Hello everyone,
an update at this point on our construction project.
The planning has been completed for some time and the building application has been approved. The planned start of construction is January 4, 2021, beginning with earthworks for the basement.
Maybe interesting for some, how our process went:
April/May 2020: Found the plot and started the banking process. The challenge here was that it involved two properties (1x existing property to another party + 1x plot for us).
June 2020: Completion of the banking process and agreement with the buyer and signing of the notarized purchase contract. We took out a variable loan at 1.40% for 3 years, as the house planning was still pending and we had no clear idea of the budget.
The challenge after signing was the real division, as this apparently had not yet been executed and neither the seller nor we knew about it. This led to some administrative effort, as we received different information on who was responsible for the division: building authority, district building authority, land management office, etc.
July/August: Further intensive house planning with submission of the building application in mid-August. Our architect said that the building authority has up to three months processing time and this was almost fully utilized in the end. In parallel, we already started (with the architect) to tender the trades (including shell construction including basement, plumbing, heating, roof, carpentry, etc.) to avoid losing time and to be able to start promptly. Clearly, we bore the risk that the building authority would reject or request changes, but our architect gave us a good feeling, among other things based on decades of experience.
September-November: Various get-to-know appointments with the shell builder, plumber, electrician, structural engineer, and second architect (only for construction management). In parallel, we visited various kitchen studios, a bathroom exhibition, reviewed and evaluated floor coverings, and visited a tile studio. Always with the aim of not losing time and advancing as many decisions as possible. Also, planning your dream house is fun.
Early November: Building permit arrives and construction start date set for January 4. Obtaining further offers for windows through the architect (OMG), discussion with the electrician about what smart home actually is/can do and what makes sense for us (in the end, nothing, rather the use of conventional solutions). And finally my favorite topic: budget planning, calculation, building buffers, and playing with interest rates.
Mid-November: Start of bank talks to finance the entire project (repayment of variable financing + new single-family house). So far a very relaxed process since the property and especially credit documents were immediately available.
Financing (for those interested): Financing requirement of 780,000 + 70,000 equity. We decided on 20 years at 1.25% effective for 750,000 and 30,000 cap loan at 1.45% over 3 years. The cap loan is a variable financing and ultimately our buffer (despite generous planning), which can be repaid immediately if not used. In total, a monthly burden of 2,500 with planning security for 20 years including 5% special repayment annually.
So far, everything is going according to plan and apart from minor issues, we are quite satisfied with the process. This is largely due to our architect who is doing a great job, always reachable, gives us open feedback on ideas and never tries to sell us the most expensive option.
Lessons learned:
- Early meetings with the most important trades – builds trust and you always have a contact person (the electrician took over 1 hour twice before contract award and explained everything to us personally. He prepared a comprehensive smart home offer for roller shutters, underfloor heating, and lighting, and when we were surprised by the price, we made a needs assessment and ultimately found sensible alternatives – for us, smart home is ultimately a gimmick)
- Plan budget from the start and see how it goes, always include buffers everywhere. For us, earth excavation and trench shoring were about 20k more expensive than planned due to storage costs and direct construction next to the sidewalk.
- Clearly tell all trades what you want and read offers carefully.
- Separate awarding of trades (with architect) is not rocket science and also not such a huge effort. In the end, you read offers and then talk with the architect/provider. The advantage is that you can start exchanging ideas early and always get new ideas.
- Consider what is really important to you: Is it the 31,000 euros just for the equipment of 2 bathrooms + 1 WC (ceramics, shower, washbasins, fittings) or rather a high-quality kitchen, which exceeds the budget but which you are convinced of?
That was a long text and I’ll add a few pictures of the floor plans again.
