Building a house - Does it make sense?

2015-08-04 12:50:16

We, 4 people, want to build a house. We have about 150 TEUR equity immediately available and a few TEUR that we want to keep in reserve - just in case. That means we want to purchase the land from the equity and then still have to finance the house.

We have set a sum of max. 300 TEUR including ancillary building costs and garden layout. According to the first bank meeting, no problem at all.

Now the question - what do you think: We have a monthly net income of 5,500 euros but do not want to have to change our current standard of living. That means we could afford about 1,800 euros for the monthly installment.

Is that feasible or how much additional expenses should be planned after completion?

The 1,800 euros should be fine, as already mentioned above. Depending on how much the plot costs (or what remains of the equity), and what you want, 300k might be tight. But as already wrote, there is still some leeway with 1,800 euros.

I think the thread starter is not so much looking to get a definitive approval from us. I think he mainly wants to know if he feels he is on the right track (rough estimate). When it gets more concrete - meaning he has more detailed data regarding the house and financing needs - he will anyway approach various providers (banks, insurance companies, financial intermediaries) to check real financing options.

Edit: Our posts seem to have overlapped.

2015-08-04 13:46:11

I also think that fits.

What third parties might sometimes lose sight of is that with higher income, the standard of living actually increases, which is associated with higher expenses that are only partially variable. This also involves AV or insurance, cars, etc. Of course, you can sell cars (maybe not, since earning a higher income requires a bigger car, sales representatives, etc.), cancel insurance, but does it have to be that way!?

2015-08-04 15:11:46

Hello everyone,

I would like to hear your independent opinion.

We, 4 people, want to build a house.
We have about 150,000 EUR equity immediately available and a few thousand EUR that we want to keep in reserve - just in case.
That means we want to buy the plot of land with the equity and then still have to finance the house.

We have set a maximum amount of 300,000 EUR including ancillary construction costs and garden landscaping.
According to the first bank meeting, no problem at all.

Now the question - how do you see it:
We have a monthly net income of 5,500 euros, but we do not want to have to change our current standard of living.
That means we could afford about 1,800 euros for the monthly installment.
Is that realistic? We are in our mid-30s, have 2 children and do not plan to have more. Parental leave etc. is behind us, but we also do not want to pay until retirement.

Is that doable or how much extra expenses should be planned after completion?

Many thanks
LeiNi

2015-08-04 15:52:33

The house is already mentally planned. You have to add up the offer plus all the extras plus the outdoor facilities plus incidental construction costs to see if you can get by with 300,000. You can sink endless amounts of money into a house, especially if you live demanding, you also want to equip your villa with comfort items. What is the hut supposed to cost according to [BU]? Where there is a drawing, there is also an offer :)

2015-08-04 16:33:31

The house has already been mentally planned. You have to add up the offer plus all the extras plus the outdoor facilities plus incidental construction costs to see if you can manage with 300,000. You can sink endless amounts of money into a house, especially if you live demanding, you would also like to equip your villa with comfort items.

What is the hut supposed to cost according to BU? Where there is a drawing, there is also an offer :)

Ah - I was not aware that there are already drafts here. Then it should actually be possible to reasonably estimate the costs incurred. Maybe he has already done this with the 300,000. Tip (although this differs depending on the general contractor): Add another 10% to the named sum for the house, then you have a buffer for the (very likely) upgrade and the usually always incurred "unplanned higher costs."

2015-08-04 18:39:10

Tip (although this varies depending on the general contractor): Add another 10% to the stated sum for the house, then you have a buffer for the (very likely) upgrading and the usually always incurred "unplanned higher costs".

That doesn't quite match our experience. Since we knew the house price including the desired technology, many trades were only discussed and decided later (sanitary, drywall, electrical, tiles, stairs...).

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Building a house - Does it make sense?

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