High equity, low income: to build or not?

Hello,

: as mentioned at the beginning, it should be about 120-130 sqm, we can't really afford more with our budget.

Sorry, I missed that.

As a construction layman, I still have a question regarding the construction costs: can/should one already start making initial inquiries with construction companies, even though one doesn't have a plot yet? Or will they laugh at you if you show up without a plot and without a development plan?

Why should anyone laugh?

I rather see a possible problem in that your wish to build a cube might not be allowed by the development plan. Unfortunately, this is not the case in every new development area; that’s why many builders work with staggered floors. Of course, that means you fall in love with an aesthetic and risk having to build a different exterior in the end.

We already have a rough idea of what is allowed to be built there from an information event (2 full floors + flat roof, max height 6.90 m.).

Assuming 120 sqm, the cube in the "turnkey" version is available from EUR 195,000. Unlike the classic construction with a pitched roof, you naturally lose the area of the usable attic; the cube is thus more expensive. But you are not done yet, you still have some painting and flooring work, and surely some extra wishes.

Rhineland regards

One question as a construction layman regarding construction costs: is it possible/should one already start initial inquiries with construction companies even though one does not yet have a plot of land?

One can. We did that too: Honestly, "Good day, we want to build, so and so, but we don't have a plot." Usually, this led to a friendly conversation and a first offer along with construction and service descriptions. The construction companies that also have plots are naturally at an advantage.

I see a possible problem rather in the fact that your desire to build a cube is not permitted by the development plan. Unfortunately, this is not the case in every new development area; that is why many builders work with staggered floors. Of course, this means you might fall in love with a look and possibly risk having to build a different exterior view in the end.

That is not my wish. According to the city or the landowner, there should be a uniform architecture for single-family houses in this development area – and as of last week, it should be 2 floors + flat roof. Whether there will be the possibility to work with staggered floors, I do not know. Until a BPL is created, quite a few things can still change. But the approximate direction has already been set.

If I assume 120 sqm, the cube is available in the "turnkey" variant from EUR 195,000. Compared to the classic construction method with a pitched roof, you naturally lose the usable attic space; the cube is therefore more expensive. But you are still not finished with that – a little painting and flooring, as well as some extra wishes, you surely have as well.

Okay, thanks already for your assessment. Are flat roofs actually more expensive in your experience than other roof types? You read totally different opinions online, also regarding the maintenance intensity of flat roofs.

: then we will try it soon with 1-2 developers. At the end of the month, further information regarding the new development area should follow; hopefully, we will be a bit wiser afterwards and will not go into the discussions completely empty-handed.

I might be able to help you a little with that, I am currently in the planning phase for a new building, according to the development plan the execution must be with a flat roof and 2 full floors. I had contact with various construction companies, but the following statements were more or less always the same:

-setback floor: would have been possible, but is significantly more expensive. On the one hand, the lost area on the upper floor must be compensated over the footprint of the house, on the other hand the sealing with a correspondingly high-quality execution costs quite a bit
-Costs: flat roof is definitely more expensive than a normal gable roof, unfortunately I cannot specify exact amounts but it is not just a few hundred euros. The statements were more in the direction of five-digit amounts

: so you also talked to construction companies without having a plot? How many actually responded to your request? Have you finished building? Did the cost estimate back then correspond to the actual construction costs? Did you have to pay anything for the first offer?

We had the prospect of 2 different plots.
A preferred plot (cheap, next to family, shared use of basement & garages) and one in the new development area (more expensive).
The development plan for both plots was different as well.

For both plots, lotteries were scheduled, so at the time of our first talks with the construction companies it was not yet clear whether we would get one of the two plots at all and if so, which one.

We only approached 3 companies, all prefabricated house providers.
We didn’t get along with 2 of them, partly because it was too uncertain for them whether this would actually happen or if we were just wasting their time.

We then stuck with the 3rd provider.

We signed a construction contract before the plot lotteries took place. However, we were not pressured to do so.
We signed for a relatively inexpensive house in case we got the more expensive plot.
We also had guaranteed in the contract that we could switch to any other house model, size, and floor plan free of charge.

Also fixed were granted cancellation rights:
- If we don’t get the preferred plot (with exact address), then we can withdraw from the contract free of charge, meaning that even with the Plan B plot we could have gotten out of the contract. Only with the preferred plot would we have been bound to this provider.
- Financing does not come through. But that is a standard cancellation right many include. Usually, one removes the reservation even though no financing is secured yet. Otherwise, it takes too long to start the planning phase (a construction contract with cancellation rights is on the “park” position!) and then you quickly end up with commitment interest.

One could also remove the reservations so that the planning phase already begins (of course only possible with a plot), i.e. everything up to the building application.
For that, one would have had to agree to pay about €3,000 for this planning in case of cancellation.

The house is not yet built. It should be ready in spring 2017.
Therefore, I can say little about the house and about planned costs vs. reality.

I had my own cost planning and reflected on it in a long conversation with the sales consultant’s experiences.
Of course, I also researched quite a bit online.

The result of the talks was also a bank folder including information about the house that banks require (e.g. KfW online confirmation, enclosed space, area calculations, sections, floor plans, etc.).
He also helped me a lot with the self-performed work by breaking down what these would cost with them and what portion of that was material and what labor costs we could realistically state as self-performed work.

All free of charge, but of course this took place after signing the construction contract with these cancellation rights.
He certainly wouldn’t have done this completely without obligation.

In February we won the preferred plot in the lottery, bought and paid for it notarized at the beginning of April.
Entry in the land register etc. is still outstanding, of course.

We have withdrawn the reservations (cancellation rights) from the construction contract and thus the planning phase started, a first estimate for house completion is March/April 2017.
Yesterday we were actually supposed to have our planning meeting with the architect of the prefabricated house company – if he hadn’t gotten sick.

Financing is applied for. We expect the credit decision by the end of May; they are currently very busy.

Hello,

I don't know if there will be the possibility to work with stepped roofs.

A stepped roof (SG) can always be realized – regardless of whether gable roofs (SD) or other roof types are prescribed – as long as a SG is not explicitly excluded by the development plan/the associated textual specifications.

In your experience, are flat roofs generally more expensive than other roof models?

Not necessarily; depending on the architecture, a single-family house with SD can be significantly more expensive. But that all also depends on the respective structure of the preferred building partner; so, in general, it cannot be determined.

On the other hand, the SG option is predominantly more expensive. In addition, the building envelope (BF) is often utilized to the utmost, leaving no possibility to enlarge the area on the ground floor. Builders choose this variant – with all its possible restrictions – if they want to avoid roof slopes.

Rhenish greetings