Cost estimation for construction project and feasibility

Hello everyone,

Thank you first of all for your feedback.

A concrete offer is not yet available, except for the land. In the meantime, we have been to two model house parks and spoken with various providers. The prices for turnkey houses ranged between €230k and €300k, at least within the range we are considering. I know the figure of €2000 per sqm from the forum, but the numbers circulating on the internet around €1400 are probably too optimistic. However, we actually want to build a solid house with an architect. Allegedly, this can be cheaper than a prefabricated house. This is also the reason for the assumption of €1800 per sqm. It should be as described (below) average. We would choose neither bay windows, balconies, expensive tiles or doors nor the premium heating or an extensive home automation system. The focus when building the house is to keep costs low in order to stay within the above-mentioned cost framework. I have heard among colleagues how quickly prices rose there once all the little extras added up. I would consider myself and my better half hopefully disciplined enough to limit the expensive “extras.”

I roughly estimated the €30k for ancillary building costs at 10%, since the real estate transfer tax has already been accounted for, painting and flooring inside the house were included, and the double garage was listed separately. I calculated €5k for the kitchen, €5k for furniture, and all other positions directly related to the construction at €20k. We would then plan the outdoor facilities step by step ourselves, so I completely removed this item from the costs (some money would still be available for this). However, I completely left out the position for the garden landscaper, meaning I would probably still have to add €20k to the ancillary building costs. Thanks for the hint! I take from this that with €525k, so €20k more for ancillary costs and €20k as a buffer for extras, we could realistically carry out the construction project regarding costs.

What about the financing then? The loan amount would then already be €400k, the rate should be similar, which with 1.5% interest only corresponds to 2.5% initial repayment and leads to a residual debt of €230k. Of course, a significant interest rate increase would have a stronger effect there. In addition, the first child might be about to start university, which would probably not reduce expenses. Would you therefore prefer to choose an interest rate lock-in of 20 or 25 years right away?

I don't know where you are building, only partly what you are building, actually know nothing about you and your environment, but go ahead and add another 123,567 euros on top!

Building is currently very, very expensive. You will not manage with the calculation. It will not be possible under 550,000, even if you act very frugally.

Price-wise, these were between €230k and €300k for turnkey, at least within the range we envision.

Which company still includes the painting and floor coverings? And the prices mentioned are base prices. Additional costs always come on top... you automatically end up at €2000/sqm. Well, in Lower Saxony somewhat lower, it might work with 1800/1900.

Allegedly it can be cheaper than a prefabricated house.

No one here is talking about a prefabricated house. Even a general contractor/ general builder builds with an architect and stone on stone, unless it’s a prefabricated house supplier.

I roughly estimated the €30k for ancillary construction costs at 10%, since the real estate transfer tax was already accounted for, painting and floor coverings in the house would be included, and the double garage was listed separately.

has defined very precisely what belongs to the ancillary construction costs. No painting, no flooring, no property tax, no garage.

Items directly related to construction calculated at €20k.

Never. We paid €22,000 in 2013 in Lower Saxony. But 6 years have passed since then, and nothing has become cheaper. By the way, you will have to use 2020 prices.

However, I completely left out the position of the landscaping gardener, meaning I would probably have to add €20k to the ancillary construction costs. Thanks for the hint!

No, landscaping gardener does not count as ancillary construction costs either.
And it is negligent, for example, not to do the splash guard around the house right away. The result is dirty plinths.
Also, you don’t want to have a construction site outdoors for years.
You can save on your double garage.

We are also doing the garden little by little... now in the 5th year.
Nevertheless, funds flowed into the terrace right away, gravel for the driveway, edging, and hedges.
Basic plants including roll-out lawn were around €3,000-5,000.
And every year there must be funds available for further expansions as well.

You have laid a foundation with your research, the first sentence from your OP was But already a bold statement that new construction only costs 10-15%. The construction costs have also been broken down for you. I think you will have to spend around 100k again to put up a fixed solid house. Just ask 1-2 developers active in your region what a solid house costs. Financing would then make life harder. Also the statement Restschuld doesn’t worry you. Why? At your age I would even choose a 20-25 year fixed interest period to take the pressure off

5000 euros for a kitchen, you don’t get that much kitchen or everything is just with doors and Ikea and self-assembly. And even there it is still very tight budgeted. I just calculated a small attic kitchen from Ikea for friends ... small U 120x300x170, 300 in extra depth. No wall cabinets, no tall cabinets, extractor hood provided by the landlord. Including custom countertop from Ikea and delivery without refrigerator 4400.00 euros. Assembly is done by oneself.