any suitable existing properties.
Deutsche Reihenhaus AG
While searching real estate portals, I came across projects by Deutsche Reihenhaus AG in Duisburg and Bottrop and found the concept very interesting.
With a base price of 220,000 € to 250,000 € (about $235,000 to $270,000), I submitted an inquiry. Adding options worth 30,000 € to 40,000 € (about $32,000 to $43,000), estimated 30,000 € to 40,000 € for interior work on walls and floors (materials and labor), plus around 30,000 € (about $32,000) in purchase-related costs, the total comes to approximately 320,000 € to 350,000 € (about $340,000 to $375,000) for a 140 m2 (1,500 sq ft) house.
The houses are quite basic in their standard equipment, and the project locations do not seem ideal. Features like underfloor heating, central ventilation, and smart home systems—things we would have in our dream house—are not available here. The wall structure also appears to make later modifications to wiring difficult. On the other hand, most reviews I found were positive, and the overall concept seems solid.
Our current idea is whether it might be worthwhile to invest in a townhouse instead of paying high rent. Depending on how we like it and how our finances evolve, we could still consider building our dream house in about 10 years and then rent out or sell the townhouse.
Disadvantages of Deutsche Reihenhaus AG From Our Perspective
• Ownership is divided according to condominium law (Wohnungseigentumsgesetz), so no independent decisions about the house are possible
• Small plot of land and very close to neighbors
• Risk of having difficult co-owners
• No underfloor heating, no central ventilation, no electric roller shutters
• Location of current projects is okay, but not ideal
• Only basic standard
• Limited influence on design
Advantages of Deutsche Reihenhaus AG From Our Perspective
• Affordable, making it possible for us to become homeowners
• No rent to pay for an apartment
• We liked the floor plan of the 145 m2 (about 1,560 sq ft) house
• Less risk and effort compared to building a house ourselves
• Better energy efficiency compared to older properties and rental apartments
• Very likely many other young families with children in the neighborhood
• Small private garden with low maintenance but enough space for grilling, sitting, and playing
• Much of the management runs through the homeowners’ association and administration, so less personal effort is required
In our opinion, the advantages clearly outweigh the disadvantages at this point, but we are still quite uncertain.
Questions
1. Are our assumptions and calculations correct, especially regarding interior finishing costs? Have I overlooked any costs?
2. Can you think of any other advantages or disadvantages?
3. Do you see a reasonable alternative to buy an equivalent house with at least 140 m2 (1,500 sq ft) for a maximum of 350,000 € (about $375,000) in the Ruhr area?
4. Do you have any experience with Deutsche Reihenhaus AG? Despite many projects, I have found surprisingly few reviews.
5. Do you know of any interesting alternative projects in the Ruhr area?
The provider operates nationwide, to my knowledge offering a consistent standard within a model year generation, and has been on the market for several decades. This means it is possible to find out how the properties are valued on the market when ownership changes. As far as I know, they are considered to hold similar value compared to others, so they are not seen as rundown properties that no one would want to buy.
The product has been successful for decades, so obviously not just bought by naïve people, but it may not suit every type of homebuyer. Those living in them are mostly satisfied with their decision; those who decided against them usually criticize the construction style as being too "rigid": too uniform, conceptually reminiscent of large panel buildings or even prefabricated garages.
If I were thinking along these lines, I would probably just visit one of these communities and talk to the residents: on the website, you should be able to find several developments less than a two-hour drive away that have been occupied for several years (or even ones where ownership has already changed).
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
The product has been successful for decades, so obviously not just bought by naïve people, but it may not suit every type of homebuyer. Those living in them are mostly satisfied with their decision; those who decided against them usually criticize the construction style as being too "rigid": too uniform, conceptually reminiscent of large panel buildings or even prefabricated garages.
If I were thinking along these lines, I would probably just visit one of these communities and talk to the residents: on the website, you should be able to find several developments less than a two-hour drive away that have been occupied for several years (or even ones where ownership has already changed).
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
H
HbMathias30 Mar 2019 16:10Niloa schrieb:
We also live in a townhouse that is part of a condominium association. In your house, you can do whatever you want. However, when it comes to external changes (e.g., garden shed, air conditioning), you need to get approval at the owners’ meeting. There may also be rules in the declaration of division, such as guidelines for garden design in our case. Additionally, we contribute to a maintenance reserve fund. The advantage is that if something needs repair on the facade or windows, the association covers the cost, not just you alone.That sounds very interesting. Perhaps you could share some of your experience. How long have you been living there? Where and with which builder was it constructed? Are you satisfied, and why are you now looking for something new? How much do you pay into the maintenance reserve fund?
