Build, buy or rent??

Hello dear forum community,
after we have almost sold our property, we are thinking about how things could continue for us. We sold our current house because it is too big for us and we no longer want to rent it out. We want a place for us where there is room for 5 people.
The question arises whether we should build a new house again, or rather buy an existing property, or rent instead. Looking to the future, we would probably be better off with a rental apartment, if we can find one where a dog is also allowed. Rent would be just as expensive or more than possibly a loan. But who doesn't dream of their own little house...

To prevent the purchase from going wrong at some point and ending up with a pile of debts that one might not be able to pay, everything must be well thought out.
When we have sold, we will have about 30-50 thousand euros in equity.
My husband earns about 2100 euros, I only work marginally and earn on average about 300 euros. In addition, we still have child benefit, which we will no longer have in a few years because the children will then go their own way. In return, I would also like to work full-time again when the last child is independent enough.
With child benefit, we currently have an income of 3300 euros. So far, so good.

So let's summarize: income = 3300 now, in 3-6 years child benefit will be gone, then only 2300 and possibly more through my earnings if I work full-time.
Equity = 30-50 thousand.
We are 46 and 49 years old.

What do you think, is something possible here? An acquaintance said that everything stands and falls with proper financing that also includes subsidies. And if yes, is a shell construction house with everything included ultimately cheaper than a turnkey?
Thanks in advance.

Hello,

What do you think, is it possible to present something here?? An acquaintance said that everything stands and falls with the right financing in which funding is also planned.

A "right" financing can also be the right way without funding; it decisively depends on personal circumstances. However, your acquaintance is right in that an "independent" financing broker is indispensable. The answers you will certainly receive here in the forum regarding financing can therefore only give approximate values and by no means replace a personal conversation with an expert.

And if yes, is a shell house with everything included in the end cheaper than a turnkey one?

Honest answer? No.

A shell house is usually a closed shell construction and the interior work is then the responsibility of the builder to do themselves. So you need a) craftsmanship skills, b) a lot of time, and c) still have to hire masters for electrical and sanitary installations, since only a master can connect and approve these two trades.

Regarding costs, practice repeatedly shows that in the end, costs are not really saved because instead of contracting to tradespeople, there is a higher material use for the self-performed work. Example: the pure sanitary equipment (bathtub, shower, toilet, and washbasin) then costs not 3,000 EUR but 4,000 EUR and more; this almost continues in all interior trades.

You will certainly contract part of the interior work completely to tradespeople; here it is important to create (buy) a reasonable execution plan and then request and check offers from the tradespeople. You can avoid this by commissioning an architect with the awarding of contracts and construction supervision; that also costs something.

In sum, it rather depends in my opinion not only on finding the right building financing broker for you but also the building contractor who suits you.

Best regards

Hmm...thanks anyway. Yes, you are right. Could you build a house with the income? From reading here I know that a new one will cost about 300,000 Euronen, if that is enough.
best regards

Hello,

Hm... thanks anyway. Yes, you’re right. Could one build a house with that income? From reading here, I know that a new one will cost about 300,000 euros, if that’s enough.

It might be possible; take your time and get independent advice.

So that you have a basis for the expected costs, a cost breakdown based on the attached plan with 130 living square meters.

House, Kfw 70, on slab foundation, incl. air-water heat pump, controlled ventilation, masonry garage and some additional features 200,000 EUR
Incidental construction costs 35,000 EUR
-----------
235,000 EUR
The house includes 3 children’s rooms.

You should plan these costs for the house plus a reserve for extras. In addition, the costs for the land will come on top. Add these three positions and arrange an appointment with a financing broker you trust. He can already tell you something about your max financing budget in the first meeting and also how high the monthly burden will be. When it gets concrete, he naturally has to get the bank’s approval; for you this first meeting is a comfortable entry into the colourful world of financing. You know what you can max finance and can decide with your family how much of it you want to use. A tip: don’t make it too tight – things can break and you should have reserves for that.

The answers you can expect here from users are all not transferable, since a serious financer has to look at the individual personal situation.

Kind regards

Hello construction expert, thank you very much for your response. We also think it will be best to consult an independent financial advisor. Your example house is not bad at all, we also wanted something small but nice, and that everyone has their own little room. In a few years, the kids will go their own ways anyway. Yes, the world of financing is quite complicated, at least that's what I think. We will certainly play it safe if we decide to build a house. But the exchange with other users is also interesting.
best regards

So, by now we know a bit more. We want to build new. We have already found a financial broker who will craft a good financing plan for us that we can afford and which also includes repayment. We have not found any existing properties where we wouldn't have to reinvest, and for an old house built in the 50s, we don't want to spend the same amount until everything is done as for a new house. We find that too much. I will get back to you. It’s a great forum, thanks to those who make it possible...