spocky80
2013-02-25 23:59:39
- #1
Hello,
my question is probably not clear and concrete enough to answer. Nevertheless, I would appreciate opinions. I hope some people find time to read through my text. :)
My current situation: I live with my wife and a child in a rental apartment for just under 600 euros cold rent.
Long-term planned future: We will take over my grandparents' house. Of course not as long as my grandparents are still alive. Naturally, I wish them a long time with us and they are still very fit for their 80 years. The takeover of this house is therefore difficult to estimate in terms of timing.
Short-term planned future: We have considered the possibility of buying or building something of our own for the transition period. Two aspects led us to this idea: 1. We find 600 euros rent less desirable than paying off our own property. 2. We are not sure if our savings in the bank will still be worth as much in some time as they seem to us today. The typical "real assets instead of money" thinking.
The idea behind the idea is as follows: We now build a small single-family house as cheaply as possible - and I really mean cheap - for the transition period. Cheap because later we want to move into another property anyway. So the house now should only serve to no longer pay rent and to convert money into real assets. If in about 10 years we then take over the other house, we would like to rent out the house now built.
The house is to be built in the vicinity of Braunschweig (just over 10 minutes to the city center), train station in the village with a fast connection to Braunschweig and Hannover. Highway a few minutes away. Shopping facilities, gas stations, doctors, kindergartens and all types of schools are directly in the village. The cheap Town & Country house is estimated at 140,000 (approx. 110m² living space), all other costs including land have been calculated by ourselves and with the bank in a plan including possible necessary financial reserves for forgotten items. The loan is calculated so that it is paid off in 15 years (interest fixed for the entire term) and our installments do not exceed our current cold rent.
I am aware that many would advise against such a low house price. Considering that it is "only" a transitional house for us, I think building so cheaply makes more sense than for someone who builds a "forever" house. For a "forever" house we would also spend more money, no question.
The project would only be pointless for us if it became apparent that the house could not be rented out or sold at all after the assumed 10 years, which would also be an option to consider. Strictly speaking, after 10 years we would have saved 72,000 in current rent alone. So such a "loss" from selling would naively not be a loss.
Now I have already used the keyword in the last sentence: Is our plan too NAIVE or is it basically a good plan to save rent during the transition period and protect our savings from financial uncertainties?
I would appreciate any feedback - whether objective or subjective, short or detailed.
Best regards Sebastian
my question is probably not clear and concrete enough to answer. Nevertheless, I would appreciate opinions. I hope some people find time to read through my text. :)
My current situation: I live with my wife and a child in a rental apartment for just under 600 euros cold rent.
Long-term planned future: We will take over my grandparents' house. Of course not as long as my grandparents are still alive. Naturally, I wish them a long time with us and they are still very fit for their 80 years. The takeover of this house is therefore difficult to estimate in terms of timing.
Short-term planned future: We have considered the possibility of buying or building something of our own for the transition period. Two aspects led us to this idea: 1. We find 600 euros rent less desirable than paying off our own property. 2. We are not sure if our savings in the bank will still be worth as much in some time as they seem to us today. The typical "real assets instead of money" thinking.
The idea behind the idea is as follows: We now build a small single-family house as cheaply as possible - and I really mean cheap - for the transition period. Cheap because later we want to move into another property anyway. So the house now should only serve to no longer pay rent and to convert money into real assets. If in about 10 years we then take over the other house, we would like to rent out the house now built.
The house is to be built in the vicinity of Braunschweig (just over 10 minutes to the city center), train station in the village with a fast connection to Braunschweig and Hannover. Highway a few minutes away. Shopping facilities, gas stations, doctors, kindergartens and all types of schools are directly in the village. The cheap Town & Country house is estimated at 140,000 (approx. 110m² living space), all other costs including land have been calculated by ourselves and with the bank in a plan including possible necessary financial reserves for forgotten items. The loan is calculated so that it is paid off in 15 years (interest fixed for the entire term) and our installments do not exceed our current cold rent.
I am aware that many would advise against such a low house price. Considering that it is "only" a transitional house for us, I think building so cheaply makes more sense than for someone who builds a "forever" house. For a "forever" house we would also spend more money, no question.
The project would only be pointless for us if it became apparent that the house could not be rented out or sold at all after the assumed 10 years, which would also be an option to consider. Strictly speaking, after 10 years we would have saved 72,000 in current rent alone. So such a "loss" from selling would naively not be a loss.
Now I have already used the keyword in the last sentence: Is our plan too NAIVE or is it basically a good plan to save rent during the transition period and protect our savings from financial uncertainties?
I would appreciate any feedback - whether objective or subjective, short or detailed.
Best regards Sebastian