kauderwelsch
2017-07-27 10:47:15
- #1
Hello everyone!
After having been here as a reader for a while, I have now decided to actively participate here (with questions! Unfortunately, my expertise is not enough for answers).
Who we are:
A brief introduction: we are a family of six, facing a move due to my husband’s job. It doesn’t have to happen immediately. Currently, my husband commutes, and the pressure is not too high. In the medium term, however, we would like to relocate our main residence closer to the job.
We are not really set on building, but after longer observation of the market, we notice that we either have to rent a dump or spend a horrendous amount of money—or hope for a lucky hit (the real estate market is unfortunately not designed for large families. Almost all offers are poorly laid out / too small. Sometimes they do exist, but due to distance, we are often simply too slow). The same applies to buying houses. Somehow, the market is pretty much fished out.
So we are now considering building as more or less a Plan B and are slowly feeling our way into it. However, we (still!) are complete beginners and don’t have much of a clue. So I’m hoping for answers to many silly questions here.
What we are looking for:
We don’t need luxury, want to plan ahead (the kids will eventually move out), want to be reasonably energy efficient and (if possible) have a clear, straightforward architecture. Specifically, a house without unnecessary frills. Ideally planned as a house with "two living units." Not only because of the double KFW funding bonus (although as a layperson, I don’t really understand that yet and am not sure if KFW loans are really top of the list—probably a topic to think about separately later)—but also so that later, when the kids have left the house, we won’t be stuck in a house that’s too big for just the two of us.
We want to build cheaply, but not cheaply done. Specifically, well thought out about what is really needed, reduced to the essentials, and (in many, but not all (!) areas) preferably with relatively simple fittings. Currently, we live in a (very well laid out!) house with 140 sqm. In our opinion, with considered architecture, it doesn’t have to be much bigger than that.
How expensive will it be?
I keep coming across prices per square meter when it comes to building. Often it is said that you can build for €1100 per sqm with simple fittings, up to €2000 for a house with more upscale fittings (there is, of course, no upper limit). But I wonder: can you really build a decent house for €1500 per sqm? When looking through various prefab house catalogs, that seems way too low to me. But I am very happy to be proven wrong.
Cost calculation:
We don’t want to build recklessly. Primarily, we are currently trying to figure out whether we can afford to build at all. So here’s an example calculation that keeps going through my head for you to look over. Please: where is the flaw in my thinking? What have I overlooked?
House, 150 sqm – €225,000
Plot, fully developed (just picked one randomly—it can be somewhat cheaper, but also much more expensive) – €35,000
Ancillary building costs (according to the forum here) – €40,000
Garden – €10,000 (probably set too low. But definitely an area where we can do a lot ourselves)
Reserve for: something goes wrong / becomes more expensive / whatever – €10,000
Reserve for extra items (in case of doubt a new kitchen or a carport) – €10,000
That adds up to €320,000
Architect costs are not yet included. No idea what that costs.
If I enter this into a financing calculator, it spits out an offer (loan amount minus our equity) 15 years term, 2% effective annual interest rate for about €900.
But besides the KFW thing, there is also the option to get a loan of €125,000 from the Investment and Structural Bank RLP. Term also 15 years at 2.0% or 10 years at 1.6%. Not really cheaper, but special repayments of 10% per year are possible. Interesting for us because in a few years a second income will come in, which we won’t need fully for living expenses (currently one is enough).
I find that insanely cheap and wonder: what have I overlooked? Where is the mistake? If this calculation is even remotely realistic, building a house would be very pleasant to accomplish.
If you also calculate €400 ancillary costs per month, we would pay the same as currently in rent. But with a new build near the job, the daycare fees would disappear (+ €250 per month) and my husband’s travel costs would roughly halve (+ €250). So we would have a surplus of €500, which we could save.
Currently, we live on one income only. Within five years at the latest a second income will come in. When the loan expires, at least two, probably three children will have left the house, so the "granny flat" could be rented out.
Otherwise, I basically wonder how to approach the whole thing sensibly. How do I find someone who will build for the above price (if that is financially feasible. If we want to build, then solidly financed. Surely three vacations per year won’t be possible anymore. But the kids should still be able to continue riding or music lessons). How can I survey the (completely confusing for me) market? Is there a good book on the subject? Or other tips for our first steps?
