Not yet read everything. But so much for my land. Incl. house (2 floors) and 450m2 land area = 150k € station in 7 minutes walk to reach, 30 meters behind city border with Berlin. Today's price of land here with house 650k-800k. Change my mind. 😉 But I understand what you mean... For me the house is just a lifestyle decision. The kid can get fresh air any time, I can work in the garden, be tan half the year, no Caribbean, have 5 grills on the patio. Small pool enclosed. For me, just after work a paradise and retreat. But yes... I can understand who sees it differently. But let's be honest... at the price probably everyone would have bought. Also at that time, just luck and the bad luck of others belonged to it (land and house was a distress sale, because of separation). As for the maintenance costs. Yes, you have to take them into account. I am just in the situation. House will be 20 years old in 2 years, so the first measures are already starting. Or even modernizations. Just last year was the entrance area with new security door and blinds also on the upper floor. We just had the roof checked again and had a solar system installed. In two years at the latest, the gas, or then heat pump or block heating plant drann... all things that you have to take into account, but just work if you do it thoughtfully and according to plan.
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@InvestmentPapa thanks for sharing your experience! Sounds like a great price you paid. When did you buy, the post isn't anti-buying at all. Actually, it's a relatively neutral comparison, I think 😅. Currently, however, I would actually not buy in the regions I want. More about that in the next post.
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@DonkeyInvestor 7 years ago. Yes, absolutely. What I have read so far was and is just sober observation. You just have to see what period we are looking at. Who builds now, must really have a strong will and nerves. Friends of ours are also building right now... I say: This will be a mistake. They already know that they will have to do a lot of the work themselves. It's going to be tough, and that's when she's working in the public sector and he's a senior engineer. And yet, they're going to flounder there. Of course, we are still keeping our fingers crossed. Only my wife as BauFi specialist, is there itself very skeptical... and that must already say something. 🙄
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•@InvestmentPapa yes, that was ultimately the reason why I first became more intensively involved with the topic about 6 months ago. Before that, I was sure all my life that I would eventually live in my own property. To be honest, I don't know it any differently from my family. There has each Ü35 min. a property and some also U35 😅. But extremely high prices in combination with increased interest rates have made me think. Intermittently, I was then completely anti-buying, but now at a moderate 'Depends'. If something suitable comes up, I would still buy today (not building at all, that is completely incalculable). But I think it is unrealistic that there will be a suitable offer in the regions I want in the next few years. Would actually not even have to be rational and financially sensible, but the lifestyle should now also not cost incredibly much more 😅.
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@DonkeyInvestor All important points which you address there. Back then, everyone declared me completely insane when I moved into my own house at the age of 29. 😉 Today, we pay as much for all costs (i.e. repayment, food, water, electricity, gas, etc.) as a 4-4.5 room apartment in Berlin would cost us to rent. Simply still crazy. I can understand people's desire to own their own home. But it has also become correspondingly expensive in recent years. Let's see what in 2-3 years the rising interest rates and the situation on the secondary market for real estate then says...
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@InvestmentPapa with 150k purchase price you mean surely without renovation costs and all ancillary purchase costs? Otherwise, a development of over 330% at today's 650k (would mean approx. 47% per year) at the city limits of Berlin sounds very unrealistic, because Munich (city center), for example, has just managed this increase from 2010 to 2022. After a short research I found as average sqm price in Q2 22 approx. 5.1k vs. 4.2k in Q2 20 for Berlin (total) - would be about an increase of 10% per year and thus more realistic.
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•@moonassets No. Wrong. I "bought" my in-laws' house. They got divorced. We therefore "took over" the remaining loan, i.e. paid this as the purchase price. Incidental expenses within the limits, no tax (because purchase among relatives and married). That we "renovated" is the purchase of a new kitchen and some wallpapering. But these are normal costs, which I would have paid if I had moved to Berlin... and yes, it is a dream return.🚀 The land prices have exploded here the last 20 years.
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•@InvestmentPapa then the thing sounds logical :) Lucky with the home I would say 🚀
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•@moonassets Definitely. In the end "bad luck" for the in-laws, because they already paid 15 years (property was empty for 2 years, tax benefits). The house was then just under 10 years old when we took it over. In so far, as written above, slowly begin the first maintenance tasks, or modernizations. 17 years old house, in 2 years at the latest is then heating system on. But that is bearable with the development so far.
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@moonassets I have found an exposé from 2005/2006. Since the property was sold on average for 176,000€, including house construction. Have also again Boris endeavored. The oldest BRW I find, 2010 was at 100€/sqm. Today we are at 380€/sqm. In-laws may have been still so at 60-80€ / sqm.
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•@InvestmentPapa this is of course a completely different twist and should be mentioned. After all, such a scenario is not comparable with normal purchases.
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