Land and ancillary construction costs - Is the budget for house construction realistic?

Hello,

so that I can answer you understandably, I have to put the cart before the horse a little bit.

I know people who would trust themselves to evaluate and select (all craftsmen themselves)

Over the years, I have met many good craftsmen; very few of them can handle tender documents or properly differentiate between their own and work unrelated to their trade.

and I would go through the tender together with a building expert anyway.

That is - no matter whose favor your decision falls in - always a good choice!

I just follow the maxim: Don’t do business with your friends.

Stick to this path!

One must also be honest here: If there is a fixed price (e.g. developer), then savings can only be made on quality if problems/further costs arise during the construction project.
The sub-sub story is mostly such that not the most reasonably priced provider gets the contract, but the cheapest.. And to be cheap, only personnel & material can be saved on. (Machines cost money and are indispensable...)

For a business economist, you have a rather destructive attitude...

Problems in construction – as everywhere else – always arise when many people work on a project. This is sometimes very annoying, but in the vast majority of cases only a little nerve-wracking; exceptions of course confirm the rule here too. It always depends on how the solution looks and is implemented, right? Btw, this is also what differentiates reputable from less reputable providers (to give the common expression for such providers a new term).

We also looked at some developers and their service descriptions – the tenor is: In the sample selection, the lower price is usually assumed (e.g., 20 euros per sqm of tiles), some special editions of bathroom fixtures and/or the minimum amount of sockets. Sample upgrades or other special requests (like underfloor heating) are expensive to pay for…

Then you have so far chosen the wrong providers. The vast majority of nationwide general contractors/total contractors/builders work quite properly and have a good, medium-level equipment in their service descriptions. More is always possible, no question – for such cases, I always label the position “reserves for extras.” However, if you are following in the footsteps of Stadt & Land, the faction of trailer hitch fans or similar, then this statement does not really surprise me.

That is exactly my biggest problem, that I cannot estimate something like whether it’s about 2000, 5000, 10000.

You know that with the choice of architect after the tender, with a general contractor already in the offer.

Again such a risk point: stagnant water and/or seepage water. That means with the 10k I’m not on the safe side, right? Or is there theoretically a residual risk that it could become more expensive due to the slope/gradient?

Sloped plots tend to have the highest rate of requiring additional foundation costs; I haven’t even mentioned embankment measures yet.

Thank you very much! – That settles the construction project, especially because of the risk regarding the plot.

You give up quickly...

There is plenty of saving potential in your construction project; starting with the choice of plot and ending with the house size. 185 sqm is quite a number; 150 sqm and arranged to be practical for everyday life is often a very good alternative... if not often even the better choice.

But let’s see what the current low interest policy and the inflated construction and real estate prices will bring in 10 years…

I won’t comment further on existing properties; you will find enough info about that here on the HBF.

I don’t believe interest rates will rise in the near future (2-4 years); but what will happen in 10 years no one can answer you seriously. Why don’t you simply take the obvious path?

Find a reputable provider (the home builder diaries here provide good tips, as do new residential areas) and have them create a design fitting your preferred plot and life situation (have you reserved/bought it?) and price it with a fixed-price offer. Then you will know quite precisely what this “house building” thing will cost you with general contractors with comparable service descriptions. If you also give him insight into the soil report, even better. In parallel, you can have talks with architects and get an impression of their person and their offer and expected costs (don’t forget to ask very clearly up front for a “free” consultation).

Prepared this way, you can in my opinion first decide whether you want to build a house or not. Burying your head in the sand won’t get you anywhere in 10 years either.

Rhenish regards

Hello construction expert,

Thank you

For a business economist, you have a rather destructive attitude...

Problems in construction – as is the case everywhere else, by the way – always arise when many people work on a project. That is sometimes very annoying, but in the vast majority of cases just a little irritating; exceptions of course prove the rule here as well. It always depends on what the solution looks like and how it is implemented, doesn’t it? By the way, this also distinguishes the reputable from the less reputable providers (to coin a new term for such providers instead of the usual expression)

sorry, that came across wrong. What I meant is: There are many builders who think: I can get a house for 200,000 euros... (and I simply don’t believe that or don’t want to admit it)
then they are amazed because it didn’t stay at 200,000 but became 250,000 and thus 25% over the calculated price. (Thanks to the additional financing combined with the interest, it gets really expensive…)
I don’t want to fool myself, but rather say from the start: Okay... quality has its price and this could be the cost.

