We are beginning to plan the construction of our house

2016-04-13 15:54:34

Can you give instructions on how to save up 50k€ by the end of your studies without receiving a single cent from your parents (grandparents)? Doing newspaper deliveries and holiday jobs alone didn’t work for me.

For most? In my extensive and young (25-30 years old) circle of friends, most of them

1. were very surprised when moving into their first apartment at how much time you spend cooking, doing laundry, shopping, etc.

2. were very surprised at their first job after graduation how pleasant it is not to have to study after work, but how little free time you have left after a 40-hour week (e.g. for tax returns, insurance, contract management, etc.)

3. want to enjoy their life (especially through intensive traveling) and hardly want to deal with many (serious) life topics

4. realized with their first child that their free time is completely dictated by the baby and little time is left for former hobbies and friends

It may be that this is coincidentally the case in my circle of friends (maybe it’s also because of the high proportion of academics), but maybe it’s closer to the truth than you want to admit.

I don’t see why the surprise when building your first house about how expensive everything is, how complicated everything is, how intensively you have to deal with everything, how much can go wrong, shouldn’t also be extremely large.

Points 1 to 4 can be managed even if you had different expectations before. It gets more difficult to cope with building a house if you have sold your soul to the bank and the name is signed under the construction contract. The magnitude of a 200-300k€ loan can go as far as destroying your existence. These are levels of responsibility that a young person can quickly be overwhelmed by.

I also wrote that WE saved the 50k. Not me alone. While I was studying, my partner was working. And besides studying, I was also working part-time and we were able to save this amount over several years. Knowing how to budget and not throwing money away on every nonsense has to be practiced/learned, I would say.

And I do not want to deny your points 1-4, because they certainly come very close to reality for many. But it can also be different. We were not surprised how much time cooking/laundry, etc. takes when we moved into our first apartment. Likewise, we also knew that when you bring a child into the world, 100% of the time is devoted to the child and life revolves around the child, not the other way around.

And it’s the same with building a house. If you deal with it intensively and clearly realize the consequences house construction has, then I wonder what speaks against planning/building your own home at a young age?

2016-04-13 16:16:35

Ypg means it more like this: if one has 10% available on average, the difference is 2% repayment earlier versus 8% repayment nowadays. After all, even if the term were longer, one could afford a loan twice as expensive and still have 3% repayment in the same installment...

That is correct, but as already noted earlier, back then the construction prices/land prices were by far lower, plus the homeownership allowance, etc. So neither the loan amount, the total annuity in %, the total annuity as an amount, nor the initial repayment are comparable. The truth lies somewhere in between.

2016-04-13 16:31:22

I only know from my parents that it was harder to finance than it is currently, and that repayment took a long time because the interest burden was high and the principal repayment was small (and in the end, much more interest was paid; today you get more for your money..)

2016-04-13 17:14:12

and in the end you paid a lot more interest, today you get more for your money..)

Statistics say otherwise. Compared to the normal price index, the construction price index has risen much more significantly by far. On top of that comes the development of land prices. So building itself should have become significantly more expensive by far. In return, the favorable development of construction interest rates would have to be offset. However, you would also have to consider the percentage of external capital used, and only then can you say whether it was easier or harder to build in the past.

2016-04-13 17:30:42

Building is more expensive, but you are not building the same house. A large part of the increase in cost comes from the stricter regulations, you are basically forced to build higher quality in certain respects, i.e. it has not only become more expensive, but you also get more value for the higher price.

2016-04-13 17:57:34

That is correct, but as already noted earlier, back then construction prices/land prices were by far lower, plus there was the homeowner grant, etc. So neither the loan amount, the total annuity in %, the total annuity as an amount, nor the initial repayment are comparable. The truth lies somewhere in between.

Wages and salaries were also somewhat lower. I don’t know what my father earned, but when I bought 17 years ago, I had exactly the same amount in DM as I have now in euros. When the house was sold in 2012, it brought as much as I bought it for back then... So it was relatively much/double as expensive. But it’s hard to compare the generation back then with today: living costs were not that high, there was no maxi-cosi that you had to buy, for example I was changed on the kitchen table, and the technological achievements were expensive but also lasted 20 to 30 years. Expectations were not so high. One family, one car, one vacation per year. There was no parenting allowance for the parent who stayed at home. That’s for the West. Nevertheless, I think more people were more satisfied than today.

We are beginning to plan the construction of our house

Spinne

Musketier

Saruss

Musketier

Saruss

ypg