Land in sight, is house construction financially possible?

When it comes to the question of whether I can afford the project, I have to look at the total costs and not just the house alone. And that includes the land and the additional construction costs. This was not about a price comparison either.

That’s also what always bothered me about the general contractor. They only calculate the house and mostly in a way that you can’t really compare prices. No general contractor has shown the total costs including all the additional construction costs, because otherwise people would probably run away in droves. But that’s part of honesty.

For my example, I have to add that we calculated without own labor and with a photovoltaic system with battery storage. There is, of course, potential for savings there. For example, leaving out the photovoltaic system or doing one thing or another within your own capabilities (which are limited in my case) by yourself. But it is and remains incredibly expensive, and combined with the high interest rates, it’s simply no fun.

We are currently concretely in the planning phase and to be honest, it’s no fun. Family with 2 kids and the plot already exists. We got it from the city at the beginning of the year for an unbelievably cheap price: 750 sqm for just under 90,000 EUR. In the last 6 months, we have obtained 4 concrete offers for the same house. 2x general contractors, 1x architect, 1x regional family business. Timber frame construction, no basement, carport for 2 cars, small shed for bicycles and other equipment, 2 full floors with about 155 sqm living space, 1 family bathroom, 1 guest bathroom, normal fittings. It can’t be smaller!!! The cost estimates range between 720,000 EUR and over 800,000 EUR (including land). The cheapest offer was from a general contractor with a factory in Poland, so not exactly the most expensive manufacturer.

Well, if you calculate 100k ancillary building costs and subtract the 100k for the plot, that leaves at least 520k for the house alone. I have already received several offers for significantly larger houses for less money. You have probably set a very high standard or the plot has very special requirements.

Yes, that is already absurdly expensive. I know at least one provider who delivers something like that turnkey for well under 400,000 EUR.

100k ancillary building costs is also really a lot, for a normal plot...

I especially imagine conversations with banks to be simply tedious at this point in time.
As a newly self-employed person, my tax returns are not very informative, no idea if my tax advisor or the economic consulting service of the Association of Statutory Health Insurance Physicians can make reasonable projections that banks would accept. On top of that, my wife is on parental leave (she will not go back to work after one year).
And even then, Dr. Klein does not offer me a particularly high loan even with a net household income of over 5000 euros.. and I have no idea how it would work with the KfW loan if we get it at all.

As of today, I tend to look again at the existing housing stock. We are not very well connected locally, but in recent years 3-4 quite nice properties from the early 2000s have come onto the market that were available for under 500k. Maybe I should get active in a shooting club or church. :D

And personally, I can only recommend building when the need is there and the finances fit. Any bet on the future is uncertain

The odds are good that those waiting hopefully for Godot will be the losers. That is why my motto: "Build now".

As of today, I tend to look at existing properties again. We are not very well connected locally, but in recent years, 3-4 quite nice properties from the early 2000s came onto the market for under 500k.

Too old, ten to fifteen years is optimal. The next "class" goes up to thirty years, and beyond that either the modernity compromises become more painful or new construction would be "not more expensive anymore" ;-)

Maybe I should get active in a shooting club or church.

Which only makes sense at the place of residence, but again brings clients into the practice ...

The odds are good that those waiting hopefully for Godot will be the losers. That’s why my motto: "Build now".

Too old, ten to fifteen years is optimal. The next "class" then goes up to thirty years, and beyond that either the modernity compromises become more painful or new construction would be "not more expensive anymore" ;-)

Which only makes sense at the place of residence, but again brings customers to the practice...

If I just do a rough estimate for fun with Hanse Haus...

Villa 133 in the QNG+ line is priced
Turnkey – from €327,359
Completely finished ready to move in according to your wishes. After handing over the keys, only the matching kitchen and your individual home furnishings are missing.
So 350k including the base slab + exclusive kitchen (the kitchen we could theoretically even mostly take with us, ours is 3 years old and modular, I could even manage disassembly and reassembly, trailer is available).
Then with a plot that is level, fully developed, without major excavation etc., I end up at 60k(?) ancillary construction costs, that would be 410k(?)... plus a carport with a small shed area plus garden sometime later.

If we were to get the promotional loan, that would be 190,000 euros as a QNG loan (2 children), which we would get on favorable terms. Accordingly, we would need 220k under normal conditions (+ possibly garden, carport... although the subsidy for that could well be enough, if partly done by ourselves).

Is that completely unrealistic?

I can shower you with patients, thanks for the tip that something like that might come to me more in clubs than through house agents. ;)