Maximum land costs compulsory auction

Hello!

My wife and I will participate in a forced auction of a plot of land at the end of this year. According to the appraisal, the market value was estimated at around €115,000. We are now considering what our maximum bid can be, while still having enough left to build a house etc. on the property.

General information about you:

[*]Who are you?
Family with one child
She: 27, permanently employed music educator according to TvÖD, currently 67%, full-time from summer 2021
He: 29, permanently employed engineer, full-time
Junior: 1
[*]Are more children planned?
Another one possible in the next 2-5 years

Income and asset situation:

[*]What income do you have (gross/net)?
She: currently €1,200 net, from summer 2021 €1,500 net
He: €4,500 net (privately insured)
[*]How much child benefit do you receive?
€204
[*]Other transfer payments such as parental allowance, sick pay, etc.?
[*]How much equity do you have?
Around €15,000, of which €11,500 went into the bid security to the district court
Unfortunately not more, we "lived" and set ourselves up after university first

Expenditure situation:
Expenses already included in other items can of course be omitted. This list is not exhaustive and can be expanded or summarized as desired. Please make sure to indicate all costs monthly, even if they only occur annually!

Housing costs:

[*]for kindergarten, rent, electricity, heating, internet:
€1,220

Mobility costs:

[*]2 cars, we commute a lot
[*]for diesel and petrol, as well as car insurance and car taxes averaged per month:
€300

Insurance costs:

[*]incl. private health insurance for him and Junior averaged annually per month:
€1,000

Living expenses:

[*]drugstore, groceries, clothing, hairdresser:
€750

Savings contributions:

[*]€1,000 into savings account
[*]€300 into ETF savings plan (retirement provision)
[*]€130 Riester

Other expenses:

[*]maintenance payments
Netflix, Prime, Adobe Cloud, Spotify, iCloud, mobile phone etc.:
€85
[*]cats
€100

Total income and expenses:

[*]Total income
currently €5,904, from summer 2021 €6,204


[*]Total expenses
€4,885


[*]Balance
around €1,100


[*]Of which sum cold rent and dispensable savings contributions (e.g. saving rate for house)
Saving rate would be reduced to €500 (halved), rent of €765 would fall away

General information about the property:

[*]How big is the plot?
1170m2
[*]What are the dimensions?
23x50m
[*]What is the standard land value?
€95/m2
[*]Plot is completely level, but with remaining plants

That’s it for now about us.

Some time ago we already went to our house bank and informally discussed the financial framework with our advisor so that we roughly know where it can go. This resulted in a maximum financing volume of around €500,000.

From this amount we have now deducted the following:

- €300,000 for the house
We are thinking of 150m2 living space, features: house including photovoltaic, air-water heat pump, controlled residential ventilation, underfloor heating, clinker brick facade, without chimney/fireplace, cellar only if the soil survey really demands it, then the living space of the house would rather be 125-135m2 on top

- €15,000 kitchen
- €10,000 furniture
- €20,000 garden and carport
- €15,000 ancillary construction costs

That leaves €140,000

- 6.5% real estate transfer tax

That leaves €131,500

- €5,000 plot development (to cut down 3 trees, remove 50cm high blackberries on 70% of the plot)
- €2,500 house connections

That leaves a budget of €124,000 for the plot, which would be our maximum bid at the forced auction.

Does that sound right? Have we forgotten anything fundamental? Are the values not plausible?

Best regards,
Martin

300,000€ for the house
we are aiming for 150m2 living space, features: house including photovoltaic, air-water heat pump, controlled residential ventilation, underfloor heating, clinker brick, without fireplace/chimney, basement only if the soil survey strongly suggests it, then the living space of the house would rather be 125-135m2

- 15,000€ kitchen
- 10,000€ furniture
- 20,000€ garden and carport
- 15,000€ ancillary building costs

2,500€ house connections

Where do these numbers come from? T&M Massivbau?

A clinker brick house with photovoltaic is more expensive.
And what does the 2,500 house connections include? Isn’t that a bit too little?
I would also double the ancillary building costs.

But I think it is probably your first auction date?, that you will not win the plot. For that you need practice, thick skin, and the very rare luck that bidders stay home because of C.
More likely, the petty cash of the next builder is already reserved – their breath lasts longer.

I also find the house costs set too low. Better calculate with 2200 EUR/sqm. House connection costs are too low. I would estimate about 8-10 thousand EUR including necessary civil engineering work. Garden + carport for 20k is really almost nothing. In my opinion, that only suffices for a self-build kit from the hardware store and basic materials for the outdoor facilities, which then have to be completely created in [EL]. Your zero budget for earthworks. Very few manage with the minimal costs included by their general contractor for this item. Overall, about 60k are missing from your calculation, so that I could say, it's tight but could work.

P.s.

My wife and I will at the end of this year

In the meantime, check out other auction dates - then you'll know what I mean.

Where do the numbers come from? T&M Massivbau?

A house, brick-clad with photovoltaic is more expensive.
And what do the 2500 house connections include? Isn't that a bit too little?
I would also double the ancillary building costs.

But I think this is probably your first auction date?, that you will not win the bid for the plot. For that, you need practice, thick skin, and the very rare luck that the bidders stay at home because of C.
More likely, the petty cash of the next developer is already reserved - his breath lasts longer.

Thanks for the answer.
The price comes from various catalogs of different GCs.

We don’t expect to win the contract either. But if you don’t even start trying, it will never work.

So house connection rather up to 10,000€? The lines are all in the street. What is missing are the connections (water, electricity, fiber optics) to the house.

I also find the house costs set too low.
Better calculate with 2200 EUR/sqm.

House connection costs are too low. I would calculate about 8-10k EUR including necessary civil engineering works.
Garden + carport for 20k is really almost nothing. In my opinion, that’s only enough for a DIY kit from the hardware store and basic material for the outdoor facilities, which then have to be completely done in EL.

Your zero budget for earthworks. Most seldom get by with the minimally included costs from their GC for that item.

Overall your calculation misses about 60k for me to say it will be tight but could work.

Thanks for the tip about garden costs. So far I have zero gut feeling due to lack of experience.

If 60k are missing, then that’s really steep. Well, we’ll see. Thank you!

The price comes from various catalogs of different GCs.

Catalog prices are bait prices.