Two young couples are considering building, but they hardly have any idea yet

Hello dear community,

yes, the title of the topic pretty much sums it up.

we (my girlfriend and I) registered here basically just to read along a bit. Of course, there is a reason behind it, but first a brief background and the currently developing idea behind it.

Recently, the two of us were together with a very good couple of friends at the prefabricated house exhibition in Wuppertal. It was mainly meant to just enjoy the nice weather on Sunday. When we were in a house by the company Hanse Haus, we happily discussed the concept of the house to understand it when a really very friendly agent overheard our questions, came out of his office and started a nice conversation with us. In this conversation, of course, he was a salesperson through and through, but he also gave us one or two ideas.

Well, since then, the four of us have been sitting together thinking openly about acquiring property. That it would happen sometime was clear to all of us, but not yet really now, as we are all just in our mid-20s or just above.
But is that relatively young age a deal-breaker for building a home? Probably not.

But now quickly to the idea... We are considering acquiring a house that is to be divided into two semi-detached houses. We would like to live close to each other because the two ladies have been friends since childhood. Basically, each should get their own semi-detached house with their own construction financing. Everything should therefore be contractually and legally separate.

So... now many questions, problems, etc., arise since we are all totally inexperienced when it comes to acquiring property.

What should be considered? Are there criteria that argue against a prefabricated house? What should one pay attention to when choosing the right company? Is there basically a price range in which such a house should move so that one can be sure that qualitatively good materials are used, or is it even appropriate to say something about this here?

What should be considered when selecting the right construction financing? What securities can/must be provided? Is this oriented to the amount of the construction financing? Both parties have equity. What can one roughly expect from a bank if one has two permanent jobs with normal pay and capital in the low five-digit range?

These are basically the things that come to mind right away, but surely there is much, much more that raises questions for us or that we probably have not even considered yet. We are very, very grateful for any comments, reactions, suggestions, any food for thought, and any other feedback.

Oh yes, what might still be worth mentioning is that it should not be a turnkey construction. We want to do a lot ourselves due to our own craftsmanship skills or good people nearby. Can things that you do yourself and thus also purchase yourself somehow be included in such construction financing, or would a separate loan be necessary for that if you have a rough overview of the costs?

I hope this does not sound too clumsy, but you just have a lot of questions when you are new to something, and that is also the case here. Sorry for the long text, but I hope you make your way through it and still feel like answering.

Many kind regards from Wuppertal

Hello racmarsl! Many questions at once. You surely have a friend who is a prospective civil engineer or bachelor. I would clarify the points with him. Regards

Hello racmarsl

First of all, welcome to the forum.

Bauexperte has once again explained everything super thoroughly
But unfortunately forgot one - in my opinion very important point:

Definitely start looking for a plot of land!
The plot (besides proper financing and the right building partner) is the most important thing ever!

Don’t forget that you will live there for the rest of your life (or at least the next decades)!

The location of the plot is crucial – do you want to live rurally or in the city? How is the connection to highways and public transport? What is your daily route to work? Are massive traffic jams to be expected (I live in the Ruhr area – the question of daily traffic jams is extremely important *g*)?

There are many conditions to consider.
I myself was once offered a plot where I could have built my dream house. The only disadvantage: I didn’t want to spend the rest of my life within sight of the soundproof wall of the A40
So it will not be my dream house now, but it’s on my dream plot.

And it is not rare to search for a plot for 2 years. If you still want to build a semi-detached house, it will be even a bit harder, since you need 2 adjacent plots where the development plan allows for a semi-detached house.

As long as you don’t sign anything, you haven’t done anything wrong. Inform yourself without obligation, then you will also get a feeling for how much a square meter costs in your region.

Have fun planning and dreaming!

Micha

At the exhibition, the realtor told us that you should first be clear about WHAT you want to build and then look for the suitable plot of land.

Hi again

(1) Well, everyone has to decide that for themselves. The "realtors" of the developers want only one thing: your signature.
Some have tried that with us too: sign first, then they find the right plot of land for you.
Sounds great.
Only one disadvantage:
If you have signed first, you still have no idea what the house will cost. But you are already committed to this provider. So now they can calmly dictate the prices to you and you can't get out of it anymore.

(2) If your "realtor" looks for the plot for you, you have to be careful that real estate transfer tax is not payable on the plot and house. The realtors also like to say here that you don't have to worry - but what the tax office will say is a different matter!

(3) Dream house or dream plot, that is a decision you have to make - very rarely does both work out!
If you know exactly what you want to build, the plot you can build on by no means has the right location yet.
I wanted to build a detached 1.5-story single-family house (without a basement). But the plot where I could and was allowed to build this house was directly by the highway. Now I live in an ideal location (quiet but very well connected - public transport, A40, A43) but have to build a 2.5-story semi-detached house - and our neighbor has a basement, meaning we have to invest about 8,000 euros more in the foundation.
We decided on the better location and are making compromises on the house. Other builders may see it differently and prefer compromises on the location to build their dream house - the decision has to be made by each person themselves.
But a plot in a perfect location where you can build your dream house...
Could be difficult to find

Best regards
Micha

Hello,

Regarding the property. The real estate agent told us at the exhibition that you should first be clear about WHAT you want to build and then look for the right property. Do you think this is the wrong approach? I actually don't think so, so that nothing happens like with your dream plot.

