Hello dear professionals,
I have an idea that I can’t get out of my head. I want to buy a plot of land inexpensively and build a new house on it. So far, so good, but my main concern is something else. It is very important to me that everything is done as cheaply as possible since I can only invest about 25,000 euros (27,000 dollars) of my own capital. I have a job where there isn’t much room to earn more. That’s why I want to make the best out of it. I will simply take out the loan I am entitled to (around 200,000 euros (215,000 dollars)) and make the best of it!
My plan
Since my brothers and I are quite skilled in craftsmanship, we want to do as much of the work ourselves as possible.
Building plan
We are thinking of a rectangular plot of land, built on roughly half of it. The house should have simple square rooms, and we are considering two floors with a flat roof.
We prefer large rooms rather than many small ones.
The further plan
Once the house is finished, I want to sell it to increase my equity.
If the plan works out and I gain enough from it, I will have gathered experience and have architecture ready that I can use for a second project, maybe even a third, and eventually have enough equity to build a larger house for myself.
What do you think about this?
(Tips, ideas, how can I do this as cheaply as possible? Etc.)
Thank you in advance
I have an idea that I can’t get out of my head. I want to buy a plot of land inexpensively and build a new house on it. So far, so good, but my main concern is something else. It is very important to me that everything is done as cheaply as possible since I can only invest about 25,000 euros (27,000 dollars) of my own capital. I have a job where there isn’t much room to earn more. That’s why I want to make the best out of it. I will simply take out the loan I am entitled to (around 200,000 euros (215,000 dollars)) and make the best of it!
My plan
Since my brothers and I are quite skilled in craftsmanship, we want to do as much of the work ourselves as possible.
Building plan
We are thinking of a rectangular plot of land, built on roughly half of it. The house should have simple square rooms, and we are considering two floors with a flat roof.
We prefer large rooms rather than many small ones.
The further plan
Once the house is finished, I want to sell it to increase my equity.
If the plan works out and I gain enough from it, I will have gathered experience and have architecture ready that I can use for a second project, maybe even a third, and eventually have enough equity to build a larger house for myself.
What do you think about this?
(Tips, ideas, how can I do this as cheaply as possible? Etc.)
Thank you in advance
T
toxicmolotof28 Apr 2014 22:47Why are you entitled to a loan of approximately 200,000 euros?
And why would a bank support such a project?
What about the building permit / planning permission, structural calculations, construction management, energy saving regulations, and so on?
Forget it if your plan doesn’t include significantly more detail than what you described above.
PS: Troll alert?
And why would a bank support such a project?
What about the building permit / planning permission, structural calculations, construction management, energy saving regulations, and so on?
Forget it if your plan doesn’t include significantly more detail than what you described above.
PS: Troll alert?
If the troll alert is unfounded, please consider the following: any profits from the sale of a completed property are tax-free only after 2 years of personal use (!) (to the best of my knowledge, from memory). There are also groups or families who repeat this process every 2 to 3 years, meaning they buy land or an old property, renovate it, live in it themselves for 2 to 3 years (!), while simultaneously preparing the next one, then move and sell the "old" property again. Otherwise, if you have more than 5 (as far as I know) purchases or sales within 10 years, the tax office will classify you as a commercial property trader and tax you accordingly.
In my opinion, this only works with significantly more equity and, above all, market and technical knowledge. Your contribution shows considerable gaps in this regard. For you, it would therefore make sense to start with an apartment costing up to 75,000€ (approx. 75,000 Euros) to gain experience. If you fail with that, at least you won’t be completely ruined.
Best regards
Dirk Grafe
In my opinion, this only works with significantly more equity and, above all, market and technical knowledge. Your contribution shows considerable gaps in this regard. For you, it would therefore make sense to start with an apartment costing up to 75,000€ (approx. 75,000 Euros) to gain experience. If you fail with that, at least you won’t be completely ruined.
Best regards
Dirk Grafe
H
HilfeHilfe29 Apr 2014 20:58That’s good. 200k that I am entitled to.
Hmm, it’s nice that in Germany there is no obligation to grant a loan :p The bank has the right to evaluate you. If your income, equity, or project fits their profile, there is a big door for exit 😕
Hmm, it’s nice that in Germany there is no obligation to grant a loan :p The bank has the right to evaluate you. If your income, equity, or project fits their profile, there is a big door for exit 😕
Your idea has been done before: those are called builders.
Your house style already exists too: Bauhaus style.
Start by finding a plot of land according to your criteria – then proceed (with a few more years of experience) from there.
There are always people who spend their entire lives on their house-building project,
and there are always those who have turned pub talk ideas into business ventures 🙂
Edit: Capital gains tax applies within 10 years (to my knowledge, possibly outdated??!). So, you need to have used the property as your primary residence for 10 years to avoid paying this tax.
Your house style already exists too: Bauhaus style.
Start by finding a plot of land according to your criteria – then proceed (with a few more years of experience) from there.
There are always people who spend their entire lives on their house-building project,
and there are always those who have turned pub talk ideas into business ventures 🙂
Edit: Capital gains tax applies within 10 years (to my knowledge, possibly outdated??!). So, you need to have used the property as your primary residence for 10 years to avoid paying this tax.