How Much Do You Have to Earn to Build a House? We Calculate the Cost of Building the Most Popular Type of Building

How much do you need to earn to build yourself in 2024? The Extradom.pl service has prepared an estimate, for which sample data was used regarding a typical Polish family, its income and the house it will need.

– The most common family model in Poland is currently two adults with one child. This means that they need a rather small house with an area of ​​about 100 m², consisting of a living room, 2 or 3 rooms, a kitchen, a bathroom, a utility room and a toilet. I think it is no coincidence that such projects are the most popular on our market – says the expert from Extradom.pl.

How much does it cost to build a 100 m² house to developer standard?

The answer to the price of the entire investment depends on the complexity of the house, its structure and the selected construction technology. However, it can be assumed that in the case of a simple house, it will be an amount in the range of PLN 500,000 to PLN 600,000. Of course, the price will also depend on the region in which we are building the house – in the Lubuskie province it will be definitely cheaper than in Warsaw.

– To the costs of the house itself, we must add the cost of the plot, which, depending on the location, ranges from several dozen to several hundred złoty. We are of course talking about locations outside the centers of large cities – there, prices from the perspective of an ordinary Joe have long been abstract – notes the Extradom.pl expert.

Returning to construction costs – it is worth noting the assumptions of the Safe Credit 2% program, which could be used last year. The maximum amount of a mortgage loan for a family with a child was PLN 600,000, and the required own contribution was a maximum of PLN 200,000. Interestingly, the amounts mentioned correspond almost exactly to the cost of building a house with an area of ​​​​approximately 100 m² and the price of purchasing the plot of land necessary for its construction. This happened because last year BK2% contributed to a significant increase in real estate prices and a significant unification of the costs of houses and apartments.

We can therefore assume that in order to build a house for a 2+1 family in 2024, we need PLN 600,000 and a plot of land (or its cash equivalent). In both cases, they will constitute our own contribution to the mortgage loan.

Assuming we will use a mortgage, we need to borrow PLN 600,000 for a period of 20-25 years. How much do we have to earn so that our creditworthiness is appropriate for the requirements currently set by banks?

He enumerates Wojciech Rynkowski from Extradom.pl. – I used a mortgage calculator in one of the large Polish banks. With its help, I calculated that in order to receive PLN 600,000 for 25 years, a three-person family should document income in the amount of approximately PLN 11,000 net. Additionally, apart from current living costs, I assumed that other financial obligations of the family (for example, repayment of a car loan) amount to PLN 500 per month. This means that two people with a child can afford to build a 100-meter house using a mortgage, provided that they earn twice the national average.

Of course, there are many ways to reduce construction costs. One of them is personal involvement in the construction of the house, i.e. building it using the so-called economic method. Depending on the degree to which we want and are able to get involved in the work of its construction, we can save from 8% to even 25% of the total amount. In the latter case, however, it will require a huge commitment from us and spending several months on the construction site.

If time is of the essence, it is worth taking an interest in the offer of prefabricated houses, the prices of which also range up to PLN 600,000, and their construction to developer standard takes only a dozen or so weeks.

– It is difficult for me to answer precisely the question of how much you need to earn to build in 2024. It depends on too many variables – the number of family members, our expectations towards the house, other expenses burdening the household budget and our skills and willingness to get involved in the construction. However, it can be assumed that in the case of a 2+1 family, two national averages constitute the amount of earnings at which you can safely plan to build a house with an area of ​​100 m² – sums up the expert from Extradom.pl.

It may seem like 100 m² it’s not much, but it’s definitely more than an average apartment, which in a large city already costs over PLN 10,000 per square meter, while building a house still oscillates below the limit of PLN 6,000. And yet, if we choose a house in the price of an apartment, then as a “bonus” we also get a parking space and a terrace.