Financing plan too unrealistic?

  • Erstellt am 2022-05-19 19:20:41

mayglow

2022-05-20 14:26:41
  • #1


I always feel like “interim house” sounds like “and in 2-3 years I’ll be gone again” and I agree, the additional costs often hit so hard that it’s not worth it at all. But when newly built terraced houses for a family of four are being discussed here, then I think the period of time is somewhat longer (because you might reorient yourself again, for example when the children are in school and you’ve found a regular routine and possibly both parents are working again. Or also only when the children have left the house). That means you might use the “interim house” for 10 years or longer. I would then say that the purchase-related incidental costs probably don’t play such a big role anymore today. The “interim” is presumably meant to express more that it doesn’t have to be the jack of all trades right away, but rather you orient yourself more to the current actual needs, which are often lower than if you include lots of “what ifs” for the future. (AKA “when (the newborn) child is a teenager and has visitors,” “when grandma needs an extra room,” “when we ourselves are old”) But if you didn’t do that from the beginning either way, I don’t see much difference.

In my opinion, most of the houses you consider for this purpose are also perfectly suitable for living in permanently. Which is why I’m not very happy with the term.

Otherwise, here with us (Ruhr area) I also see terraced houses a lot in the 500k range. For about 450k-480k there is still more available (just recently there were a few projects again). Below that, there are actually only 1-2 developers left, and if there is currently no suitable project, then I guess bad luck (or wait). So it’s not like cheap terraced houses are raining down everywhere. (I see the 600k+ range much more frequently than the ~400k range. Sometimes because of extra “luxury” like a basement, sometimes just because of the location.) You quickly end up in a range where you’re no longer really with the “cheap interim house” if you’re not careful.
 

11ant

2022-05-20 15:27:17
  • #2
I am already so old as to remember unsynchronized manual transmissions, and besides that a union member knowledgeable about the associated drinking culture. Therefore, I borrowed the term "Zwischenhaus" from Zwischengas and Zwischenbier :) I wrote the post "Das Zwischenhaus: ein Sprungbrett" because many homebuilders foolishly risk a financial muscle fiber tear to aim for the perfect permanent home right on the first step of their property ladder. On the one hand, sticking to the belief "you only build once" nowadays easily crosses the line from a "normal" balancing act to a blood tackle: creating the space so that the desire to have children might be fulfilled three times and each child from early on should have a princely single room costs expensive living space to build. At the same time, the house should remain loyal to the building couple even into their walker phase. If then there is brick cladding, a fireplace, an atrium, sauna, all in five-star materials thrown in, one could sum up the building story of such a house with the words "making unaffordability easy." During the whole time, the Damocles sword of a razor-thin financed budget hangs like an imposed coup de grâce just hair’s breadth above the family, who on vacation on their balcony even have to count the ice cream scoops individually, only two on Sundays. Usually, one also comes from an apartment and has no experience with the housing form "single-family home" — or even worse: one does, but from memories of the summer heat under an uninsulated pitched roof or something similar, which one never wants again, further overloading the list of must-haves. Without a "dress rehearsal" you only learn in the very large and expensive house which planning decisions you would have been better off making differently. In the Zwischenhaus, however, one willingly waives the part of the living space size not yet needed, has more disposable income for fun pool visits, movie tickets, etc., and at the same time gains residential experience a whole octave cheaper. Additionally, with "good management" as the borrower, one continues to build up creditworthiness. Extra repayments instead of payment holidays give the borrower's reputation the right drive. Since a child has a nine-month delivery time and becomes school-age in another six years, it is no surprise when they show up as teenagers. Plenty of time then to hold a Zwischenhaus for ten years. Ten years of plaster instead of brick initially sounds harsh, yes, maybe. But ten years of sleeping more peacefully than if prices absolutely must not rise again before the next pay raise—that’s something worth something, creates quality of life, and wears the person down less (which might then even save the walker). And what demands does a child have anyway? — at first toys, and as a teenager fast Wi-Fi, but never huge tiles in the very hippest fashion color! Especially because I myself have been interested in architecture since I was a child, I know that most children do not share that interest. So you can "dare" to climb the property ladder in not so painfully large steps and approach your homeownership career as an arithmetic problem and with a pinch of glossy-paper renunciation. To make the calculation a rewarding "success" you must, of course, consider your individual data: if the child is already five years old, then the holding period of the Zwischenhaus until the child moves to secondary school is naturally no longer ten years. Then, for example, one would rent instead of buying or building but even then would have gained years in which to clarify whether the child remains an only child or ...
 

Benutzer 1001

2022-05-20 15:41:11
  • #3
I am now glad about this constellation, to have a certain security. Two years ago, no one would have thought to be above 3% again. Although 20 years is already a long time for this product.
 

ypg

2022-05-20 19:15:34
  • #4

In common usage, this is called a starter property. You can make something out of that word too ;)
Often a townhouse on a smaller plot, with two or three bedrooms. Completely sufficient for the small family with a smaller budget.
 

Yosan

2022-05-20 21:12:20
  • #5

Especially since you can also come to love your terraced house with plaster and without a gallery, etc.
My parents bought a terraced house in a beautiful village edge location at the end of the 90s... out of necessity. It had been the rental work property due to my father’s on-call duty. When the company wanted to sell the houses, there was the option: buy or find a rental alternative with 5 children.
The latter simply did not exist on the market. My parents did an excellent job of constantly making rooms multifunctional, so a room was sometimes a dining room, sometimes a playroom, sometimes a study, and sometimes a bedroom. It did not impair the relationship with my siblings that I only had a room for myself at about 17 years old.
My husband and I are now buying the identical neighboring terraced house and are glad that with €1200 monthly payments, we will be debt-free in 25 years... or sooner because the payment should have enough breathing room for special repayments.
It doesn’t always have to be the best of everything.
 

Snowy36

2022-05-20 21:58:02
  • #6
So if this OP can’t afford to have 2 kids with that salary, being so frugal when it comes to living space, building on such an affordable plot, then I don’t know what else to say?!

Dear OP: we have the same figures and manage well… better check if your all-in house construction price is really correct and if it is, then you will be able to handle it well even with 2 kids…. You don’t have to drive 8000 km for a child, it doesn’t need 5 expensive hobbies, sometimes you just have to say: no

My friend’s daughter rides horses, plays piano, does fencing, scouts, tennis, and swimming… 500 euros a month are quickly gone… the child will never know what boredom is and what you do with it
And it will never have a relation to money…

I also used to ride as a kid… but only that and I had to bike there myself and it was far…..

Other hobbies like gymnastics club I also had and those were almost free…

Here with us the trend is already:
1) create a stock portfolio for the child as soon as it’s born
2) save money so you can buy the child a building plot later or give something towards it because they won’t be able to finance it alone anymore

I always give up there… no one pumped 200k up my ass either…
 

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