How to afford building a house and buying land today?

2019-06-16 23:09:35

Sounds harsh, but it is reality.

A bit "naive" and simple-minded.

And I bet you won't save up to €40,000 in 10 years.
Because whether by force a used property or a new build – you will have to take the bank’s help. With your math skills anyway.

So if I pay €1300 somewhere for a cold apartment, then a house there probably costs €1 million.

Oh, is that so? You must know...

2019-06-17 08:55:28

So if I pay 1300 somewhere for a cold apartment, then a house there probably costs 1 million.

Here, 130 sqm cold costs around +/-1500€.
The house with 165 sqm did not cost a million.

2019-06-17 13:50:05

You can either wait for the divorce houses in 10-20 years or buy a divorce house from 10-20 years ago now. There is no difference, except that you live in it 10-20 years longer.

By the way, most of these terrible renovations and maintenance work are highly voluntary in the majority of cases. I see it with my parents. Built in the 70s and almost everything that has been done to the house since then was not yet necessary in the sense that the old one no longer worked. The new windows are prettier, safer, and insulate better, yes. But the old ones would have done it too. The roof is now asbestos-free but as long as the asbestos is on the roof, it doesn’t harm anyone. The bathroom was completely functional, just not as nice anymore. You would have had to wait longer, everything comes back after all and so on. The heating was probably the only mandatory thing, but I don’t know exactly.

Of course, it is not my goal to never renovate or modernize anything, but in a paid-off house I have the freedom to postpone or bring it forward. When renting, you are at the landlord’s mercy (and have to partially pay for modernization anyway). The house will not collapse if you don’t modernize it, but you always have to keep paying rent. On time every month, for life.

Yeah, well told. But it simply doesn’t work out in most areas. I have bought and renovated two old buildings so far. There are of course people who buy an unrenovated old building and just move in, but I think they mostly represent the minority.

Exactly what is NOT done is consistently factored in. Water, wastewater, bathroom, electricity, kitchen, windows, roof, insulation. These are the major building blocks of a house. An old building that is really still equipped like that is worth significantly less than the renovated property. Whether it works or not.

2019-06-17 14:10:31

An old building that is still equipped in this way is worth significantly less than the renovated property.

So in our city, the two most expensive neighborhoods for rental apartments are one where people live among many single-family houses of high earners in the area, and the neighborhood where there are almost exclusively old building apartments. These are actually (which I do not understand) very popular. And since I pay a little attention to the market (boredom or whatever), I know that these are usually significantly less well equipped than those in the mentioned single-family house neighborhood. So just because it’s an old building doesn’t mean it’s cheap...

2019-06-17 14:17:37

But even in the areas where that is factored in, you can simply keep living in it without doing anything to it. It goes without saying that you won't get the same price for a sale as if you had renovated it.

2019-06-17 17:11:02

What I wanted to express was that regular investments in the home are necessary to maintain its value. If you just live it down, in the end you have a property that is worth correspondingly less. So you can't stubbornly calculate and say: I pay x interest to the bank and y repayment. After 30 years, I will have saved the fictitious selling price. If you don't invest anything during that period, you are just living the house down. Or you invest, but then that has to be factored into the calculation. Reserves are often mentioned here. These were not considered in the previous calculations. That reduces the advantage compared to the tenant accordingly. And a lot goes into it. Here a bit in the garden, there a new motor for the garage door. Sure, the tenant probably doesn't have a garden and no electric gate. The living value is also, in my opinion, different. But the owner also pays many things on the side. A realistic calculation is difficult there. And I still claim: the smart person rents and rents out property.

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How to afford building a house and buying land today?

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j.bautsch

Kekse

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