FormiSven
2023-05-11 12:07:15
- #1
Hello everyone,
at the moment, in times of rising interest rates and construction costs (with some friends in our circle who also want to build), we are asking ourselves whether we can even build in the foreseeable future. During my research, I came across this forum and am looking forward to exchanging opinions.
Our current framework conditions:
[*
In our new development area, there are currently four houses (or still under construction), all builders had already finalized financing at the end of 2021/beginning of 2022 and were able to secure favorable interest rates. We have reserved or bought the fifth plot, all other eight plots were temporarily reserved in mid/end 2022 but were not taken by interested builders – primarily due to interest rates & construction costs. For us, this also means something good: the municipality waives the contractually stipulated construction deadline with completion in June 2027 (shell June 2025) and allows us to "overrun" by at least 3 years. We already have this in writing and a municipality representative recently told me that they had imagined things differently and expected to have sold all plots definitively by the end of 2022.
Do we have a chance or are the house construction costs exorbitant? I look forward to your experiences!
Best regards Sven
at the moment, in times of rising interest rates and construction costs (with some friends in our circle who also want to build), we are asking ourselves whether we can even build in the foreseeable future. During my research, I came across this forum and am looking forward to exchanging opinions.
Our current framework conditions:
[*
- m30, approx. €3,000 net, completed Bachelor's & Master's degrees in Marketing, permanent full-time employment in global marketing since the end of 2017, confirmed internet promotion next year (+ approx. 10% net salary)
[*]w29, approx. €2,000 net, full-time employment as a press officer since the end of 2018, currently limited until 12/31/2023; full-time position/conversion into an unlimited employment contract is already being prepared by the employer
[*]Children: no plans in the next 3-5 years, what happens afterward is still uncertain – parents have already promised their support in case the desire for children becomes urgent one day and if needed to help with financing
[*]Equity: unfortunately currently only about €10,000 available – I had a student loan of €42,000 which I fully repaid in 2021, in addition my Bafög loan up to the maximum repayment amount of €10,000 has also been fully repaid; both have unfortunately significantly reduced our/my equity. In hindsight, I am glad I took out the student loan and completed my studies – I would do it the same way again.
[*]Current expenses: approx. €700 warm rent including electricity (65sqm apartment), further expenses:
[LIST]
[*]Car #1 (leasing): €190 / month
[*]Car #2 (financing): €260 / month, paid off with current installment by early 2025
[LIST]
[*]Since we live in the countryside and both have 30-40 km commutes, we unfortunately depend on two cars; public transport here is almost non-existent or not to the extent that commuting would make sense for us.
[*]€400-600 / month are currently saved (2 ETF savings plans / overnight money; sometimes more, sometimes less)
[*]No other liabilities or loans.
[*]We go on vacation with the dog once a year – as cheaply as possible in the mountains or at the sea, small Airbnb, maximum €1000. We would give this up in the future as well.
[*
- Desired plot was bought/financed by the municipality in 2022 (new development area with 13 plots): 799 sqm, €100/sqm fully developed -> €80,000 cost
[*]Current repayment / month: €700, should be increased to €1000-1200 soon if it were up to me, variable loan through the house bank (in hindsight we could also have fixed it for 1-2 years, but hindsight is always 20/20)
[*]Current remaining debt: about €65,000, special repayments and full redemption possible at any time free of charge according to the contract
[*]House wish: standard; approx. 140sqm, fenced garden with small terrace, carport, no frills like smart home, photovoltaic system would be great of course, but it would have to fit into a possible overall budget.
[*]There will unfortunately be no inheritance from either her or my parents. Her father passed away in 2015, all currently renting. Overall, neither of us comes from financially well-off families, so I believe we are more cautious in our financial consumption and try everything to somehow realize our dream of building a house one day. My mother and her partner would be able to support us with about €25,000 for a possible house construction (a drop in the ocean, I know).
In our new development area, there are currently four houses (or still under construction), all builders had already finalized financing at the end of 2021/beginning of 2022 and were able to secure favorable interest rates. We have reserved or bought the fifth plot, all other eight plots were temporarily reserved in mid/end 2022 but were not taken by interested builders – primarily due to interest rates & construction costs. For us, this also means something good: the municipality waives the contractually stipulated construction deadline with completion in June 2027 (shell June 2025) and allows us to "overrun" by at least 3 years. We already have this in writing and a municipality representative recently told me that they had imagined things differently and expected to have sold all plots definitively by the end of 2022.
Do we have a chance or are the house construction costs exorbitant? I look forward to your experiences!
Best regards Sven