Construction costs and financing for apartment or house

I find the bias that becomes apparent through such considerations super interesting. On the one hand, investment and saving in this country is equated with [Tagesgelder] or [Sparbüchern] (the eternally return-free product of the savings banks), because everything else is devil's work and gambling. It has to be safe. On the other hand, people want to pump all their savings and 30% or more of their income for the next 30 years into a single house, taking out a huge loan to do so. Because it has such a great location, because it will surely increase in value, because ... this behavior violates all the basic rules of smart investments and is gambling of the worst kind. Also with credit (leverage). Totally crazy! Only suppression helps there.

I find the bias that becomes obvious through such considerations super interesting. On the one hand, investing and saving in this country is equated with daily money accounts or savings books (the eternally yield-free product of the savings banks ), because everything else is devil's work and gambling. It has to be safe. On the other hand, people want to pump all their savings and 30% or more of their income for the next 30 years into a single house, taking on a huge loan for it. Because it has such a great location, because it will probably increase in value, because ... this behavior violates every basic rule of smart investments and is the worst kind of gamble. Also with credit (leverage). Totally crazy! Only repression helps

We build a house assuming to make a loss with it... at the very least NO profit compared to other investments (stock market etc.).

And that despite AAA location

We built a house because we wanted to and we didn't care about the location and we also don't care about profit.

I have never calculated like this and never will. By the way, I always found saving stupid as well

The big loan too, but that's just how it is...

On the other hand, people want to put all their savings and 30% or more of their income over the next 30 years into a single house, taking out a huge loan for it. Because it has such a great location, because it will surely increase in value, because ... this behavior violates all the fundamental rules of smart investments and is a gamble of the worst kind. Also with leverage from credit. Totally insane!
Only repression helps

Yes and no.

You invest in your own living situation; the utility value of your own house is greatest for its owner. If you lived in my house, your utility value would be (almost) zero, because your job is, for example, somewhere completely different, and vice versa. The higher own-use value is also always underestimated when rent and purchase are compared.

Appreciation/retirement provision is indeed something you can or must look at regionally and locally. Against this background, the current development, that people (locally) are moving back to the countryside more often, is quite interesting. However, this is not a widespread trend – metropolitan areas like Cologne/Leverkusen, Hamburg, Frankfurt, Munich etc. have sustainable growth forecasts that do not just reverse because a small article appears in Spiegel.

Best regards
Dirk Grafe

Good evening,

A plot of about 400 sqm would thus cost approx. EUR 600,000 including incidental building costs, and for a house of about 140 sqm including cellar and garage, we "optimistically" estimate EUR 350,000. We have not excluded prefabricated or wooden houses but tend more towards a solid house with 36 cm bricks and two floors without an expanded attic. Everything else is still completely open.

1st question: Are the construction costs for the house realistic, or what would one have to give up to make it realistic?

From my point of view, the ratio of land costs to house costs is not correct. However, this probably will not change anytime soon in Munich and the surrounding area.

Choose a small provider, then you should be able to stay within budget with the following features:

[*]New construction exclusively according to the Energy Saving Ordinance (have a boxed-in section from the cellar to the floor installed. If there is money left later, you can simply retrofit a photovoltaic system)
[*]the cellar remains a utility cellar
[*]controlled residential ventilation with heat recovery
[*]otherwise stay standard
[*]painting work + floor coverings in EL

From your budget, you can calculate a good EUR 30,000 for incidental building costs; provided there are no surprises in the ground, then gladly more.

The garage will not be included at the beginning; a parking space is, however, in my opinion, not the end of the world.

Rhenish regards

Thank you, I will google the abbreviations.

According to the municipality, there is a gravel soil layer under approximately 80 cm of topsoil, the groundwater is about 20m below the surface.

We will try, but do not see great prospects in the bidding process.