I hardly believe that you actually spoke to a real estate agent in W’thal; it was probably a seller who either "also" or solely for himself—depending on the size of the provider in question—fulfills the function of the "property advisor". I myself have had to spend some time there and know the little games all too well.

The answer you received suggests that my assessment might not be wrong. If you now agree to the "deal," the seller will be happy because he has all the time to gradually bind you to his company; meanwhile, you won't be able to get out of the "situation" and will have to take what is offered to you—sooner or later, anyway. I find the answers here in the forum mostly quite naive when it comes to the property issue; Micha’s approach is much smarter.

I am straightforward in my job and in my recommendations and keen to ensure that the "decisions" always remain where they are best placed—namely with the interested party. You want to build, then you should first make sure you know how much money you can actually spend in order to decide later how much money you want to invest! A very comfortable situation, free from any kind of pressure. Not necessarily convenient for a seller who is after a quick deal; for a potential builder, though, there is no safer start to the "sweet misery."

@Bauexperte You really conveyed quite a few impressions...

It corresponds to the understanding of my job to work that way... You still need a lot of info and experience. It is important to me to clear up some "myths" right at the beginning.

We are basically clear about the finances, so we should aim for the path to an independent finance broker. Are there any recommendations or things to watch out for? Because there are certainly some bad apples there too, and they can tell people like us almost anything.

Here as well, you have to have a "good feeling" about the matter. Your questions, even if you repeat one for the 20th time perhaps, should be explained patiently by the financial advisor as he has not yet achieved his goal—to fully advise you regarding that question. Remember: Sender => Receiver.

Yes, there are bad apples in this field too; one recently took a hit and that is a good thing! The husband of a well-known talk show host started a small MLM insurance sales/pressure group and today boasts that "his company checks the finances of potential customers for economic viability." In total nothing has changed because the advice—as it could hardly be otherwise—focuses on the insurer who pays best. Thus, the word "independent" gradually gets a sour aftertaste.

Then there are so-called financing brokers who—similar to real estate agents—receive their commission both from the client and from the bank offered… and a lot of other colorful "advisors."

It is important that you find a truly "independent" financing broker. Independent means that every income situation requires a different approach. One has savings, another may have to sell their apartment, another has a job that involves different types of billing, another has so many children that other subsidies apply, and so on. Financing should therefore always be tailored to the personal situation; the last decimal point of interest is mostly irrelevant because what counts is the monthly burden and how the goal—debt freedom—can be reached. It goes without saying that there should still be enough leeway for repairs, purchases—short for quality of life; after all, nobody should want to become a slave to their own home.

If unexpectedly you do not find anything or the search becomes more difficult, I can give you an address in Krefeld where you will get independent advice. And NO, I do not receive any commission.

Otherwise, we read a lot here, but there are just so many impressions that you don’t know what should interest you from the beginning and what might become important later.

This is just the case at the beginning and totally normal. Gradually, the information will come together into a picture and you will be able to assess it on your own—through reading and understanding.

Kind regards

So... not that you think all the information has overwhelmed us, but we are diligently reading along here.

A brief note on the independent financing broker... after a quick Google search, we have now found someone in Düsseldorf, but you are also welcome to give us your known address @Bauexperte

Yesterday, we sat down with our good friend Excel and listed all the costs incurred throughout the year, broken down everything necessary by month, and after deducting the rent, I personally believe that it is currently not feasible.

It is rightly said that the current interest situation seems very favorable, but what good is that if you do not have the necessary capital and other prerequisites to take advantage of it?!? So, in the current situation, with the certainty that no big salary jumps are to be expected for the time being, I suspect that all this will be postponed indefinitely.

We will now try to accumulate money as quickly and as much as possible. Our calculations already give us hope regarding saving. Nevertheless, purely for informational reasons, we will have one or the other conversation with the appropriate experts just to broaden our horizons. Logically, we will also keep reading here until our heads smoke.

And regarding the procedure with the plot of land. We are not fooling ourselves there either @Micha. I almost consider the dream house on the dream plot a fairy tale. Although we felt relatively close to both over the weekend ^^

But thanks for the thought process that maybe the plot should be sorted out first... Do you then automatically get told what you are allowed to build and what you are not, or does that only happen upon your own inquiry or then on inquiry by the house building company?

And then another quite different question came up, purely for information. What kind of monthly fixed costs can a homeowner actually expect? I don’t mean an amount now, but what kind of insurances and what else do you have “hanging on your leg”?

Have a nice evening everyone