Expired fixed price guarantee - additional costs

That is exactly what is frustrating about the whole thing. That we don’t even have a rough idea of what we are dealing with now. That raises the question for me of how we can even build like this without knowing where we will end up price-wise. The current prices for the same house have now become about €40,000 more expensive, as I can roughly gather from the website – does that necessarily mean that we have to prepare for this amount as well?

These are, as always, mistakes caused by overconfidence and lack of preparation. Just because it’s not your fault doesn’t mean you couldn’t have anticipated it. As silly as it sounds... Loan taken out too early, resulting in commitment interest payments. Development not waited for. Price guarantee lost. Payment plan not understood, resulting in overpayment. General contractor not carefully chosen, resulting in shoddy construction or delays. etc. For such things, you simply pay your dues. If you think further about it, you are not only paying extra on top of the base price, but you will also pay more during the customization due to increased procurement costs.

So I am also currently building and had a construction delay of about 3 months due to the harsh winter, the building permit has been available since December...

Regarding the commitment interest, I can say that the banks are very accommodating under the current conditions and are also extending the time. My banker only required a brief explanation that delivery times are currently extending to unpredictable periods. (For example, also the unclear production/delivery of the roof truss). So as a tip, just contact the respective bank advisor. I think they can enable a lot. I don’t know if it’s a bonus because I am already servicing the loan, but it apparently affects a large number of current borrowers.

Not necessarily. But the direction can be right. Where is the problem if it becomes €40,000 more expensive? That’s €100 more per month in installments or simply scaling back special requests. If a plan is that tight, building a house might not be the right choice.

Well, who parts so easily and cheerfully with such an amount? I don't think this is a club of millionaires, even if it sometimes seems that way with one or another.

So I am also currently building and had a construction delay of about 3 months due to the harsh winter; the building permit has already been in place since December... Regarding the provision interest, I can say that the banks are very accommodating under the current conditions and also extend the period. My banker only needed a brief explanation that delivery times are currently extending to unplannable periods (e.g., also the unclear manufacturing/delivery of the roof truss). So here’s a tip: just contact the respective bank advisor. I think they can enable quite a bit. I don’t know if it’s a bonus because I’m already servicing the loan, but it probably affects a lot of current borrowers.

Thanks for the tip, we have set aside a certain amount as a buffer for the interest, but this will probably all go into the additional costs anyway. I will talk to the bank about it.

I find this statement a bit harshly phrased.

No. Comes from a banker from life. Such a thing MUST always be included. No ifs or buts. With my clients (commercial real estate financing) we also always calculate a 10% buffer on the pure construction costs. Even with general contractor contracts. Everyone should be happy who doesn't need it. But it must always be included and affordable. Otherwise the project is simply the wrong one. Harsh, but experience shows the consequences.

Alright, I can understand it a bit that way. For my part, I have signed a contract with a flat rate and therefore only built in a smaller buffer for e.g. outdoor facilities. But as I said, I don't think every contract allows for a quick 40k with a privately concluded loan agreement?

Now, who parts so easily and happily with such an amount? I don't think this is a club of millionaires, even if it sometimes seems that way with one or the other.

Gladly not. I’m not saying that either. But if it is necessary, it has to be included and should have been accounted for in the cost calculation beforehand. And once again. Whoever has problems managing such an increase has the wrong project. These are the excesses of the current interest rate situation, where everyone thinks they can build now. Don’t take it as a personal attack.