H
HbMathias30 Mar 2019 16:1611ant schrieb:
The provider operates nationwide, with, as far as I know, a consistent standard within a model year generation and no local variations, and has been on the market for several decades. This means you can find out how the properties are valued on the market when ownership changes. As far as I know, they are considered to hold similar value to other homes and are not seen as dilapidated buildings that no one would want to buy.
The product has been successful for decades, so clearly it’s not only purchased by uninformed buyers, but it does not suit every type of homebuyer. Those who live in them are mostly satisfied with their decision; those who have decided against them often criticize the construction style as too “rigid”: too uniform, with a design concept that strongly resembles prefabricated apartment blocks or even garage units.
If I were considering this, I would simply visit one of these developments and talk to the residents: on the website, you should find several developments less than two hours’ drive away that have been occupied for several years (or even ones where ownership has already changed).That’s what I thought as well — if they build the same houses hundreds of times across the whole country, neither they nor the buyers are likely to have had very bad experiences with them. Over the next few weeks, we plan to visit the show home in Cologne and, if we like it, check out the projects under construction as well as completed neighborhoods.
turnkey (without tiling, without flooring work, without painting/wallpapering)
The optional feature "upgrade to KfW55 house" is listed by us and charged at €2,990.00.
In addition to the house, a parking space or a garage must be purchased. Both options are also possible.
Parking space: €9,990.00
Garage: €18,990.00
optional second bathroom/children’s bathroom in the attic possible
- separate guest toilet possible
optimal ventilation concept through humidity-controlled residential ventilation Comfort Plus
I see residential ventilation mentioned, but no underfloor heating. Is KfW55 even possible with radiators?
Painting and flooring I estimate at around €15,000 if you have it done.
Plus parking space, plus hedges and lawn...
I actually like these standardized terraced houses... I also like panel buildings, you just have to look at it positively and not compare it to elite housing.
The terraced house is not a detached single-family home and doesn’t have to be. Every building type has its target group.
It would be wrong to buy this house and dream of a detached house. Then you won’t be happy. Also, trying to realize custom requests in every room makes the house expensive, but you probably won’t get that money back when reselling.
Smart home? Not needed in such a house. Take three steps and you have a switch in your hand. Heating doesn’t need to be highly adjustable. Dusk switches and motion detectors for outdoor lighting are enough.
Note: owning a home means higher ancillary costs than renting.
For me, such a house would be a starter property: happy with close neighbors as long as you and your child are at that “communicative” age, later possibly getting a bit more privacy with a new purchase.
If you are already a loner and have problems with others, then forget it. Because it will be similar to a campground: close neighbors, you celebrate together during parties, and when there are conflicts, you look the other way.
The optional feature "upgrade to KfW55 house" is listed by us and charged at €2,990.00.
In addition to the house, a parking space or a garage must be purchased. Both options are also possible.
Parking space: €9,990.00
Garage: €18,990.00
optional second bathroom/children’s bathroom in the attic possible
- separate guest toilet possible
optimal ventilation concept through humidity-controlled residential ventilation Comfort Plus
I see residential ventilation mentioned, but no underfloor heating. Is KfW55 even possible with radiators?
Painting and flooring I estimate at around €15,000 if you have it done.
Plus parking space, plus hedges and lawn...
I actually like these standardized terraced houses... I also like panel buildings, you just have to look at it positively and not compare it to elite housing.
The terraced house is not a detached single-family home and doesn’t have to be. Every building type has its target group.
It would be wrong to buy this house and dream of a detached house. Then you won’t be happy. Also, trying to realize custom requests in every room makes the house expensive, but you probably won’t get that money back when reselling.
Smart home? Not needed in such a house. Take three steps and you have a switch in your hand. Heating doesn’t need to be highly adjustable. Dusk switches and motion detectors for outdoor lighting are enough.
Note: owning a home means higher ancillary costs than renting.
For me, such a house would be a starter property: happy with close neighbors as long as you and your child are at that “communicative” age, later possibly getting a bit more privacy with a new purchase.
If you are already a loner and have problems with others, then forget it. Because it will be similar to a campground: close neighbors, you celebrate together during parties, and when there are conflicts, you look the other way.
Committing to a townhouse when you actually dream of a detached house is, in my opinion, a mistake. I also see too many unnecessary extras that make a house expensive. If the desire for a home of your own is at the top of your wish list, I would recommend saving steadily for another two years to have around 100,000 in equity. Beyond that, build the house simply and cost-effectively by eliminating all unnecessary features. Many things can be planned as optional for later and possibly added afterward (such as installing empty conduit pipes and similar provisions).
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