Evaluation of Construction Project / Credit Offer

Hey just a quick info from me so that it doesn't surprise you. In this case, we also changed our tax classes because my wife went to part-time. We now have to pay retroactively and make advance payments for the coming years.

Hello,

thank you very much for the well-intentioned hint. You were probably poorly advised tax-wise or your personal income situation (type of income) led to this circumstance. I am a tax advisor myself and have carried out such optimization several times for acquaintances.

By the way, in the first step, it's not about tax optimization itself, but rather about optimizing parental allowance.

I structured it a bit differently, but currently our calculation looks as follows:

Repayment rate house: €1,500 per month
Additional costs house: €555 per month (includes a maintenance reserve of €140 per month)

That sounds quite fitting for your income!

However, combined with:

The financing requirement would therefore be €500,000.

Depending on the interest rate, 33-36 years term.
That would be too long for me.

Why are you so resistant to scaling back a bit?
For example, really KFW55 instead of 40+? Or 10m² less?
Both could easily save around €20,000 and thus reduce the term by 2 years.

Basically, you will have to plan very carefully during construction because there is simply no buffer.

That sounds quite fitting for your income!

However, it means in combination with:

Depending on the interest rate, 33-36 years term.
That would be too long for me.

Why are you so hesitant about scaling back a bit?
For example, really KFW55 instead of 40+? Or 10m² less?
Both could easily save around €20,000 and thus shorten the term by 2 years.

Basically, you will have to plan very carefully during construction because there is simply no buffer.

That's correct, the term is theoretically too long for us as well, but in reality, as described, it won't be that long due to inheritance etc.

We have indeed considered everything already; regarding KFW, we actually see the new 40+ subsidy as mandatory for us. The combination of the higher subsidy with the monthly savings will pay off in the long run, we are quite certain about that.

10 m² less would indeed be worth considering, but that will also depend on which provider we ultimately choose. With prefab house manufacturers, reducing the floor plan often does not significantly affect the price, as we have found (though an increase does, of course).

Currently, our offer situation looks as follows (each + €100,000 for the land):

Prefab house manufacturer 1: 186 m² for €407,000 fully calculated as a KFW 40+ house
Prefab house manufacturer 2: 195 m² for €457,000 fully calculated as a KFW 40+ house
Prefab house manufacturer 3: 181 m² for €417,000 fully calculated as a KFW 40+ house (currently still with geothermal heat pump and deep drilling here, this may decrease somewhat with a different heating choice)

A promising custom-designed offer in solid construction is still outstanding; we will receive it tomorrow.

We have considered all conceivable costs and also included some buffers for unforeseen expenses.

The earthworks are calculated at €20,000; the plot is completely level. Our future neighbor (right next door) has already started and paid under €10,000 for the earthworks. Of course, it could look a bit different just a few meters further, but the probability is not very high.

The kitchen is calculated at €25,000; in the meantime, we have seen quite a few options. The difference in workmanship between the absolute top class (Zeyko, Team7, etc.) and the premium manufacturers is not as big as expected, but the price sure is. We also think we will come in well under budget here.

If we decide on a mix of tiles and laminate instead of fully tiled floors, this would also reduce the price again, as we have a source for laminate and can obtain it very cheaply.

This pattern runs through various items.

Well then, everything is perfect anyway! Sign and let's go, you're just wasting your time here.

completely calculated through […] We have taken into account every conceivable cost […]

I would always be cautious there. You never think of everything, and many decisions have to be made later. We certainly overdid it a bit with more than 20% extra for extras and nice things, but never expect that a house price agreed at the beginning will still fit at the end of the project.

The earthworks are budgeted at €20k, the plot completely level. Our future neighbor (right next door) has already started and paid under €10k for the earthworks. Of course, a few meters further on it could look a bit different, but the probability is not very high.

For a level plot, I consider that absolutely realistic. We were also under €10k for earthworks on a 16x9m foundation slab.

The kitchen is budgeted at €25k; in the meantime, we have looked at quite a few options. The difference in workmanship between the absolute top class (Zeyko, Team7, etc.) and premium manufacturers is not as big as thought, but the price certainly is. We also think we will come in well under budget here.

But you won’t get the absolute top class for €25k either if a single kitchen row is not enough for you… you can also easily spend that amount on a simpler manufacturer. Of course, it can all be done cheaper, but the fact that you already mention Team 7 & Co. at least makes me suspect that you might stretch your budget.

I would always be cautious there. You never think of everything and many decisions have to be made later. We definitely overdid it a bit with over 20% more for extras and nice things, but never expect that a house price agreed at the beginning will still fit at the end of the project.

What were the main cost drivers for you for this quite high "surcharge" compared to the original house price?