Construction Cost Planning - Once Again...

Hello everyone,

I have been reading here passively for a long time, and now I would like to become a more active user.

First of all, a little about me.

I am a young man (26 years old) from NRW, happily working as a laboratory technician.
Currently, I am renting with my partner in a beautiful pilgrimage site.

Now to my question, or rather my plan:

My partner and I are currently thinking about building a house. So far so good. Many people do that ;-D
We have already spoken with several companies, both the huge nationwide ones (not so impressed) and some smaller ones that were more our style.

The basis is a small plot of land for purchase in the Warendorf district. The size is 372 sqm and the fully developed cost should be 64,000€.

We imagine a small cute little house. That means about 115-120 sqm on a slab foundation. Our demands are quite modest, but of course, it shouldn’t be junk.
One of the providers quoted me about 1,200-1,300€ per sqm. I think that’s a reasonable value. Flooring and painting of course ourselves. Just like the garden, paving, and carport.

Our conditions:

Net income: 3,600€
Equity: 20,000 (I know, not much)
Plot s.o: 64,000€

Now the plan.

We would like to manage with 270,000€. 160,000€ for the house + 64,000€ for the plot + 46,000€ for incidental costs and the rest.
We want to finance this amount completely. But first, include our equity, yet still finance it. That was the plan of a financing advisor.

Is that realistic? Or are we total dreamers?

A rate of 1,100€ wouldn’t be a problem. After deducting the rate and 300€ for incidental costs, we'd still have 600€ left for fun and a bit of saving.
Both of us receive a secured 13th salary; given the current situation, it's actually 14-15 salaries each. We have of course completely excluded these from the calculation.

We are aware that we will have to pay off for a long time and that it will be expensive, but it’s not entirely unrealistic, right? And we are still young. The whole thing should be fixed for a minimum of 20 years, and we will diligently make extra payments whenever possible.

Yes, that’s it for now. I look forward to constructive opinions.

Oh yes, to complete everything.

Here is my incidental costs plan:

Notary: 949
Real estate transfer tax: 3,162
Gas connection: 1,749
Water connection: 1,573
Electricity connection: approx. 2,000
Telecom connection: approx. 700
Surveying: approx. 2,000
Land registry: approx. 400
Building permits: approx. 2,000
Construction power: approx. 2,000
Reserve earthworks: approx. 5,000
Fees for cadastre office, chimney, etc.: approx. 1,000

Flooring/Painting: approx. 7,000
Moving: approx. 2,000
Paving: approx. 2,500
Garden: approx. 2,500
Fence: approx. 1,500
Carport: approx. 3,000
Miscellaneous: 10,000

External construction supervision: approx. 2,000
Contract review: 450

So, that really is it now.

Best regards

Is this realistic? Or are we total dreamers?

At first glance, that sounds very reasonable. But you should think about some aspects, if you haven’t already. Are you planning to have children? Can you still afford the payments with one salary? And does the house price fit, or what is still missing from the offered house price to complete the house? (Check the provider thoroughly) Otherwise, it really looks like you’re trying to play it safe and take things slowly.... Have you discussed your plan with your family yet? I often experience with friends and ourselves that parents often already factor in and have capital ready (early inheritance).

You are still young, planning children? Then the financial situation looks completely different! As such, the numbers mentioned should work, but you better consult a professional (independent financial advisor). I find floors and painting a bit tight, unless you do everything yourself or use laminate everywhere? Paving/garden is also a bit tight. I only got 11,000 net as the first offer for 35m² terrace and driveway!

Hey,

That was quick. Thanks for your responses.

So regarding inheritance in the family, there’s really nothing to gain. So unfortunately, that won’t work.
And the dear house price. We hope that we can find something suitable for 160,000. Otherwise, the plan will have to be reconsidered.

I’ll do the flooring and painting completely myself. Probably tiling as well. But for now, I assume I’ll leave that in the house price.

Paving and gardening will be done by my buddy. Only material and rental costs apply there. Plus enough beer!!

Earthworks can be done by my girlfriend’s uncle (civil engineering company). But that will at most only make it cheaper. So I’ll leave that out for now as well.

And now the kids question. For me, the big unknown. I guess that will come in about 5-6 years. I just think that in the first year of parental leave, we’ll make fewer special repayments, and we’ll reduce our Riester contributions a bit. Together we pay 300€ into Riester. And then I hope everything will work out. But of course, if we both become unemployed or something, then it’s lost anyway.
Disability insurance, topping up sick pay insurance is secured. Risk life insurance when the time comes, of course as well.

What value can I assume for monthly additional costs incl. reserves
??

I’m already glad that it’s not complete nonsense that I’m thinking up.

If you remember any major additional costs.. send them my way.

Regards

Oh dear, the evil R-word.... I am personally not convinced by it. With some own effort, you can save quite a bit, but it is often not as much as you first think: sometimes you need special tools, and often you cannot buy the material at craftsman prices.

So I would suggest to you, get concrete offers, don’t let yourself be rushed or pressured by promotional deadlines, and get financial advice from a professional. Also regarding your Riester stuff, you should have someone look at it who does not work in the interest of the bank. In my opinion, such a Riester contract is completely useless, and only becomes profitable if you really live to be 85 or older... there are many articles about it online.
But I’m just an amateur... so let the pro handle it.

With r-word you mean Riester?? Well, I just think you have to die some kind of death, right? When I see the whole retirement provision madness, I think. The choice is only between the plague and cholera. But everything is better than doing nothing. But I think this is the wrong forum anyway

And about the own contribution. I agree with you. I think that is greatly overestimated. How am I supposed to provide €20,000 own contribution. That’s hundreds of hours.. I reckon more like maybe €5,000. But I’ll leave all that out of my calculation for now. If it gets cheaper, probably no one will complain. at least not me.