First an apartment, then build a house?

  • Erstellt am 2017-07-02 11:17:24

Lanini

2017-07-06 12:30:36
  • #1
Well, of course, you only really know at the end if it actually fits financially. But we are relatively optimistic that it won’t be much more expensive. A certain buffer is already included in the €330,000. We are building with an architect and individual contracts, have the offer from the actually executing company for each trade, all sample selections are done (OK, except for the outdoor facilities, for which a flat rate of €15,000 is planned in the budget, which should cover the most important things). So sanitary, electrical, heating, etc. have also been selected, which are often the main cost drivers... for the trades carried out as self-performance, offers for materials are also available (the architect handled the tenders for this) plus some buffer for unforeseen additional costs for the self-performed work.

The closed shell including the garage is done (including final invoices for the completed trades), currently the rough electrical and sanitary installations are in progress, and so far we are about €4,000 UNDER the architect’s cost estimate (mainly due to discounts from the individual trades). That will surely change, but some buffer is planned in my mentioned amount of €330,000, as is usual. And even if we end up slightly over €330,000, that’s no big deal; we have not financed so tightly and have budgeted additional costs to a certain extent, which have not yet occurred (touch wood).

We considered the self-performance very carefully and fully stand behind it. Drywall construction starts in two weeks, we have professionals with us to help, and it’s also "only" the ceiling on the upper floor, so no drywall walls or similar. Painting, floor coverings (except tiles, which we’re having done), and outdoor facilities are, in my opinion, also not particularly unusual self-performed tasks. And we have the time for it. Since we currently live rent-free (and have no children), a few months longer building time doesn’t matter. Honestly, we are even doing less self-performance than is usual for our region. Because here in the countryside it is not unusual (on the contrary!) that a lot is done in self-performance (sometimes the entire interior finishing). I don’t think you can really compare that to metropolitan areas. The pace here is still a bit different, also when it comes to construction costs, for example, hardly anyone here builds with a general contractor (GU/GÜ) but certainly 95% with architect and individual contracts (or even without an architect managing themselves), because that is significantly cheaper in our region than a GU/GÜ.

This all sounds quite defensive now, but that’s not the intention. We have thought it all through carefully. The costs should fit, and even if it ends up being a bit more than €330,000, that’s not a problem because we have specifically planned a buffer for that. However, we do not expect to exceed €330,000.

I really cannot imagine that it will end up significantly more expensive than planned (±€30,000–40,000) since we have exact offers from the actually executing trades and everything is already selected. If there are major additional costs, they will probably only affect the outdoor facilities because that is the only "trade" for which only a flat rate is planned. But with the estimated €15,000 we should be able to do the most important things, and everything else will come later (or the buffer will be used if it hasn’t been needed by then). I’m afraid the pace here really is a bit different because €330,000 for a house (including land, which is still very reasonable here at about €60/m²!) is a perfectly normal price here and not unusually low.
 

ellaumbrella

2017-07-06 23:05:11
  • #2
Hello!

It's me again.

So, a friend has a house for 300k about 25 km from Hannover, for example, with 160 sqm and a decent garden. The construction year was something like 2000 and the previous residents had fixed everything nicely, but then separated. There was nothing left to do, everything was perfect. That was a good price, but they were really the fastest with the house.

Another friend paid 230k for a small house (120 sqm?) with only a small children's room, but a large garden. However, that is already 70 km from Hannover, but both work there. The house has several basement rooms, which I would do without to have more living space on the main level.

The professional plan is already working out, the only question is when at what point. Because he is in field service and also often in home office due to his position. The plan would also be to move with the company if it happens. For me, it is much harder because there are not as many opportunities for me there as here and I would either become self-employed or work rather little and focus on the family, so just calculate without me. Here I am sort of a good bonus on top.

What we simply struggle with is that the supply here is minimal and extremely expensive. And I just don't know if it's too risky to buy something here for a few years.

Example: Just saw a mid-terrace house for 395k, which is really great (didn't find a single apartment with a terrace). So about 440,000 including additional costs. We would still want to do the kitchen and the flooring, everything else is top. We won't pay that off in 6 years. Then selling would really be a loss. 45,000 additional costs gone, possibly a prepayment penalty as well, how high is that approximately? Okay, but we wouldn't have had 60k cold rent either. But can you do that? Is it certain to be able to sell? Isn't that too heavy for 6 years? And the suggestion to rent it out, the bank won’t agree to taking out another big loan and not having paid off much by then, right? Actually, I would also rather not want to rent out a house.
 

aero2016

2017-07-07 20:36:04
  • #3

That must be some kind of nowhere. I can say for sure that these prices for decent houses in this area are otherwise not representative. For a terraced house in Hannover, you will have to reckon with 350k € or more.
 

ellaumbrella

2017-07-08 14:46:02
  • #4
As I said, 25 km from Hannover, that is completely normal. Nobody buys a house in the city center. And as I said, she was faster than others and also searched a bit, but that's okay.

However, I am not concerned with estimating the exact purchase price beforehand, because we don't have a property yet.

It would be great if I could get answers about the risks of our case or if someone knows about how high prepayment penalties can roughly be.
 

apokolok

2017-07-08 15:18:58
  • #5
Well, building is not the same as buying. A new build is usually significantly more expensive than comparable existing property, especially out in the sticks. So it should be considered with nuance.
 

ypg

2017-07-09 23:52:47
  • #6
VFE depend on the financing amount, the terms at that time as well as at the time of termination, and the years that would still be open.

Best regards, Yvonne
 

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