Is it advisable to build a house? What do you say about the financing?!

  • Erstellt am 2015-03-20 13:36:00

fresh2

2015-03-20 13:36:00
  • #1
Hi,

I am from Berlin, 33 years old, and considering building a house in the next 2-4 years. Of course, the question arises whether this is financially feasible.

Age: 33
Job: Public sector, permanent contract. Currently 2250 net, in 2-3 years definitely around 2600 net -> full-time
Partner: Definitely 1200 net, with tips at least 1500 net -> full-time

Currently no children, but will be starting soon. My wife wants to go back to work after 10 months (initially 30 hours per week, full-time as soon as possible)

Loans: Both on our respective vehicles, mine will be paid off in 3 years (currently 10,000€ remaining).

Equity: Currently about 5000 euros, approximately 6-7k euros should be added annually. So roughly 20,000€ in 2 years.

Why a property: It is unquestionable that a house would be best, but it could also be a nice condominium with a garden. However, prices here in Berlin (not the outskirts) do not differ substantially. I am from Berlin-Reinickendorf and want to stay near there. I have compared land prices (500 m2 on average 150,000-200,000 euros). In the Lübars district, 400 m2 are available for 100,000€. That would be the target district. 400 m2 should be enough.

House idea: 4 rooms with 110-125 m2. We don’t need a huge garden. Therefore, 400 m2 is sufficient (possibly also 350?). I am aware that a Berlin location is expensive, so I would accept a smaller plot. I’m not a big garden fan anyway (work should be manageable).

House type: Prefabricated house in front. The price limit should be 150,000€. Is this possible? The features should be normal to upscale. That means electric shutters downstairs, underfloor heating, triple-glazed windows, maybe some solar panels for energy savings. We don’t want a basement. The type basically a small town villa. Nice form factor.

That would then be:

Land: 100,000€
House: 150,000€
Additional costs: around 40,000€
= 290,000€

I would then have to finance this fully minus the costs for broker etc. (For that I then have about 20-30k available equity).

Now the crucial question. Would we be overstretching ourselves? Maximum financing term should be about 25 years.

Rent for 3-4 rooms approx. 100 m2 should be calculated at 1000-1200 with heating included.

Standard of living: Normal. Everyone has their car, one trip per year. No brand fetishists.
 

Pumbaa

2015-03-20 13:50:09
  • #2
A house for 150000 with upscale features??? I'm afraid that's just a dream...
 

Bauexperte

2015-03-20 14:22:18
  • #3
Hello,

for possible financing, other users with more expertise in this area will write than I have; I don’t like to spread myself too thin. For that, I may again play the spoilsport...


That much money...

Prefabricated house - then I recommend as a first step to buy a car with a trailer hitch; then you can surely find something in this price range with the blue colleagues A***auf. How and whether you can complete your house then is a whole other story.


And all that for EUR 150...?

Seriously: these days you have to reckon with a price per square meter/footprint of €1,400.00 in Berlin; for a solidly built house. For a high-quality prefabricated house rather €1,500.00 and up; depending on the provider. That means the house price for 120 sqm/footprint would start around EUR 168,000 in 2015 and is open upwards. By the way, electric shutters are not yet included in this estimate, nor are incidental building costs & co. As of 01/2016 the tightened Energy Saving Ordinance 2016 applies – then it will be even more expensive, since 25% more insulation must be installed.

Please read up calmly here in the forum; you will find answers to many questions that are burning on your mind.

Rhenish greetings
 

maximax

2015-03-20 14:32:24
  • #4
150k for 110 to 125 sqm is the absolute bottom end of the price scale. If you equip the catalog house at this price in a "medium/upscale" manner, you are at 200k. As a city villa, you are at 250 to 300k. Painting work, garage, and outdoor facilities add another 50k.

Let's say you adjust your requirements to a construction project for 250k, then you add a plot of land for 100k, so 350k. A solid financing has 20% equity, so 70k plus the additional purchase costs. With a 25-year financing costing 300k, you are at a monthly rate of 1.5k. Plus ancillary costs and reserves, so 2k. Minus your 2 cars, you have 1000 euros left to live on.
 

ypg

2015-03-20 17:01:26
  • #5
1. First, read up here in the forum, 2. start a non-binding inquiry at your main bank to find out how much is possible with your salary and the two consumer loans, and then 3. check the usual portals to see for how much the plots are offered and what you are allowed to build on them are allowed. You can also pick up the latter and the former as a hobby if you have to postpone building the house for various reasons, e.g., due to unrealistic wishes and/or reduced creditworthiness. Meanwhile, save and save to increase your equity capital a bit :)
Best regards, Yvonne
 

fresh2

2015-03-22 20:52:48
  • #6
hi,

thanks first of all for the answers. I am quite surprised that I am so far off with the price (for the house).

that would be, for example, our taste:

link removed

a colleague built his house with this prefabricated house provider 3 years ago:

- 140 m2
- roller shutters completely electric (also upstairs apparently)
- underfloor heating
- modern geothermal heat pump etc.

he paid 190,000€ for everything together. means house considerably larger, electric windows also upstairs and the geothermal heat pump which we would waive, are about 150,000€ for the smaller house so unrealistic?

.............................................................................

Edited: please observe the forum rules and refrain from advertising links
 

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