Then you have chosen the wrong providers so far. The vast majority of nationwide general contractors / general planners / construction managers work quite properly and have good, medium-level equipment in their building specifications. More is always possible, no question – for these cases, I always specify the position “reserves for extras.” However, if you are on the trail of Stadt & Land, the faction of the trailer hitch enthusiasts or similar, then this statement doesn’t really surprise me.

In our area there is currently an enormous increase in rental prices and many are starting to build in the surrounding area; therefore, I suspect that many providers currently want to earn money alongside (the builders)…
What are trailer hitch enthusiasts? (I unfortunately don’t get it ;-/) The term is unknown to me :[

You give up quickly, too...

There is plenty of saving potential in your construction project; starting with the choice of land and ending with the size of the house. 185 sqm is quite a number; 150 sqm and arranged to be practical for everyday life are often a very good alternative... if not frequently the better choice.

I fully agree with you. The idea was that we choose a good location so that we could possibly sell it again in about 30-50 years.
We could live well with 150 sqm as well; only an appropriate study for my wife is important.
The builder recommended about 170 sqm to 200 sqm for 2 children with a study.
Currently, we live in about 90 sqm (however, modestly laid out) and that would basically be enough for us.

But I think if we use a B-location and then slim down the house, it should already become significantly cheaper.

About giving up: well, I can – like some in the financing thread – make many optimistic calculations, but I am rather a realist and say:
about 1500 euros per month I can and want to afford; (meaning according to the rough formula: x*12*100/i*t = 450,000), anything above would only be hoping
My wife’s income is fixed and predictable due to the civil servant status; with mine, I would rather not speculate with expectations
And to live only for the house… well, that’s not my life goal )

Regarding existing properties, I will spare you any further comments; you can find enough info about that here on the main forum.

Unfortunately, I do not know your opinion, I currently see it as follows for myself: many old buildings are overpriced due to the flight into real estate.

I don’t believe that interest rates will rise in the near future (2-4 years); but what happens in 10 years, no one can seriously answer you. Why don’t you simply take the obvious path?

Find a reputable provider (the builders’ diaries here provide good tips, as do new development areas) and have them create a draft, tailored to the preferred plot and your living situation, and price it with a fixed-price offer. Then you will know quite precisely how much the house construction with general contractors and comparable building specifications will cost you. If you also grant insight into the soil report, even better. At the same time, you can talk to architects and get an impression of their personality and their offer and expected costs (don’t forget upfront to very clearly ask for a “free” consultation).

Set up like this, you can in my opinion only then decide whether you want to build a house or not. Burying your head in the sand will not get you ahead even in 10 years

I also don’t believe interest rates will rise in the next 2-4 years, so we are currently informing ourselves and saving in the meantime for a planned house construction.

I have neither reserved nor bought a plot (only listed as an interested party), I want to inform myself first, etc., before rushing into any construction project and then realizing: Damn, I should have planned better, then I would have saved... Woulda, coulda, shoulda...

How long do you think one should invest as lead time for a solid planning including financing?

Hello,

What are trailer hitch friends? (I don't get it unfortunately ;-/) Term is not known to me :[

Insider joke ... sorry.

All those providers who promise that a high-quality single-family house can be built for €1000.00/sqm/living space. Possible - but for that the entire construction site has to be built with your own hands; to procure materials, you need a trailer hitch

I fully agree with you. The idea was that we take a good location so that we can possibly sell it again in about 30-50 years.

You leave out in your thesis that today's outskirts will in my opinion be the sought-after locations of tomorrow.

The developer recommended about 170 sqm to 200 sqm for 2 children with a study.

Did you arrive in a Jaguar? The guy is crazy!

And only living for the house... well, that's not my life goal :eek

Another good attitude!

Unfortunately I don't know your opinion, I currently see it for myself that many old buildings are overpriced due to the flight into real estate.

And mostly all overpriced or in a condition where a new building is cheaper because then the building fabric is also up to date.

How long do you think one should invest lead time for solid planning including financing?

In principle, this means - from my point of view - 3 talks. One with your main bank, one with an independent financing broker, and the last with an insurance broker. I would always recommend you to have these talks before you go into talks with providers. It is always more comfortable to decide how much of your financial possibilities you want to use than to let someone "blow smoke up your skirt." Also, I don't deal with the jack-of-all-trades sellers like: "with us you also get the right financing for the house." Such sellers do a lot, but as a rule nothing right

Rhenish greetings

What about the screed or floor... otherwise you will be living on concrete