Hello dear forum users,
I am new here and have spent the last few days reading a lot in the forum. It’s great that so many of you share your experiences and also bring all the negative aspects of building to light. This has helped me to take off my rose-colored glasses a bit and to think more realistically about the idea of building.
A brief overview of our situation: we are a household of three.
Our dream is to have our own home. Due to the current interest rates, we would like to carry out our plan and build now.
Here are the key details:
I hope that even when I share these, some of you will continue reading and give us a bit of encouragement that we can realize our dream. We have found a plot of land for 55,000€ (about 55,000 euros). Our total budget is 250,000€ (about 250,000 euros).
That leaves 195,000€ (about 195,000 euros) for the house.
With that, we want to cover everything. By everything, I mean a turnkey house including additional building costs, etc.
The only extras would be flooring and wallpaper. Everything else should be included within that.
Our plan is for about 135 sqm (1450 sq ft) with 5 rooms.
We haven’t arranged financing yet, as this forum marks the first steps in that direction. We don’t have any equity. According to our credit rating, I would say we are well positioned. I think we can afford a monthly payment of 900€ (about 900 euros) if we also budget 250€ (about 250 euros) for operating costs. This assumes 1% repayment rate. We plan to increase that to 2% after 5 years.
1.) My first question to you is: Is our budget too tight for building? Can we actually afford to build? Or should we rather look for an older used house?
2.) Is financing completely without equity even possible? Will the bank agree to that? Are additional costs such as extra building-related fees and the building materials financed as well?
Thank you very much for all your answers! I’m really curious and hope our dream won’t completely fall apart. Thank you!!!
I am new here and have spent the last few days reading a lot in the forum. It’s great that so many of you share your experiences and also bring all the negative aspects of building to light. This has helped me to take off my rose-colored glasses a bit and to think more realistically about the idea of building.
A brief overview of our situation: we are a household of three.
Our dream is to have our own home. Due to the current interest rates, we would like to carry out our plan and build now.
Here are the key details:
I hope that even when I share these, some of you will continue reading and give us a bit of encouragement that we can realize our dream. We have found a plot of land for 55,000€ (about 55,000 euros). Our total budget is 250,000€ (about 250,000 euros).
That leaves 195,000€ (about 195,000 euros) for the house.
With that, we want to cover everything. By everything, I mean a turnkey house including additional building costs, etc.
The only extras would be flooring and wallpaper. Everything else should be included within that.
Our plan is for about 135 sqm (1450 sq ft) with 5 rooms.
We haven’t arranged financing yet, as this forum marks the first steps in that direction. We don’t have any equity. According to our credit rating, I would say we are well positioned. I think we can afford a monthly payment of 900€ (about 900 euros) if we also budget 250€ (about 250 euros) for operating costs. This assumes 1% repayment rate. We plan to increase that to 2% after 5 years.
1.) My first question to you is: Is our budget too tight for building? Can we actually afford to build? Or should we rather look for an older used house?
2.) Is financing completely without equity even possible? Will the bank agree to that? Are additional costs such as extra building-related fees and the building materials financed as well?
Thank you very much for all your answers! I’m really curious and hope our dream won’t completely fall apart. Thank you!!!
I agree with the general opinion. Without any personal equity under these conditions, I would not take the risk, assuming a loan would even be granted. The repayment period would likely exceed 30 years, and I have yet to see a loan with interest fixed for that long. Especially with low-interest loans, the rate is often fixed for only 10 or 15 years and then becomes variable.