Build/buy a house, what do you think?

Hello,

first of all, I would like to introduce myself. My name is Thorsten, I come from Coburg and I am 35 years old.
At the moment I live alone in a rented apartment and now want to afford something of my own on my own in terms of housing. So without a girlfriend or child.
I have equity of about 80,000 euros + 20,000 euros in a 100,000 [Bausparer] (financing [Bausparer] with favorable loan option) + about 5,000 in an options [Bausparer].
In addition, I have been employed for 10 years and earn 2,600 euros net per month with 14.1 monthly salaries at a large insurance company, guess which one;-).
At the moment I pay a total of 420 euros per month for rent. Besides that, I save about 800 euros in [Bausparer] and daily allowance.
I consider my job quite secure. In the near future I will probably be promoted, but I want to leave that aside for now because it is only a verbal promise.
My idea now was to take out a corresponding loan and after 10-15 years fixed interest period to redeem it with the 100,000 [Bausparer]. With additional allocation I could get 125,000 euros out of it.
Now I have been a silent reader in this forum for some time and just wanted to ask for your opinion. I don’t want [ETW]. The house doesn’t need to be too big. 110 to 120m² would be completely sufficient without a basement, on a plot of about 400-500m². Plots here cost about 80 euros/m², whereby then first developed. Then there are costs for the inspection shaft of about 3,000 euros, property transfer tax and notary/court fees.
Are my financial possibilities sufficient for a new house or should I rather buy something existing for about 230-240k?
I read from the user [Bauexperte] something about 300,000 euros in this range for a simple 120m², do you see it that way for me too? Do you need more information? Looking forward to your feedback!

Best regards and thanks in advance.
Thorsten

Hello Thorsten,

I have about 80,000 euros in equity ... The house does not need to be very large. 110 to 120m² would be completely sufficient without a basement, on a plot of about 400-500m². Plots here cost about 80 euros/m², whereby they are then first-developed. In addition, there are costs for a revision shaft of about 3000 euros, property transfer tax, and notary/court fees.
Are my financial means sufficient for a new house or should I rather buy something existing for about 230-240k?
From the user Bauexperte I read something about 300,000 euros in this range for a simple 120m², do you see it the same way for me? Do you need more info? Looking forward to your feedback!

I do not answer financing questions because I am convinced that this sensitive topic must be discussed personally with a financing broker you trust. Every financing situation is unique, so experiences from local users can only be applied to a limited extent.

Regarding your building wishes, the financial framework based on your information so far would look as follows.

Single-family house 120 sqm as a KfW 70 efficiency house on a slab foundation: EUR 192,000
Plot 400 sqm: EUR 32,000
Incidentals: EUR 35,000-40,000
Painting work: EUR 10,000
Floor coverings: EUR 10,000
Outdoor facilities: EUR 10,000
Reserve for extras: EUR 10,000

Estimated total investment: EUR 304,000

Your estimate is therefore quite good so far; depending on the region where you want to build, it can also easily be about 3% more expensive.

Rhine greetings

Hello construction expert,

Thanks already for the breakdown!! Yes, the financing part is understandable. There is also too little input and, as you say, not generally applicable. But can you roughly say whether this is unrealistic given my financial situation, or if I can even think about building? Provided, of course, that the situation regarding single status, work, etc., remains as described...?

Best regards and thanks
Thorsten

Hi, since we are currently having the same considerations, I can only advise you to have everything calculated by a financial advisor or bank. With new construction, you might still be able to tap into completely different funding sources, which can then make an installment partially cheaper than with the (seemingly cheaper) "used purchase".

Best regards

Hello you, thanks for your feedback! Yes, I will make an appointment in the next few days. At the same time, I am also looking at existing properties, but as you say, it is always questionable what is ultimately better...,
Best regards

Hello Thorsten,

Can you roughly say whether this is utopian given my financial circumstances, or if I can even consider building at all? Assuming, of course, that the situation regarding being single, work, etc., remains as described...?

From my gut feeling, I assume that you will be able to manage the financing. However, it would not be the first time that a banker comes to a different conclusion, since you have to provide him with more details than are appropriate in a public forum.

Find an independent financing broker and you will reliably know what to expect ;)

Rhenish greetings