House Building Forum - Would you buy or build a house again?

We aim for 50%
Let's see if it works out (less is also okay)

And whenever I have taken a risk after careful consideration, it has moved me forward in life.

YES! Yes. As I wrote: You have to bite the bullet. That moves you forward. Brilliant contribution from you. Great.

Well... you can't really just say 30% across the board. Our plan is about 50% of the net income within the first 5 years, which is quite high though. From year 6 it goes down to 20%. Loan amount 500,000. Fixed at the bank (1.5% repayment) it's only about 13% that we need to cover (just in case).

Regards, Steffen

The plan sounds overall reasonable.

The "magic 30" is just thrown out there...
On average, you are around that too... haha.

27% of net income and 20% equity. Certainly a slightly higher burden than in a rented single-family house. However, as already mentioned by previous posters, a savings bank as the contracting party instead of a landlord who can declare personal use at short notice. On our side, the ground floor is already ready.

I have to write something about this again.

The magical 30..... yes, that has been thrown into the room.

But I am firmly convinced that EVERY family with the 30% depending on equity can manage a construction project. One will just be smaller, the other bigger.

"Hunde, wollt Ihr ewig leben"? An Abbach film from way back... with lots of explosives. Provocative.
I say: Do you want to live renting forever?

Almost 70% of Germans: LIVE IN RENTED ACCOMMODATION. Leading across Europe. Tenant people. Politically intended? No idea. But that is a fact.

And landlords are:..... I won’t say anything more here. Otherwise I would be committing a sin.

Well.
Crazy.

Either you enrich the landlord.
My ex bought - among other things with my money - a 450 hp 8-cylinder car, which I, stupidly, explained to the guy back then how it works, because I am capable, I can even configure an AMG. The one for the woman was smaller, only 250 hp (my wife and I don’t have that combined, we are normal and drive normal).

Others live brilliantly and super-super on this kind of rent and yet when arbitrariness comes, you’re still completely screwed.
Ultimately the money is gone and flows to a bank.

Or you enrich a housing company or cooperative.
These actually care a bit about the well-being of the tenants. Look at the latest takeovers on the market ([Manager-Magazin], [Wi/Wo], etc.).
They are only interested in shareholder value. Exclusively. They are squeezing lemons.
Of course, here too the rent ends up somewhere at a bank... and with greedy shareholders and retirees in the USA/England, they only have pension models based on capital. They demand the lemon press.....

Whoever falls within the magical 30% figure and doesn’t build today with the interest rates - of course with reasonable fixations and secured incomes (life: life-threatening, secured as well as you can foresee) - must have very different reasons.

Build. Within the scope of what’s possible, but build.

Pay the institution. Not rip-off or enrichment institutes. Neither does anything for you except constantly fleecing you.
Sure: banks fleece people too..... but with building you have at least one "middleman" less. You end up right where the rent also somehow ends up.

That was emotional for once. I’m waiting for the minus points from you and for the slap from the mods..... but I had to get this off my chest.

I, stupid and dumb old fart, had to turn 50 to realize this. How dumb must I have been in the past.... I better don’t want to know.

Thorsten

I have to write something about this again.

The magical 30.....yes, it has been thrown into the room.

But I am firmly convinced that EVERY family with the 30% depending on equity can manage a construction project. One will be smaller, the other bigger.

"Dogs, do you want to live forever?" An Abbach film from ages ago...with lots of explosives. Provocative.
I say: Do you want to rent forever?

About almost 70% of Germans: LIVE IN RENTAL HOUSING. Leading in Europe. Tenant nation. Politically desired? No idea. But it is a fact.

And landlords are:.....I won’t say anything more here. Otherwise, I would be sinning.

Well.
Crazy.

Either you enrich the landlord.
My ex - among other things with my money - bought a 450 hp 8-cylinder car, which I, being a fool, even explained to the guy back then how it works, because I know a thing or two, also how to configure an AMG. The one for the wife was smaller, only 250 hp (my wife and I together don’t have that power, we are normal and drive normally).

So others live brilliantly and super-super on this kind of rent, and even if arbitrariness comes up, you are still totally screwed.
In the end, the money is gone and flows to a bank.

Or you enrich a housing company or cooperative.
These really care somewhat about the well-being of the tenants. Look at the latest market takeovers (Manager-Magazin, WiWo, etc.).
They are only interested in shareholder value. Exclusively. They are lemon squeezers.
Of course, the rent ends up somewhere with a bank here too.......and with greedy shareholders and pensioners in the USA/England, they only have pension models based on capital. They demand the lemon_squeezing.....

Whoever is within the magical 30% figure and today doesn’t build - of course with reasonable fixed interest and secured income (life: life-threatening, just secured as well as one can foresee) - must have completely different reasons.

Build. Within the limits of what is possible, but build.

Pay the institution. Not to rip-off artists or enrichment institutions. Both do nothing for you except constantly fleece you.
Sure: banks also fleece people.....but with building, you at least have one "middleman" less. You end up exactly where rent otherwise somehow ends up.

That was emotional for once. I’m waiting for your - points and for the mods’ slap on the wrist.....but I just had to get this off my chest.

I, stupid and dumb old fool, had to turn 50 to realize this. How stupid must I have been in the past....I prefer not to know.

Thorsten

Your plea is all well and good. Economically speaking, you are not right. You can calculate it either way. The all-important aspect is often neglected: when you invest in a home, you speculate on rising land and property prices. This business can go either way. However, building a home is not just about economics. If I stay in my property for life and am happy there, I can pretty much not care how much my property is worth...

Much more important to me is your view that everyone could build with 30% of their income. That may apply to Velbert, Osnabrück, Neubrandenburg - or whatever - (Of course NOT to EVERYONE even there.) For the middle Neckar region or the greater Munich area and many other parts of (southern) Germany, it definitely does not apply!