Is the construction project feasible?

Hello everyone,

I have looked at some existing properties in the past few months. Unfortunately, the right one was never among them. So far, I have been reluctant to build myself because there is simply so much endless fuss and hassle to organize around it... (Application for the granting of a construction power connection... WTF?).

But I don’t want to completely close myself off to it, and would like to get your assessment.

Financial situation:

[*]No equity
[*]€1000 per month easily possible
[*]Special repayments €7,500 to €10,000 per year
[*]That leaves €2,000 monthly for living, food, vacation, car, incidental costs...

I believe I can finance €300,000 under these conditions (Please just accept the amount as given. I definitely don’t want to spend more. Maybe it’s some psychological limit).

Desired house:

[*]Passive or low-energy
[*]No basement
[*]Ground floor: living room/kitchen, technical and utility room, toilet, guest room
[*]Upper floor: sleeping, walk-in closet, comfortable bathroom, study
[*]1 garage, 1 carport

So nothing special. There are two of us and there will remain two. In the living room I would like a wood stove that contributes to heating the house. In a prefabricated house from Bien-Zenker I saw something like that. Exhaust air is withdrawn from all rooms and directed outside. Fresh air receives the heat from the exhaust air via a heat exchanger. This supplies all rooms evenly with warmed air. The heat from the stove in the living room is thus distributed to all rooms. Possibly supported by solar collectors. Okay, so that would be important to me: no oil, no gas.

Costs:

[*]Plots here in the area can be had for xx € up to €90,000
[*]I estimate ancillary building costs at €40,000
[*]Exterior work after completion of the construction: €10,000

That leaves €160,000 for the house.

If I take Bien-Zenker as an example now: can I get a prefabricated house for €160,000 in which all floors are already laid, all installations including ventilation/heating are in, the bathroom is finished... in other words turnkey?
Or will they laugh at me in a consultation?

Sorry if this sounds naive to the experienced ones here. But I just have the feeling that this year (at the latest next year) I should benefit from the currently so good interest rates.

Thanks already for any clarification or assessment.

Even though I don’t know how big the house is supposed to be eventually, I would say for sure that your wishes (low-energy/passive house including everything + 1 garage + 1 carport) definitely do not fit the budget of €160,000.

Regarding your financial situation (even if you probably did not want to discuss it) just a few notes:
-If €7,500-10,000 special repayments per year are planned, then why not just increase the installment a little? There should still be enough buffer despite everything. Especially since the cost uncertainty factor "child" is at least ruled out.
-€1,000 installment on €300,000 is already quite tight. It can work, but more would be better.
-Why no equity? (You don’t have to answer us, just think about it) And do you want to take the risk of building without equity? (That’s up to you).
-Make sure to plan a reserve!!!
-Exterior work seems very tight to me, but the range certainly varies...
-No idea how it is with Bien-Zenker: usually paintwork and flooring are not included in the price – carefully check the construction services description!
-The low interest rates are tempting, no question. But I don’t think it makes sense to buy or build a house at all costs. And I fear that some people have overextended themselves or will do so with building a house. That will become apparent in a few years.

Hello,

I believe that with the figures you provided, this will be very ambitious to impossible.

Roughly calculated, you can expect about EUR 500.00 monthly payment per EUR 100,000.00 loan amount.

Another calculation basis is EUR 1,500.00 per square meter of living space WITHOUT floor coverings and painting work. For turnkey, I would rather estimate EUR 1,700.00 per square meter, and with that, I still have not included a high-end but rather a very simple standard.

With prefabricated houses, the foundation slab is often not included either, so that's another substantial amount for you.

Without oil and gas, you are left with pellet or heat pump heating – these are generally not included in the "offers" of most prefab house providers.

A prefabricated garage will cost you depending on the equipment between EUR 8,000.00 and 12,000.00.

A safety buffer of at least EUR 15,000.00 - 20,000.00 should also be planned.

So, either you should adjust your budget and the monthly installment upwards and the special repayment downwards, or rather look for a nice condominium.

Regards,

Dirk

If 7,500-10,000 € special repayments are planned per year, why not just increase the installment at least a little?

Sure, that would be possible. I just thought that in the first few months there might still be costs for furnishing, outdoor facilities, .... that were not included in the calculation and then the monthly budget would become tight.

Why no equity?

That's a perfectly legitimate question. Car bought on credit and lost on the stock market. I am still paying that off until April this year (850 € monthly).
Hence also the idea to buy or build "immediately" now. Our cold rent is 500 €; 850 € will be additionally "available" from May without restricting the current standard of living.

I would rather wait a little longer and save up equity. Banks do not like to finance everything completely. But with your wishes and since there are only two of you, the house does not have to be big. However, there is nothing against starting to think about it now and familiarizing yourself with the subject. First, find a plot of land that you like. Then you can recalculate everything again. Ideally with an external financial service provider.

Phew, all the desired heating technology can cost around 25-30000... maybe better to inform yourself in advance about what a passive house is?!
Then a feel-good bathroom... a stretchable term, but this "want-to-have-that’s-so-great" effect can easily add up to 200000 if you’re not disciplined - and honestly: since I used to speculate on the stock market from time to time to get some adrenaline (although disciplined daily profits of 200€ were enough for me ;)) you have to assume that you’re less so - disciplined. But I don’t want to step on your toes, rather encourage you to take care of yourself.

Bien-Zenker always shows bigger dream houses for the same price: if you get the catalog, you recognize the modular system - unfortunately, only the base price is ever stated. Naked, with the simplest technology.

By the way, we looked for existing properties for two years back then. Don’t give up, it will be there someday :)