Many thanks already at this point,
kauderwelsch (that’s how the building topic feels to me right now)
After having been here as a reader for a while, I have now decided to actively participate here (with questions! Unfortunately, my expertise is not enough for answers).
Who we are:
A brief introduction: we are a family of six, facing a move due to my husband’s job. It doesn’t have to happen immediately. Currently, my husband commutes, and the pressure is not too high. In the medium term, however, we would like to relocate our main residence closer to the job.
We are not really set on building, but after longer observation of the market, we notice that we either have to rent a dump or spend a horrendous amount of money—or hope for a lucky hit (the real estate market is unfortunately not designed for large families. Almost all offers are poorly laid out / too small. Sometimes they do exist, but due to distance, we are often simply too slow). The same applies to buying houses. Somehow, the market is pretty much fished out.
So we are now considering building as more or less a Plan B and are slowly feeling our way into it. However, we (still!) are complete beginners and don’t have much of a clue. So I’m hoping for answers to many silly questions here.
What we are looking for:
We don’t need luxury, want to plan ahead (the kids will eventually move out), want to be reasonably energy efficient and (if possible) have a clear, straightforward architecture. Specifically, a house without unnecessary frills. Ideally planned as a house with "two living units." Not only because of the double KFW funding bonus (although as a layperson, I don’t really understand that yet and am not sure if KFW loans are really top of the list—probably a topic to think about separately later)—but also so that later, when the kids have left the house, we won’t be stuck in a house that’s too big for just the two of us.
We want to build cheaply, but not cheaply done. Specifically, well thought out about what is really needed, reduced to the essentials, and (in many, but not all (!) areas) preferably with relatively simple fittings. Currently, we live in a (very well laid out!) house with 140 sqm. In our opinion, with considered architecture, it doesn’t have to be much bigger than that.
How expensive will it be?
I keep coming across prices per square meter when it comes to building. Often it is said that you can build for €1100 per sqm with simple fittings, up to €2000 for a house with more upscale fittings (there is, of course, no upper limit). But I wonder: can you really build a decent house for €1500 per sqm? When looking through various prefab house catalogs, that seems way too low to me. But I am very happy to be proven wrong.
Cost calculation:
We don’t want to build recklessly. Primarily, we are currently trying to figure out whether we can afford to build at all. So here’s an example calculation that keeps going through my head for you to look over. Please: where is the flaw in my thinking? What have I overlooked?
House, 150 sqm – €225,000
Plot, fully developed (just picked one randomly—it can be somewhat cheaper, but also much more expensive) – €35,000
Ancillary building costs (according to the forum here) – €40,000
Garden – €10,000 (probably set too low. But definitely an area where we can do a lot ourselves)
Reserve for: something goes wrong / becomes more expensive / whatever – €10,000
Reserve for extra items (in case of doubt a new kitchen or a carport) – €10,000
That adds up to €320,000
Architect costs are not yet included. No idea what that costs.
If I enter this into a financing calculator, it spits out an offer (loan amount minus our equity) 15 years term, 2% effective annual interest rate for about €900.
But besides the KFW thing, there is also the option to get a loan of €125,000 from the Investment and Structural Bank RLP. Term also 15 years at 2.0% or 10 years at 1.6%. Not really cheaper, but special repayments of 10% per year are possible. Interesting for us because in a few years a second income will come in, which we won’t need fully for living expenses (currently one is enough).
I find that insanely cheap and wonder: what have I overlooked? Where is the mistake? If this calculation is even remotely realistic, building a house would be very pleasant to accomplish.
If you also calculate €400 ancillary costs per month, we would pay the same as currently in rent. But with a new build near the job, the daycare fees would disappear (+ €250 per month) and my husband’s travel costs would roughly halve (+ €250). So we would have a surplus of €500, which we could save.
Currently, we live on one income only. Within five years at the latest a second income will come in. When the loan expires, at least two, probably three children will have left the house, so the "granny flat" could be rented out.
Otherwise, I basically wonder how to approach the whole thing sensibly. How do I find someone who will build for the above price (if that is financially feasible. If we want to build, then solidly financed. Surely three vacations per year won’t be possible anymore. But the kids should still be able to continue riding or music lessons). How can I survey the (completely confusing for me) market? Is there a good book on the subject? Or other tips for our first steps?
Many thanks already at this point,
kauderwelsch (that’s how the building topic feels to me right now)