Buying land for a house, please advise!

Hello Gool,

as already mentioned, you can roughly estimate 1500€ per sqm. That makes almost 200k € for 130 sqm. We have also had the wish to build a house for 300k including the land. And when a friend told me he was planning with over 400k, we thought, who knows what he wants to put into his house. However, the sobering reality came quickly. If you want around 130 sqm with a heat pump, ventilation system, and a cellar, you very quickly end up in that price range. At this point, an honest warning to you not to fall for an alleged special offer that fits your budget. Because a piece of a house, whether solid, prefabricated, or wooden, always costs at least a certain amount. Bargains like in the summer clearance sale do and will never exist in house construction. Personally, I already have a problem when some providers include extras like heat pumps or similar for free in limited-time promotions.

Under 400000 it won't work, sorry.

The €320,000 is the total budget for house and land. Although we haven’t obtained any prices for the house yet. Therefore, I am already calculating €20,000 as a reserve.

Our calculation is as follows:
Land: €124,500
Notary, taxes, realtor: €12,500
House: €120,000 - €150,000
Basement: €30,000
Outdoor facilities: €15,000 (10% of the construction costs)
Additional construction costs: €31,000 (18% of the construction costs)

Thus, lower limit €333,000 upper limit €363,000
I like the €320,000 much better.
I have not included a garage yet; I still have to check on that.

Then the €50,000 equity is deducted. So at least €270,000 must be financed.

Did I forget anything?

Thanks and regards

Notary, taxes, realtor: €12,500
The court fees for the land register entry are still missing.

Regarding the costs for the house, you’ve already been warned.
130 sqm without a basement for €150,000 will unfortunately be a hole, at best a shell construction. But even then, additional costs will come up.

At €1,500 times 130 sqm, you are already at €195,000. Although this is only a rough estimate, €150,000 (~€1,150 per sqm) is unfortunately too optimistic. If you’re lucky, you might get to €1,400 per sqm and that is still very optimistic.

I also consider the €30,000 for the basement to be ambitious, at least if it is to include living space.

Regarding financing. The €1,700 should also not be fully exploited. Because money should still remain for reserves and additional housing costs.

Even if all this now sounds like a lot and maybe too much. Better to have heard it now. You may also find someone who will give you a price on a note that fits the budget, but that will probably be a money pit. Nobody wants to dissuade you here, just read some topics in the area of construction cost estimation.

In the end, it’s your decision.

Maybe still consider looking for an existing property.

Hi,
still regarding the property: If there have only been garages there so far, there may still be development costs. This mainly includes water, electricity, sewage. After that, telephone / DSL and such.

Can't the property be negotiated down a bit? That’s just extortionate. I would try if there are no other buyers interested. Check the standard land value for this location. It’s usually available somewhere at the city for inspection.

Overall, a very tight budget plan. I estimate that won’t be enough. I would also assume 400K given the property price.

Hi,
still regarding the property: If there were only garages there before, possibly an infrastructure connection will be added. That mainly means water, electricity, sewage. Then also telephone / DSL and such.

At least the internal infrastructure (at the street everything should be there, as the situation is described). Just like with almost every other new construction as well.
Typical ancillary construction costs from €35,000.

Can’t the property be negotiated down a bit? That’s downright usury. I would try if there are no other buyers waiting. Check the standard land value for this location. Usually available somewhere at the city for viewing.

Well, the price per square meter is known to depend on the location.
Here in our area it costs between €270 and €550 per square meter.
And I haven’t even left the town.

But that doesn’t mean one shouldn’t try to negotiate the price.

my experiences with price negotiations: Then the plot goes to the next person in the queue
With us, the price per sqm starts at €300. no upper limit. That’s why we are out in the countryside But that is excluded. However, we thought the same at the beginning until we had most of the numbers on the table.
You will have to calculate around €250,000 for a house of this size, and that without a basement. I even want to claim that you will easily break the €400,000 mark, because where plots are expensive, craftsmen are also expensive. My experience. In our countryside, the offers from craftsmen were ALWAYS 30%-60% lower than from companies in the Karlsruhe area.