Hello everyone,
since I started dealing with the topic of house construction two months ago, I have now also registered in the forum.
A brief introduction to me and my wife: Both employed (civil engineer and real estate assistant) with an income of 4xxx net.
Equity capital: 50,000 euros.
One would actually suspect that with this equity and net income, one can easily acquire property. However, since I do not want to pay off a loan for 30-35 years but a maximum of 25 years, and also do not want to exhaust the limit completely, the monthly rate and thus the total amount are limited very quickly. 250,000 net + ancillary construction costs equivalent to the equity would be the limit here. In Berlin and the surrounding area? Basically unthinkable.
Now, I am a civil engineer (but in concrete repair and therefore not an expert in single-family houses, etc.) and can therefore assign the construction prices, etc., and with additional interest in the real estate sector through my wife, also understand the circumstances of the high general prices for land.
With 250,000 net + ancillary construction costs, generally speaking, not much can be done nationwide in new construction, in my first assessment.
A lot has already been philosophized in other threads here about construction prices, possible capital, and what is needed. When I see bargain houses on TV, for example, I also shake my head in disbelief here. My assumption is that one does not have much joy with such a house. Heating system, piping, electricity, thermal insulation... these are certainly often overestimated.
Currently, I am researching prefab houses with personal finishing. But I do have some concerns about that, even though I assume that the substances nowadays already provide a certain standard.
So what are the options?
To enslave oneself for 30 years and take the loan to the limit?
House auctions?
Hope for a bargain plot including an inexpensive prefab house as a shell (lots of work and possibly many worries)
Since I want to start building the house in the next 24-36 months, the first insights are sobering.
The construction company I work for could at least provide the foundation slab + civil engineering work such as drainage, etc., inexpensively. I also know structural engineers and the like. Maybe the project can be implemented with a "small" budget due to these circumstances after all.
Has anyone perhaps already managed this?
Hi Berlin85,
I can absolutely understand your concerns. Because I could, can, and will never reconcile myself with debts of such dimensions (200k upwards) and the associated everyday side effects for 20 years and more.
Of course, 1600 EUROS in 20 years will not be what it is today either. But first, that has to happen! In other words, you first have to pay 1600 NET for 20 years! And if house prices fall back to a human level – which I believe – then the 1600 EUR NET won’t be any easier to pay, knowing that the place then is worth not 500k but “only” 400k. But of course, that is endless speculation...
The problem with your question is just that you are asking in a house construction forum. Here, many users have made the decision to sacrifice a large part of their current salary for the house every month for 20 years and more. Rationalizing and sugarcoating are part of everyday life here. So the tendency of the answers here in the forum is clear.
So, don’t let yourself be cornered here. Don’t believe everything that is written here. And don’t be unsettled by statements like “why this tight corset?” or “why not push the limit?” Of course, listen to them and consider them! But don’t forget WHERE you are asking. The coin always has two sides.
You could also, for comparison, post your question in the frugalism forum and see what comes out of it.
In this sense: good luck with your decision-making and with bearing the consequences.