Financing new construction project with average income

What does "review application" mean? Are the explanatory contracts signed? Then it is certain, there is nothing to review. Or are you waiting for the contract after the verbal agreement? That usually comes quite quickly...

Review means, I have concluded a contract with a financier who has submitted it under the stated conditions, and the lender is now reviewing whether they will support the project or if it is not feasible for them.

Hi, may I ask what you have included in your ancillary construction costs amounting to €24,400? It seems a bit low to me personally, but maybe you can explain :)

I will go through your list and then write to you what I still have included.

[*]Soil survey - Included in the house price
[*]Construction electricity / construction water (consumption, connection, rental of construction power box) - In my ancillary construction costs or partly in the house price (up to meter installation), €3,200
[*]Land charge and notary - Not included or paid from household account
[*]House connections (telecom, electricity, water, sewage) - In my ancillary construction costs, €13,000
[*]Disposal costs for excavation and landfill - Included in the house price
[*]Insurances (builder's liability, shell fire, construction performance) - In my ancillary construction costs, approx. €3,100
[*]Construction site security (surely included in your price) - Included in the house price
[*]Portable toilet (probably also included) - Included in the house price
[*]Structural engineer, depending on federal state - Not necessary
[*]Surveying (for building application as well as rough and fine staking out) - In the house price or already done
[*]Cadastral survey - In my ancillary construction costs, approx. €1,500
[*]Building permit - In my ancillary construction costs, approx. €1,000
[*]Building supervision - Included in the house price

Instead of building supervision, I have budgeted construction monitoring for e.g. acceptance of the shell construction at about €2,500. We probably won’t be able to manage with that, the intended expert will probably be somewhat more expensive. Also, at acceptance, a TÜV-certified expert is already included in the house price – it just doesn’t feel 100% right when this expert is commissioned by the general contractor :D

I think your sum is much higher just due to disposal costs. According to the report, our soil is not contaminated (Z0), as long as nothing worse than soil class 6 comes to light, I do not expect additional costs here.

If I have forgotten anything, please feel free to get back to me directly – in the end, everyone benefits :)

Checking means that I have closed a contract with a financier who has submitted based on the mentioned conditions, and the lender is now reviewing whether they will support the project or if it is not feasible for them.

I will work through your list and then tell you what is still included for me.

[*]Soil survey - Included in the house price
[*]Construction electricity / water (consumption, connection, rental of construction power box) - In my ancillary building costs or partly included in the house price (up to the installation of the meter), €3,200
[*]Land charge and notary - Not included or paid from the household account
[*]House connections (Telecom, electricity, water, sewage) - In my ancillary building costs, €13,000
[*]Excavation and depot disposal costs - Included in the house price
[*]Insurances (builder’s liability, shell fire, construction performance) - In my ancillary building costs, approx. €3,100
[*]Site security (surely included in your price) - Included in the house price
[*]Portable toilet (probably also included) - Included in the house price
[*]Structural engineer for inspection, depending on the federal state - Not necessary
[*]Surveying (for building application as well as rough and fine staking) - Included in the house price or already done
[*]Cadastral office surveying - In my ancillary building costs, approx. €1,500
[*]Building permit - In my ancillary building costs, approx. €1,000
[*]Building supervision - Included in the house price

Instead of building supervision, I have calculated construction monitoring, e.g. for the acceptance of the shell, at about €2,500. That won’t quite be enough; the intended expert will probably be a bit more expensive. Also, for acceptance, a TÜV-certified expert is already included in the house price – it just doesn’t feel 100% right when this expert is commissioned by the general contractor :D

I think your total is much higher just due to the disposal costs. According to the report, our soil is not contaminated (Z0), and as long as nothing worse than soil class 6 is found, I don’t expect additional costs here.

If I forgot anything, feel free to get back to me directly – in the end, everyone benefits from it :)

I think your calculated costs fit quite well. I have considered a similar amount, but the house connections are significantly cheaper for us (you can ask the providers) and I wouldn’t have set the insurance that high either, but: better too high than too low, so all good :)

Our soil is also not contaminated, but it is questionable whether all the excavation material can be reused on the property for backfilling and landscaping – purely in terms of volume, because quite a lot piles up, judging from our neighbors currently working on their site. It may well be that some of it has to be taken away.
You can think about that if you haven’t already. :)

Oops – I just saw it is included in the house price. Then everything is perfect.

Brief update on the project, we now have the loan agreement and will gladly sign it at the current interest rates.

Conditions:
€481,000 loan
1.74% p.a.
30 years fixed interest
€1,499.12 monthly payment with an initial 2% repayment
10% special repayment per year
3 free repayment changes between 1-8%

Processing time was from 14.02. until today, during which an external appraisal regarding the construction project was also carried out.

Yes, it's basically just above the poverty line here in the parallel universe. :)

Off topic: It seems like we are forming one of the notorious parallel societies here. ;-)

If I were to rent an apartment of about 100 sqm in this region, we would also be at about €1300 warm rent (without garden).

Yes, that's an important point. I do not assume that rents will decrease. Affordable rental apartments in the future I "actually" only see for people with a housing entitlement certificate.

Furniture, lamps, decoration for 4000 is far too tight. But it doesn't all have to be at once :cool:

You can also buy used items.

I'm getting in touch again with a quick question about the construction project. We are in the final stages of the work planning and would like to move an interior wall by about 50cm. According to the general contractor, this costs about €1500 in planning expenses since the structural analysis has already been calculated. However, I have not yet signed any shop drawings; is this the norm? Isn't the structural analysis calculated only at the end of the work planning?

I’m getting back with a quick question about the construction project. We are in the final stages of the working planning and would like to move an interior wall by about 50cm. According to the general contractor, this costs about €1500 in planning effort since the structural engineering has already been calculated. However, I have not yet signed any working plans, is this the norm? Isn’t the structural engineering calculated only at the end of the working planning?

Normally, yes. That’s why moving a wall up to that point shouldn’t actually cause any costs. If moving a wall costs €1,500, what does planning a new window cost then? €10,000?