Evaluation of Construction Project / Credit Offer

The personal contributions will be valued at around €30,000-40,000 and additionally there will be items (outdoor facilities etc.) of about the same amount.

So, equity capital of €100,000, recognized by the bank possibly €60,000-70,000.

I would approach the first section of personal contributions as follows: 3 weeks of vacation = 23 days for the ground floor, to be precise: tiling floors, painting walls, and possibly installing interior doors. If I only consider the weekdays (=15 days) and work 8 hours on each day, that would be 120 hours. My wife would contribute a similar number of hours here, additionally I can occasionally count on free help from relatives and acquaintances.

Does this fit with my generous calculation:
2 persons * 2 periods * 3 weeks * 50 hrs/week = 600 hrs plus an estimated additional 600 hrs over time plus helper hours ==> total of 1200 hours of personal contribution, which is already a very generous estimate.

Since it is usually said that 2 "layman" helper hours replace about 1 craftsman hour, that would be

[*]€40,000 / 600 hrs an approach of 600 craftsman hours saved at €66/hr each
[*]the remaining €60,000 equity capital is presumably brought in as items etc., apparently what the bank recognizes .. or how? And where does the money for the materials come from?

I think this needs to be laid out more precisely again. To me, it certainly does not seem plausible as it is.

Does this roughly fit my generous calculation:
2 persons * 2 periods * 3 weeks * 50 hrs/week = 600 hrs plus estimated another 600 hrs over time plus helper hours ==> total therefore 1200 hrs of own work, which is already very generously estimated.

Since it is usually said that 2 "layman" helper hours replace about 1 craftsman hour, it would be

[*]40,000 euros / 600 hrs an approach of 600 omitted craftsman hours at 66 euros/hr each
[*]the remaining 60,000 equity capital are supposed to be contributed items, etc., apparently what the bank recognizes ... or how? And where does the money for the materials come from?

I think this needs to be outlined more precisely. In any case, it does not seem plausible to me as it is.

We have broken down the own work as follows:

- 20,000 euros for: laying floor coverings (tiles), working on walls, wallpapering, painting, as well as installing interior doors
- 10,000 euros for landscaping (driveway, paths, terrace, garden)

The 2x 600 hours shown above would be for the first area, i.e. for own work worth 20,000 euros.

The remaining 10,000 euros (landscaping) we will carry out in a later period and do not want to put any time pressure on ourselves for this; if it takes longer, so be it.

In addition, we are bringing 30,000 euros cash as equity capital = a total of 60,000 euros, where we anticipate few problems regarding bank recognition.

According to information from a prefabricated house seller, 30,000 euros instead of 20,000 euros would also be possible for the first block, which is usually recognized by banks; then the total equity capital would be 70,000 euros.

The rest will not be recognized by banks, so for example, in the meantime, we will still save money and invest this in the landscaping (provided it is not needed elsewhere for the house construction).
Additionally, we are contributing a very expensive grill hut, which currently stands at another location but will be moved; the pure material price of the wood and especially the grill equipment was around 15,000 euros three years ago.

Sorry, but now it’s getting strange. A barbecue hut as equity...

Sorry, but now it's getting bizarre. A barbecue hut as equity...

Now it really gets bizarre... It clearly states that this of course is not recognized by any bank, but by definition it is nothing other than equity. We want a barbecue hut, it already exists, so these costs do not arise in our project. Not decisive for the financing itself, but since the question came up about what "items" we contribute, it was mentioned (and it is clearly distinguished as deductible equity).

Financing requirement: 500,000 Euros

Item: 100,000 Euros for land
Item: 400,000 Euros for house and all possible ancillary services:

Regarding the offer:
Prefabricated house, as said 186 sqm, 2 full floors, hip roof, KFW40+, electric aluminum shutters, fireplace in the living room (+7.6k Euros), as incidental costs we have:
- Earthworks 20k Euros (land is flat)
- Kitchen 25k Euros
- Including floor slab
- Connection costs 8k Euros (agreed with the municipality)
- Flooring at 50 Euros per sqm, we lay it ourselves
- Bathroom ceramics 12k Euros
- Upgrade front door 3k Euros
- Upgrade stairs 12k Euros
- Construction electricity, water, toilet, etc. 3k Euros
- Wall paint 3k Euros
- Wall tiles 3k Euros
- Rest is included in the offer

Have you ever read ? Attention: Please note that the data are partly up to 6 years old, i.e., the type of cost still exists, but the costs have often increased considerably. See also recently on Spiegel-Online. This has also been reported here in the forum several times, namely rising costs for excavation/removal. Or according to soil report then often rising costs for the floor slab, which is only included in the house price up to a certain excavation depth and after that subject to extra charges.

Also connection costs ... Municipality is one thing, but what about electricity, communication service providers etc., that is usually not covered by the municipality.

Kitchen is actually not something that belongs in the usual financing.

And what is always gladly forgotten in self-performance, you need the appropriate equipment and the right tools.

For floors, often only the price per sqm is looked at, you also need skirting boards, separating strips, adhesive material, etc.

400,000 euros for the house and all kinds of additional services: Have you ever read ? Attention: Keep in mind that the data is partly up to 6 years old, i.e., the cost type still exists, but the costs have often increased considerably. See also recently on Spiegel-Online. However, this has also been reported several times here in the forum, namely rising costs for earthworks/excavation removal. Also, according to soil reports, often rising costs for the foundation slab, which is only included in the house price up to a certain excavation height and is subject to additional charges thereafter. Also connection costs... the municipality is one thing, but what about electricity, communication service providers, etc., which are usually not covered by the municipality. The kitchen is actually not something that belongs in the usual financing. And what is always gladly forgotten with personal contributions, you need the right equipment and the right tools. With floors, only the price per square meter is often seen, but you need baseboards, divider strips, adhesive material, etc.

Yes, I have already read this through. I think the additional construction costs are estimated relatively generously in our case but were not listed completely above, only exemplarily. Connection costs: Here we already have very concrete figures, included are: water, wastewater, electricity, telecom, cable connection (but probably only telecom or cable connection besides, still included both for now). Despite everything, we have included the kitchen with 25,000 euros. Suitable tools are fully available. For the floors, we assumed €50 per sqm; in the current preliminary selection, no flooring (we will use almost exclusively tiles) costs more than €40 per sqm, on average it’s about €35. The higher calculation takes into account waste/leftover material and all additional costs such as baseboards, adhesive material, etc.