Building a house at nearly 60? Risks of building/buying a house.

Before my first post: first a friendly greeting to all the kind posters.

Until now, I was a convinced tenant... because of flexibility, and for financial and family reasons. Now this Mr. Draghi & his yes-men have turned the world upside down: money is the cheapest thing you can buy.

For a house building project, I can put my substantial rent into the balance and add some myself. With 40% equity properly financed on the principal, such a house of my own (well, 60% would still belong to the bank) would probably make economic sense. I lose my flexibility, but I don’t need it like I used to.

I understand as little about real estate as I do about cars. Both are necessary economic goods that cost a pretty penny and cause trouble. Nevertheless, both have their appeal. For the first time, I am seriously considering what it would mean if I got myself a house, i.e. had one built, since I cannot contribute any labor myself.

What bothers me are the risks of building/buying a house. Here, too, I draw the car analogy. With a car, I get 100% delivered as ordered. If there are defects, there are a few attempts at rectification, then the vehicle goes back to the seller. And how is it with a house? Consumer protection? Not to be found.

Still, given the circumstances, it seems worth a try. I’m making a plan now. First, I’m going to the model home estate in Frechen. And already there I have the uneasy feeling that I will be pretty much on my own with my questions and doubts.

Hence my very first strategic consideration, and hence this posting: I need advice. Someone who advises me solidly and based on their own many years of experience. Someone who knows the pitfalls over which a greenhorn stumbles. Architect? Why do I need an architect if the house is delivered by the prefab house manufacturer and placed as contractually agreed? What would the architect tell me?

Then I read that the contracts with the house manufacturers very often contain serious defects because services are not listed. Then trouble is preprogrammed. I want to avoid that at all costs proactively.

In the manufacturers’ brochures, I always see only houses. But what about the garages? Where do the 4 trash bins go? Where do my bikes have space? Where is my grill stored in winter and where in summer? My neighbors with a semi-detached house plus garage often have their three cars everywhere, only no car is in the garage. The garage is the missing storage room in the house. Was all that planned by the architect beforehand?

I understand so little about it that a building project still frightens me. How do people with experience see the picture I have drawn here? That would really interest me a lot, thank you.

why a house and not an apartment?

We are country people... I am envisioning a house with two somewhat separate living areas, 2 bathrooms, etc... Children and grandchildren should feel comfortable.

For the topic of defects, external expertise in the form of a construction supervisor/construction overseer can be consulted. We did the same, as we had no idea about construction.

For the rest, it means thinking things through, going through daily routines, making lists (things the house absolutely must have, things that would be nice, etc.), talking to construction companies and craftsmen, talking to current and former homeowners, browsing forums, having discussions with banks, and so on. You gradually get into the topic by growing with the construction. So don’t rush anything. Also, you should plan a house differently at 60 than at 30.

In our construction area, there are also a few couples who have built bungalows for their retirement. So it works.

However, I find 40% equity at almost 60 years old not generous. You should therefore not consider this investment as retirement provision.

Good evening,

First, I go to the model house estate in Frechen. And already there I have the uneasy feeling that I will be pretty much alone with my questions and doubts.

That cannot work in a half-hour conversation either - if it goes well, meaning hardly any frequency - Frechen serves, like all other model house parks, primarily for collecting addresses; btw, only prefabricated houses stand in Frechen. A reasonable first meeting always lasts between 1.5 and 2 hours; we have also had 5-hour meetings; this happens quite often, especially when the (in-law) parents are sitting at the table ;)

I need advice. Someone who advises me solidly and based on their own many years of experience. Someone who knows the pitfalls that a greenhorn stumbles over. Architect?

There are self-employed people who specialize in this aspect of consulting. You can also find information in events on the topic of house building, e.g. adult education centers or the consumer advice center, or also at fairs (by the way, a fair will take place in Hilden at the beginning of November). It is easier to have one or the other consultation with house salespeople. Even an absolute layperson sooner or later - as long as their sole focus is not on the price at the bottom right - develops a feeling for which "advisor" actually advises them or only wants their own best. Essentially, you "learn" by the process of elimination.

Why do I need an architect if the house is delivered by the prefabricated house manufacturer and set up as contractually agreed? What should the architect tell me?

There are quite a few prefabricated house providers who do not include the architecture service including the building application + execution plans in the scope of services. Then you need an architect who takes on this task. Prefabricated house providers often have recommendations for their clientele, but they also have no problem if their prospect finds their own architect.

If you want to build solid (massive construction), you also need an architect who is allowed to submit the building application; in rare exceptions, a simple plan drafter (so not an architect) is sufficient.

Then I read that contracts with house manufacturers very often contain serious defects because services are not listed. Then trouble is preprogrammed. I want to avoid that at all costs in advance.

It is interesting that the negative aspects always stick - but no one asks what the cause might have been; always preemptively recognizing the evil construction industry as the scapegoat. That is by no means always the case. Every pot finds its lid and if the pot is cheap, it will also find a cheap lid!

You rarely find people with common sense making negative statements about their building partner; of course, there is also the occasional Monday black day, I do not want to sugarcoat that. But whoever approaches the house building matter with open eyes and understanding and has internalized that a piece of house requires the price "X" - even if others think "W" would be much cheaper - in the end finds the value of their money again ... without botched construction ;)

In the manufacturers’ brochures, I always only see houses. But what about the garages? Where do the 4 garbage cans go? Where do my bikes get space? Where does my grill stand in winter and where in summer? My neighbors with semi-detached house plus garage often have their three cars parked everywhere, only no car stands in the garage. The garage is the missing storage room in the house. Was all that planned beforehand by the architect?

A prefabricated and also a solid house builder always offers you a piece of house; no more and no less. They do this primarily to be competitive in the market. However, THAT does not mean that you cannot buy the service of outdoor facilities and garage additionally. It is simply subject to an extra charge, not covered by the standard of the respective construction specifications.

I understand so little about it that a building project still frightens me.

It should at first, because it is a large chunk of money that you want to move. In that case, uncle caution is always a good companion ;)

Rhenish greetings on the road

My husband is also "soon" 60 at some point, I still have one generation to go ;)
And we also started fresh.

A nice age-appropriate bungalow with a converted attic for kids and all, or a bungalow with two sleeping wings, that's what I see for you.

Banks could be a problem, they are reluctant to finance pensions (that's how I have understood it so far).

So I would say: consult a financial advisor to see what he thinks :)
And read, read, read: it doesn't make you dumber, and little by little you understand what house building is about - just don't get scared!

P.S. I like your writing style!